Payment Processing Guide June 2015 FOR INFORMATION

Purpose and Scope Objective Focus: Effective vendor relationship management is vital to HA’s reputation and our ability to achieve cost savings, ensure continuous operations, and meet our passenger’s expectations Late payments can interfere with our daily operations and may put us at higher risk of defaulting upon contractual obligations Challenges: High volume of payment requests due to multiple projects and vendors throughout the different lines of business at HA The various number of approval levels can cause the payment process to be lengthy Both wire and ACH pay functions are processed manually -2-

Purpose and Scope (cont.) Goals: This guide was created to assist in streamlining the payment process and to further interdepartmental communication Major steps in the payment process are outlined to serve either as a quick reference reminder or training aid Links to the various resources / forms required throughout the process are included with each step Any questions or clarifications needed about this guide can be directed to the Treasury Department *Steps that require action by the person requesting the payment will include the verbiage “Requestor”. Other steps listed not including “Requestor” are for informational purposes and are processed by approvers / other departments. -3-

Complete Vendor Packet Vendor Approval Enter Requisition for PO PO Approved Prep Invoice / C-138 Upload Invoice to DMS Matching Process in PeopleSoft Payment Outflow -4- Varies 4 Business Days ImmediateVariesImmediate 2 Business Days 3 Business Days See Outflow Slide

Vendor Information Step 1: For New Vendors, Requestor Completes Vendor Packet  Link to Packet: ackets/Forms/AllItems.aspx ackets/Forms/AllItems.aspx  Requestor sends to Category Manager in Procurement for BIR Approval  After approval received, Requestor sends to Accounts Payable   Vendor set up in PeopleSoft within 4 business days  Link to PeopleSoft:  Click on PeopleSoft P

Purchase Order (PO) Approval Step 2: Requestor Creates Requisition / Requests PO  Link to PeopleSoft Manuals: ment%20Documents/Forms/PeopleSoft%20Manuals.aspx ment%20Documents/Forms/PeopleSoft%20Manuals.aspx Step 3: PO Approved  Timeline for PO approval dependent on workflow The number of required approvals needed in PeopleSoft will depend on the dollar amount of the requested PO Levels of Authority Chart Link: AllItems.aspx AllItems.aspx -6-

Invoice Processing Step 4: Requestor Preps Invoice / C-138 (Check Request)  Link to C-138 Template & Instructions: Forms.aspx Forms.aspx Step 5: Requestor Uploads Invoice to DMS (2 Business Day Process Time)  Please remember to check the DMS Reject Queue to ensure invoice was processed  Link to DMS Site:

Matching Process Step 6: Once the Invoice clears DMS, PeopleSoft will match it against the PO (3 Business Day Process Time)  If the PO is sufficient, no action is necessary on the requestor’s part for this step  For invoices where the requested amount exceeds the unused amount of the associated PO, the invoice will be placed in Match Exception  Requestor should check Match Exception Query in PeopleSoft to ensure the invoice was successfully matched  If you want an automatic notification of rejections to be ed to you, please contact to have that set -8-

Payment Outflow Step 7: Payment Outflow  For Checks & ACH Requests  All approved invoices in PeopleSoft as of 10AM (weekly) will be processed according to the invoice’s payment terms  Wire Requests  Once approved in PeopleSoft, Accounting reviews and sends to Treasury for payment (4 Business Day Process Time)  Treasury sends out wire –International wires are processed once per week –Domestic wires are processed 2-3 times per week  Foreign wire requests need to be fully approved and received by Treasury at least 10 business days before the end of the month in order to ensure same month processing **Foreign cut-off: No foreign payments are processed in the last 6 business days of the month -9-

Mahalo. Questions?