Our goal with the CiraConnect Payables Lockbox is to facilitate fast and efficient processing of your community associations' payables. As a companion piece to the more detailed Payables Lockbox Administration for the Management Team Process and Service Description, this Tip Sheet is designed to give managers a high-level overview of their role in the accounts pavable process.

Table of Contents

• An Overview of the Workflow Path
• Adding a New Vendor
• Submitting an Invoice into Workflow
• Pathways to Submit an Invoice into Workflow
• Manually Creating a Workflow
• Owner Refunds and Reimbursements
• Manager Review and Approval
• Deleted Workflows
• Payment Disbursal
• CiraConnect Payables Lockbox Fulfillment
• Local Check Printer
• Electronic Funds Transfer (EFT)
• Automated Clearing House (ACH)
• Wire Transfers
• Completed Workflows
• Reclassifying Completed Workflows

An Overview of the Workflow Path

A disbursement request travels through a systematic path via an online AAP (Association Accounts Payable) Workflow that provides a routing and approval process designed to manage community association invoices, reimbursements, and other disbursement requests from transaction data entry through the payment process. The workflow follows a processing flowchart. At a summary level, the processing flow is depicted in the diagram below:

Adding a New Vendor

Of course, you must hire a vendor before you can pay them. Once that decision is made, adding a new vendor into CiraNet can only be done by a member of the Payables Lockbox team. Therefore, for those of you utilizing the services of the CiraConnect Payables Lockbox Shared Services Group, requests for new vendors should be directed to them at accountspayable@ciramail.com or, preferably, by Case to that department. Alternatively, if you have a new vendor invoice merged with a W-9, you can submit it directly into workflow, and it will be added via the dedicated Vendor Edit team.

Please note that the vendor must submit and keep on file a Form W-9 to comply with federal tax laws. To protect all parties, we cannot process the invoice without it, with a few select exceptions for certain vendor types.

Submitting an Invoice into Workflow

There are a few basics we suggest all vendors take note of when submitting their invoices to help us process the information faster:

• To help avoid misdirects, since we process invoices for several management companies across the country, they should ensure the community's name is on the invoice. The full legal name is preferred since many communities share names like other communities in different regions.
• Statements and proposals can be challenging to process for several reasons, including understanding the correct amount to pay. Some management companies have policies prohibiting payments from statements and proposals, so we encourage vendors to submit only individual invoices for payment.
• There is a 1:1 relationship between the AAP Workflow and an invoice. Do not combine invoices into a single document to try and submit them in bulk. If you intend to merge payments that way, that can be achieved using the settings in the Vendor Management module.
• While there are several ways to submit an invoice, we encourage vendors to submit them directly to CiraConnect so your staff does not have to upload them. We also discourage internal team members from directly accepting hard copies of invoices to avoid delays in processing since managers and their staff are busy and may forget to enter them immediately into workflow or risk losing invoices. To that end, we offer a dedicated Vendor Portal as one of the many ways to submit invoices directly to the Payables Lockbox Processing team. Dathwave to Submit an Invoice into Workflow

Pathways to Submit an Invoice into Workflow

Please be cautious to use only the methods outlined in the Process and Service Description.

Manually Creating a Workflow

Submitting an invoice directly into workflow through one of the pathways available directly in CiraNet offers a workflow form that users can fill out in part or in detail to carry the invoice to the next step. This process is described in detail in the Process and Service Description, but this is an overview of the form and options a submitter will see:

You do not need to complete all the details to submit an invoice into workflow. Submitters can complete the top portion of the form, select Upload Vendor Invoice, upload the invoice file, and submit it in Scanned status without any additional details required.

If you prefer to submit the invoice with the accompanying details, essentially attempting to complete the first processing step, select Generate a Payment Request instead. The additional fields will then become enabled. There are some key points to be aware of:

• Handling. Given that we process checks daily, and payments can be disbursed the morning following full approval for most invoices, standard handling should suffice in most cases; however, in an emergency or when a special situation arises, we offer these additional handling options:

Please leave notes for clarification when selecting a handling other than Standard.

• Payee. Clicking on the ellipsis opens a three-tabbed menu of possible payees:

1. Vendor. This is a list of all active vendors for the community. The first election is Not in List. Use this one if you do not see the vendor listed.
2. Owner. One advantage of CiraNet is that owners do not have to be added as community vendors to be reimbursed'. A list of all current owners is available on the second tab.
3. Community. This tab lists other communities to which you have access on the CiraNet platform. It allows you to choose one as the Payee, which can be convenient if a subassociation, for example, pays the Master for services or if two communities have a joint usage agreement for a shared common area.
• Print As. If an owner is selected as the Payee, but if someone else in the household is the individual due the reimbursement, such as a tenant, or if only one spouse should be listed on the check, this field is enabled with this selection, allowing you to change the Print As to reflect that name:

• Due Date. Use the date specified on the invoice. If none is referenced, please note that our policy is to default to a Net 30 from the invoice date. This does not impact when the disbursement is made, but does impact your reporting and metrics; therefore, we encourage you to follow that guideline.
• EFT Account. If the vendor has been configured for either EFT (Electronic Funds Transfer) or ACH (Automated Clearing House) payment, this will change to Yes. You can also use this in other circumstances to prevent a check from being cut. For example, if the vendor was paid using another method, such as wire transfer, and the workflow is to document the expense, this toggle would change to Yes. It is essential to know that if this toggle is set to Yes, the system will not issue a check.

• Default Line Item and New Line Item. These options exist to create a line/lines in the field below to "code" the payment (assign a GL to the expense). Default coding and handling, and even fund disbursement, can be set for a vendor or individual vendor accounts from the Vendor Management module. We recommend setting these default values from the community-level Vendor Management module wherever possible to save yourself time later and avoid potential miscoding. When set, the information should automatically populate in the grid below. If it does not, however, you can click the Default Line Item button to populate it. If no default coding is set, you need at least one line item in the grid field to proceed, so you can create the line by clicking on New Line Item and then populating the details for the line. The columns in the line differ by community. For example, suppose your community has expenses per different neighborhood/building cluster. In that case, you may need to set that value, but generally, the columns are the main GL (General Ledger), sub-category, amount, fund, and description. Multiple lines can be added.

Owner Refunds and Reimbursements

Owner refunds, which involve returning overpayments on an owner's account, are handled differently than owner reimbursements, in which an owner bought something on behalf of the community and is being paid back. Most management companies have SOPs about when an owner is eligible for a refund, so please first make sure you are familiar with your company or community association's protocols, but if the refund request meets the eligibility, it is processed through the Receivables Lockbox team, not a request initialized as an AAP Workflow. The reason is that it must first be an adjustment on the owner's account. Create a Case for the Accounts Receivable box with the request and attach any substantiating documentation. They can adjust the owner's account using a process that automatically creates an Approved AAP Workflow for the owner.

In the case of reimbursements, they often consist of a collection of receipts scanned together that lack the cohesiveness of a single invoice with clearly defined information to key in. Once a payment is entered into the workflow, it goes through a verification step. A verifier will not be able to determine the correct information in those situations; therefore, we have a cover form available to collate all the information so that a third party can enter the details for payment. As with refunds, management companies have their own disbursement protocols and audit controls surrounding reimbursements, such as requiring a board member to sign the cover page, so be sure you are aware of and follow your company's policies. However, a generic cover page is available for download and use in CiraHelp.

Manager Review and Approval

Once the Lockbox Payables team has processed the invoice in their two verification steps, the assigned manager can review the invoices via the workflows. Reviewing and approving pending workflows can be a simple and quick process. However, unless auto approval has been set, we cannot move the invoice forward for payment without this step, so monitoring the approval queue at least once daily is imperative.

There are two primary pathways to access pending approvals, My WorkInBox and Invoice Approval, both accessed from My Work Queue in the Navigation Pane. My WorkInBox, which by default opens to Show My Work but can be switched to Show ALL Work, will load only those approval items directly assigned to you but loads all open items requiring approval in addition to invoices, so also pending mass communication approvals, and any violation records requiring review. This makes this queue a great one-stop shop for all items needing review, but with all that material, it can take the page longer to load. The alternative, if you are only interested in approving invoices at the time or are a supervisor with an extensive portfolio, is to use the Invoice Approval, which is nested under Payables Workflow. This page opens automatically to Show ALL Work, but is only the invoice workflows, so the load time is nearly immediate. From either location, the workflow opens with the same information, and the options are the same. To begin, click on the Action button and select Process Workflow.

The workflow that opens is loaded with either direct information or the access to information that you need to be able to make a complete evaluation and decision on the invoice's validity:

These are some of the features of the workflow field in the review/approval step to take note of:

• Settings. Clicking on the gear icon lets the user change how the invoice/backup opens in the frame. The default is to the right, but users can move it to the left or set it, so the backup opens in a new pane. This will change the settings for all workflows, but it can be changed again at any time.
• GL Post. This field's default is the current date, which is appropriate for most invoices; no changes need to be made. Once the workflow is approved, the GL Post date will dictate the period for which the transaction will be posted. If you want to delay a disbursement, the GL Post Date can be set to a future date, preventing the system from disbursing a payment until that day. This is helpful for recurring payments, such as loan installment payments. But remember that for any vendor on EFT, where the vendor is the entity drafting the payment, a GL Post Date set for a future period will not prevent that draft from happening on the vendor's schedule.
• AAP Invoice Line Items. This is where the GL line items can be set or changed as part of the approval items. In many cases, you will open to no GL coding being set. The AP Processors do not set GL Coding as part of their information processing. As with other fields, this configuration can differ depending on the community, but this is a typical view:

You can select the GL and Sub Category using the drop-down menu or begin typing in the number or label you want. To code the invoice using multiple line items, click Add to open another line item, and repeat that as often as necessary to code the activity correctly. All lines must reconcile with the Amount to Pay to proceed to the next step. If a default GL coding has been set in the Vendor Management module, click the Default Line Items to have it automatically populate this area. Adding a Description at this level does not populate the main Description box in the AP Invoice Header Detail, but the reverse scenario does cross-populate.

• Deny, Place in Review, Approve, or Exit. These are the action options to complete the review.
1. Deny. Selecting this will open a pop-up with a form field to explain what needs to happen with the workflow. If an error needs correcting or updating, the Lockbox Payables team will remediate it based on the information you provided and advance it for a second review. If the intent is not to pay it, indicate why, and they will delete the Workflow.

2. Place in Review. This allows you to save any changes or settings you have made in the workflow form but keeps it in your queue. This may be used if, for example, you need to check on the work done before approving the payment. It cannot be advanced for payment so long as it is in this status, so use it prudently and monitor your queue daily to evaluate any you have previously placed in that status.
3. Approve. This, on the other hand, moves it forward to the next step.
4. Exit. This closes the workflow without saving any changes you may have made to the form and does not remove it from your pending approval queue.

Deleted Workflows

If it is determined that the invoice is a duplicate or invalid, the workflow will be Deleted, meaning it will no longer be active. However, the workflow is still in the system. It can be viewed in Search Invoices by switching

the Status filter from Open to All, from the vendor's activity in the Vendor Management module, or My Submitted Invoices. The system generates an email to the CiraMail box for the community to notify the manager that the workflow has been deleted, and the reason entered by the processor will be included in the body of the email, with the invoice attached for reference.

Managers and Accountants cannot delete workflows directly. They will need to deny the invoice back to the Payables Lockbox team with a note explaining why it is not to be paid, and that team will delete it.

Payment Disbursal

Of course, our work is not done until payment is made to the vendor. CiraNet supports these payment methods:

CiraConnect Payables Lockbox Fulfillment

We print checks from our main corporate office and mail them first-class to the payee once all approvals have been met.

We print and mail checks Monday through Friday, except for mail holidays. To have a check mailed on a specific day, AAP Workflows should be approved by the end of business the day before.

Local Check Printer

If a local check printer is available (a specific printer setup must be preconfigured and supplied with the appropriate toner and check stock), checks can be printed at a local office. However, all approval requirements must still be met.

For more information on local check printing, printer specification, and setup, please refer to CiraHelp.

Electronic Funds Transfer (EFT)

With your authorization, and where possible, we will gladly work with your priority vendors to set up payment via EFT if the vendor offers it. By default, insurance and utility vendors are placed on EFT toward the end of the on-ramping process. Communities must have a stable cash flow to be eligible, and there may be a one- to two-billing cycle delay for the EFT to become effective.

Unless the management company or community has elected to auto-approve EFT invoices, they will still be viewable through your Work Inbox for review. However, the vendor will withdraw the funds regardless of the manager's or board's action during the review process.

Automated Clearing House (ACH)

Some, but not all, of the partner banks we work with can support and allow us to offer ACH to your valued vendors. Check with your leadership team or Account Manager for a list of available banks. Once the workflow process has met full approval for an invoice, the system will push a payment directly to the vendor's bank account. They will be notified via email that a payment is being processed.

The vendor must complete a form sent to a restricted CiraMail address. Only a select team can view the information and configure the vendor for this service. Therefore, please ask that they follow the instructions on the form carefully to protect their information. The form to provide them, including the instructions they need, is in CiraHelp.

Wire Transfers

CiraConnect can also make payments by wire transfer. In such cases, authorized individuals will process and approve the wire transfer. A corresponding payment will be posted in the CiraBooks Accounts Payable module and applied to the open AAP Workflow with the corresponding invoice.

If you have an emergency, such as an impending utility service cut-off, and need to explore alternate payment options, call the Accounts Payable hotline at 972-380-3530 with the applicable AAP Workflow number. The workflow must have met all approval requirements for them to assist you.

Completed Workflows

Once a payment has been processed and applied to an open AAP Workflow, the Payment Status will be updated to Paid in the application.

Users can click on this Payment Status to find details on the payment itself. In the case of a check payment, we can immediately see the check number and whether it has cleared. If it has, the date it cleared will be available.

Users can click on the check number to find even more details, notably a copy of the check image. This can be helpful to provide the vendor, mainly if they still show it as an open item but the check has cleared, so they can better research it on their end.

If a vendor states they did not receive a check payment, we request they wait 30 days before asking you to reissue it. This allows mail delivery time, the vendor to cash, and the bank to clear the check. Your contract may include additional charges for reissued payments, so there is even more reason to allow ample time before asking for a new check. But, if necessary, after the 30 days have expired, you can create a Case for the Accounts Payable team with the vendor's name, workflow, and check numbers.

If the payment was made via EFT, it will be indicated in the Check # column.

Reclassifying Completed Workflows

If the workflow is within an open accounting period, users can reclassify them. This includes many board members, depending upon their access. Open the workflow form, make the changes needed in the AP Invoice Line Items, and click the Reclass button on the lower right-hand side.