Accounts Payable

Summary

EFTisHCRManorCaresexpectedmethodofpayment.
EDIisHCRManorCarespreferredmethodofinvoicing.
AllnewvendorsmustbeapprovedbyCorporatePurchasingpriortopurchaseofany
productsorservices.
AllpotentialnewvendorsmustincludeacompletedW9formandanEFTenrollment
formwithvoidedcheckinorderforthevendortobesetup.
AllW9sthatarereceivedwithaninedigitSocialSecuritynumbermustprovidetwo
businessreferencesnotaffiliatedwithHCRManorCare(name,addressandphone
number).
AnupdatedW9/EFTformisrequiredforanychangesmadetoanexistingvendors
reportinginformation.
Allinvoicesmusthavethevendorname,vendorremitaddress,descriptionof
service/product,invoicenumber,invoicedate,invoiceamount,HCRManorCaresfacility
businessunitnumber,nameandaddress.
Vendortermsare45daysforproductvendorsand35daysforservicevendors.
PaymentTermisthenumberofdaysfrominvoicedatetopaymentdate.
Allinquiriesregardingthestatusofpaymentshouldbedirectedtothefacilitywherethe
servicewasperformedorproductpurchased.

For more detailed information regarding HCR ManorCares Accounts Payable process,
including answers to Frequently Asked Questions(FAQs), please see below.

Accounts Payable Information

HCRManorCarescorporateAccountsPayableiscentralizedinToledo,Ohio.Eachyear,thisdepartment
processesmorethan1millioninvoices,workingcloselywithourbusinessunitstopaysuppliersontime.
APcontinuouslystrivestoimproveitscustomerserviceandtoworkcloselywithvendorstoresolve
paymentissues.Foradditionalinformation,pleaseseebelow,includingFAQs.

Payment Type
EFTisHCRManorCaresexpectedmethodofpaymentforallpaymentsprocessedthroughtheAccounts
Payablesystem.Theexpectationisthatallvendorsare100percentcompliantwithourEFTprogram,
whichoffersthebenefitsoftimelypayments,lesspaperwork,improvedcashflowandconvenience.

New Vendor Request

AllvendorsmustbeapprovedbyCorporatePurchasingpriortothepurchaseofanyproductsor
services.Failuretodosowillresultinnonpaymentofinvoices.Aspartofthisrequest,allpotential
newvendorsmustincludeacompletedW9formandanEFTenrollmentformwithvoidedcheckin
ordertosetupthevendor.TheW9andEFTformsmustbecompletedandsignedbythevendor.Both
oftheseformsareincludedonthevendorpage.Allvendorrequestssubmittedwithouteitherofthese
twoformswillbereturned,andthevendorwillnotbesetup.
HCRManorCaresVicePresidentofPurchasingwillreviewandapproveallnewproductandservice
vendorspriortothefacilityplacinganorder.AfterthePurchasingDepartmenthasacceptedthe
vendor,thevendorstaxpayernameandTaxIdentificationNumber(federalIDorSocialSecurity
number)willbematchedwithIRSrecords.Vendorswillnotbesetupuntilthisinformationmatchesthe
IRSrecords.Typically,vendorswillbesetupwithin10businessdaysofreceivingthecorrect
information,completedW9formandcompletedEFTenrollmentform.
Allcreditapplications(ifrequiredbythevendor)shouldbesenttoCorporatePurchasingforcompletion.

Purchase Service and Purchase Labor Vendors

Allservice/laborvendorsmustbeprocessedandpaiddirectlyfromtheCorporateAPsystem(payments
arenotgeneratedatthefacilities).
TheIRShasbecomestricteronthefinelinethatseparateswhenavendorqualifiesasaPurchase
ServicevendororasanEmployee.IfavendordoesnotmeettheIRStestqualifyingitasaPurchase
Servicevendor,HCRManorCarewillbefined.ToensurethatHCRManorCarehasanorisksystemin
place,allW9sthatarereceivedwithaninedigitSocialSecuritynumbermusthavetwobusiness
referencesprovided(name,addressandphonenumber).Thesereferencescannotbeaffiliatedwith
HCRManorCareandwillbekeptonfileatthecorporateofficeandfurnishedtotheIRSwhenHCR
ManorCareisaudited.

IfavendorcompletesaW9formwithaninedigitSocialSecuritynumberandcannotfurnishatleast
twobusinessreferencesorotherproofoflegitimacy,orfailstheindependentcontractortest,the
vendorcannotbesetupintheAccountsPayableSystemasaPurchaseServicevendor.Thisindividual
nolongerhasthestatusofvendorandmustbetreatedasanemployee,withallapplicabletaxes
deductedfromhis/herpay.
Existingvendorsinvoicesmustmeettherequirementsstatedaboveortheinvoicecannotbeprocessed.
Allrequestsforpaymentmustbethroughthevendorsformalinvoice,preparedbythevendor.

Existing Vendor Updates

AnupdatedW9formisrequiredforanychangesmadetoanexistingvendorsreportinginformation.
Thisincludesvendorname,identificationnumber,address,etc.Thisformisarequirementsetforthby
theIRSperitsPublication1679.FailuretocomplywiththeIRSmayresultinfinesforbothparties.An
updatedEFTformisalsorequiredforanybankingchangesmadebythevendor.

Vendor Terms and Conditions of Payment

StandardvendorpaymenttermsareestablishedbyHCRManorCaretomaintainabalancebetweencash
inflowsandoutflows;createandsustainclearrelationswithvendors;andtoallowforefficient,cost
effectiveprocessing.Periodically,standardpaymenttermsarereviewedandconfirmedoradjustedto
betterreflectourcurrentoperatingenvironment.Thestandardpaymenttermsrangefrom35daysto
45daysforallnewvendors.
PaymentTermisthenumberofdaysfrominvoicedatetopaymentdate.Allinvoicedatesmust
beaftergoodshavebeenreceivedand/orserviceshavebeenprovided.Predatedinvoiceswillbe
rejectedortermswillbeextendedtoconformtothecompanystandard.Theupfrontestablishmentof
clearpaymentpracticeswillhelpensurepositivevendorrelations.Thestandardtermsarenot
negotiableandwillbeusedforallpaymentsregardlessofvendorrequestsortermsperinvoice.
Ifextenuatingcircumstanceswarrantanexceptiontothestandardterm(forexample,thevendoris
offeringasubstantialearlypaymentdiscount),refertherequesttotheAccountsPayableDepartmentin
Toledo(apvendorinquiries@hcrmanorcare.com)Pleaseincludeadetailedexplanationforthe
exceptionrequest.Iftheexceptionrequestisgranted,futurepurchaseswillbepaidaccordingtothe
newterm.Paymentsforanypreviouspurchases/invoiceswillbepaidbasedonthestandardterm.

Accounts Payable FAQs

WhatdoIneedtodotoensurepromptpaymentofmyinvoices?
Inordertogetpaidtimely,allvendorinvoicesmusthavethefollowingoneachinvoice:

VendorName

FacilityBusinessUnitNumber

VendorRemitAddress

FacilityName

DescriptionofService/Product
FacilityAddress

InvoiceDate

InvoiceNumber

InvoiceAmount
WhomdoIcontactregardingpaymentstatus?
Allinquiriesregardingthestatusofpaymentshouldbedirectedtothefacilitywheretheservicewas
performedorproductpurchased.
WhomdoIcontactwithinvoice/paymentissuesorpaymentremittance?
Allinquiriesforinvoice/paymentissuesorpaymentremittanceshouldbedirectedtoAPVendor
Inquiries(apvendorinquiries@hcrmanorcare.com),andshouldincludeasmuchdetailaspossible,
includingvendorname,vendornumber,invoicenumber,invoicedateandinvoiceamount.Pleaseallow
aresponseperiodof24hours.
HowdoIsubmitbasicchangestomycompanysdata?
Basicchangestoyourcompanyinformation(i.e.newaddress,bankinginformationorcontactnumbers)
canbesubmitteddirectlytotheattentionofAPVendorInquiries(apvendorinquiries@hcr
manorcare.com).AllvendorinformationchangesrequireanupdatedW9and/orupdatedEFTform
withanattachedvoidedcheck.
WhatifIwassentapaymentinerror?

Ifacheckwasreceivedinerror,orforthewrongamount,returntheuncashedcheckto
theaddressbelow.
Ifthecheckhasbeencashedinerror,submitacheckfortheequivalentamount,
payabletoHCRManorCare,andreturntotheaddressbelow.Pleasereferencethe
originalchecknumber.
IfanEFTtransferwasreceivedinerror,orinthewrongamount,pleasesubmitacheck
fortheequivalentamount,madepayabletoHCRManorCare,andreturntotheaddress
below.

HCRManorCaresCorporateAddress:

HCRManorCare
Attn:AP7thfloor
333N.SummitSt
Toledo,Ohio43604

Electronic Funds Transfer (EFT)

Whatbenefitsdoeselectronicpaymentofferme?
HCRManorCaresendspaymentelectronicallydirectlyfromourbanktoyourvendorbankaccount.EFT
runswillbeprocessedonaweeklybasisandpaymenttransmittedaccordingly.Thisresultsinontime
payments,lesspaperworkandimprovedcashflowduetoafastersecurepayment.Thisisthepreferred
methodofpaymentforHCRManorCare.
HowdoIgetsetuponEFT?
Ifyouhaveabankaccount,HCRManorCarecantransmitthefundselectronicallytoyou.Allyouneed
todoiscompletetheEFTenrollmentform,attachavoidedcheckandsubmittoHCRManorCarefor
setup.
Willthiscostmeanything?
No,therearenocoststothevendor.
HowwillIknowwhatHCRManorCareispayingmefor?
EachweekwhentheEFTpaymentsaregenerated,youwillreceiveanemailwithanExcelremittance
attached.Theremittancewillprovidefacilitynameandnumber,invoicenumber,invoicedate,invoice
amount,paymentIDandpaymentamount.Pleasebesurethatyouincludeavalidemailaddresson
yourEFTenrollmentform.Itwilltakeapproximately48hoursbeforethefundsareinyourbank
account.
Whatifmybankinginformationchanges?
HCRManorCarewillcontinuetousethebankinginformationonfileuntilanewEFTenrollmentform
(withavoidedcheck)isreceived.Oncethecompletedformisreceived,ittypicallywilltakefive
businessdaystoverifythebankingchangeandupdatethesystem.
Whatifmyremittanceemailchanges?
Ifyouremailchanges,contactAPVendorInquiries(apvendorinquiries@hcrmanorcare.com).Please
includeyourvendornameandvendornumberthatwillbeaffectedbythisemailchange.

Electronic Data Interchange (EDI)

EDIhasproventobethemostefficientwayofconductingbusinesswithourvendorsbyelectronically
sendingandreceivingcorebusinessdocuments.
Thissystematicprocessofelectronicallyexchangingkeyinformationaddsvalueandimproved
functionalityforbothHCRManorCareandourvendors.Thisenablesustoimprovecustomerservice,
lowerexpensesandstreamlinebusinessprocessesbyeliminatingmanualdataentry.
WeexpectourvendorstobeginexchangingEDItransactionsassoontheyareassignedaspecificvendor
number.
TheprocessofEDIisaccomplishedbyhavingbusinessdocumentstranslatedintoEDI810format,
version4010.
InordertoconformtoourEDIstandards,eachvendormust:
Useauniqueinvoicenumberingsystemforallinvoices.
SendallinvoicesviaEDI.
ProvidetheabilitytocancelaparticularinvoiceandrebillinthenextEDIfeed.

UpNetTechnologies
IfyoudonthaveanEDIdepartmentinyourcompany,UpNetTechnologiesmayprovidetheideal
solutionforyourbusiness.UpNetTechnologieshaspricingoptionsforanysizebusinessandstartup
costsbeginningat$200.UpNetTechnologieswillofferadedicatedaccountteamtoassistwithany
questionsandmakethetransitionassmoothaspossible.