Accounts Payable
Summary
• EFT is HCR ManorCare’s expected method of payment.
• EDI is HCR ManorCare’s preferred method of invoicing.
• All new vendors must be approved by Corporate Purchasing prior to purchase of any
products or services.
• All potential new vendors must include a completed W‐9 form and an EFT enrollment
form with voided check in order for the vendor to be set up.
• All W‐9s that are received with a nine‐digit Social Security number must provide two
business references not affiliated with HCR ManorCare (name, address and phone
number).
• An updated W‐9/EFT form is required for any changes made to an existing vendor’s
reporting information.
• All invoices must have the vendor name, vendor remit address, description of
service/product, invoice number, invoice date, invoice amount, HCR ManorCare’s facility
business unit number, name and address.
• Vendor terms are 45 days for product vendors and 35 days for service vendors.
“Payment Term” is the number of days from “invoice date” to “payment date.”
• All inquiries regarding the status of payment should be directed to the facility where the
service was performed or product purchased.
For more detailed information regarding HCR ManorCare’s Accounts Payable process,
including answers to Frequently Asked Questions (FAQs), please see below.
Accounts Payable Information
HCR ManorCare’s corporate Accounts Payable is centralized in Toledo, Ohio. Each year, this department processes more than 1 million invoices, working closely with our business units to pay suppliers on time. AP continuously strives to improve its customer service and to work closely with vendors to resolve payment issues. For additional information, please see below, including FAQs.Payment Type
EFT is HCR ManorCare’s expected method of payment for all payments processed through the Accounts Payable system. The expectation is that all vendors are 100 percent compliant with our EFT program, which offers the benefits of timely payments, less paperwork, improved cash flow and convenience.New Vendor Request
All vendors must be approved by Corporate Purchasing prior to the purchase of any products or services. Failure to do so will result in non‐payment of invoices. As part of this request, all potential new vendors must include a completed W‐9 form and an EFT enrollment form with voided check in order to set up the vendor. The W‐9 and EFT forms must be completed and signed by the vendor. Both of these forms are included on the vendor page. All vendor requests submitted without either of these two forms will be returned, and the vendor will not be set up. HCR ManorCare’s Vice President of Purchasing will review and approve all new product and service vendors prior to the facility placing an order. After the Purchasing Department has accepted the vendor, the vendor’s taxpayer name and Tax Identification Number (federal ID or Social Security number) will be matched with IRS records. Vendors will not be set up until this information matches the IRS records. Typically, vendors will be set up within 10 business days of receiving the correct information, completed W‐9 form and completed EFT enrollment form. All credit applications (if required by the vendor) should be sent to Corporate Purchasing for completion.
Purchase Service and Purchase Labor Vendors
All service/labor vendors must be processed and paid directly from the Corporate AP system (payments are not generated at the facilities). The IRS has become stricter on the fine line that separates when a vendor qualifies as a “Purchase Service” vendor or as an “Employee.” If a vendor does not meet the IRS test qualifying it as a Purchase Service vendor, HCR ManorCare will be fined. To ensure that HCR ManorCare has a “no risk” system in place, all W‐9s that are received with a nine‐digit Social Security number must have two business references provided (name, address and phone number). These references cannot be affiliated with HCR ManorCare and will be kept on file at the corporate office and furnished to the IRS when HCR ManorCare is audited.
If a vendor completes a W‐9 form with a nine‐digit Social Security number and cannot furnish at least two business references or other proof of legitimacy, or fails the independent contractor test, the vendor cannot be set up in the Accounts Payable System as a Purchase Service vendor. This individual no longer has the status of “vendor” and must be treated as an employee, with all applicable taxes deducted from his/her pay. Existing vendors’ invoices must meet the requirements stated above or the invoice cannot be processed. All requests for payment must be through the vendor’s formal invoice, prepared by the vendor.
Existing Vendor Updates
An updated W‐9 form is required for any changes made to an existing vendor’s reporting information. This includes vendor name, identification number, address, etc. This form is a requirement set forth by the IRS per its Publication 1679. Failure to comply with the IRS may result in fines for both parties. An updated EFT form is also required for any banking changes made by the vendor.
Vendor Terms and Conditions of Payment
Standard vendor payment terms are established by HCR ManorCare to maintain a balance between cash inflows and outflows; create and sustain clear relations with vendors; and to allow for efficient, cost‐ effective processing. Periodically, standard payment terms are reviewed and confirmed or adjusted to better reflect our current operating environment. The standard payment terms range from 35 days to 45 days for all new vendors. “Payment Term” is the number of days from “invoice date” to “payment date.” All invoice dates must be after goods have been received and/or services have been provided. Predated invoices will be rejected or terms will be extended to conform to the company standard. The upfront establishment of clear payment practices will help ensure positive vendor relations. The standard terms are not negotiable and will be used for all payments regardless of vendor requests or terms per invoice. If extenuating circumstances warrant an exception to the standard term (for example, the vendor is offering a substantial early payment discount), refer the request to the Accounts Payable Department in Toledo ( apvendorinquiries@hcr‐manorcare.com ) Please include a detailed explanation for the
exception request. If the exception request is granted, future purchases will be paid according to the new term. Payments for any previous purchases/invoices will be paid based on the standard term.
Accounts Payable FAQs
What do I need to do to ensure prompt payment of my invoices? In order to get paid timely, all vendor invoices must have the following on each invoice:Vendor Name Facility Business Unit Number Vendor Remit Address Facility Name Description of Service/Product Facility Address Invoice Date Invoice Number Invoice Amount Whom do I contact regarding payment status? All inquiries regarding the status of payment should be directed to the facility where the service was performed or product purchased. Whom do I contact with invoice/payment issues or payment remittance? All inquiries for invoice/payment issues or payment remittance should be directed to AP Vendor Inquiries ( apvendorinquiries@hcr‐manorcare.com ), and should include as much detail as possible, including vendor name, vendor number, invoice number, invoice date and invoice amount. Please allow a response period of 24 hours. How do I submit basic changes to my company’s data? Basic changes to your company information (i.e. new address, banking information or contact numbers) can be submitted directly to the attention of AP Vendor Inquiries ( apvendorinquiries@hcr‐ manorcare.com ). All vendor information changes require an updated W‐9 and/or updated EFT form with an attached voided check. What if I was sent a payment in error? • If a check was received in error, or for the wrong amount, return the uncashed check to the address below. • If the check has been cashed in error, submit a check for the equivalent amount, payable to HCR ManorCare, and return to the address below. Please reference the original check number. • If an EFT transfer was received in error, or in the wrong amount, please submit a check for the equivalent amount, made payable to HCR ManorCare, and return to the address below.
HCR ManorCare’s Corporate Address: HCR ManorCare Attn: AP 7th floor 333 N. Summit St Toledo, Ohio 43604
Electronic Funds Transfer (EFT)
What benefits does electronic payment offer me? HCR ManorCare sends payment electronically directly from our bank to your vendor bank account. EFT runs will be processed on a weekly basis and payment transmitted accordingly. This results in on‐time payments, less paperwork and improved cash flow due to a faster secure payment. This is the preferred method of payment for HCR ManorCare. How do I get set up on EFT? If you have a bank account, HCR ManorCare can transmit the funds electronically to you. All you need to do is complete the EFT enrollment form, attach a voided check and submit to HCR ManorCare for setup. Will this cost me anything? No, there are no costs to the vendor. How will I know what HCR ManorCare is paying me for? Each week when the EFT payments are generated, you will receive an e‐mail with an Excel remittance attached. The remittance will provide facility name and number, invoice number, invoice date, invoice amount, payment ID and payment amount. Please be sure that you include a valid e‐mail address on your EFT enrollment form. It will take approximately 48 hours before the funds are in your bank account. What if my banking information changes? HCR ManorCare will continue to use the banking information on file until a new EFT enrollment form (with a voided check) is received. Once the completed form is received, it typically will take five business days to verify the banking change and update the system. What if my remittance e‐mail changes?
If your e‐mail changes, contact AP Vendor Inquiries ( apvendorinquiries@hcr‐manorcare.com ). Please include your vendor name and vendor number that will be affected by this e‐mail change.
Electronic Data Interchange (EDI)
EDI has proven to be the most efficient way of conducting business with our vendors by electronically sending and receiving core business documents. This systematic process of electronically exchanging key information adds value and improved functionality for both HCR ManorCare and our vendors. This enables us to improve customer service, lower expenses and streamline business processes by eliminating manual data entry. We expect our vendors to begin exchanging EDI transactions as soon they are assigned a specific vendor number. The process of EDI is accomplished by having business documents translated into EDI 810 format, version 4010. In order to conform to our EDI standards, each vendor must: • Use a unique invoice numbering system for all invoices. • Send all invoices via EDI. • Provide the ability to cancel a particular invoice and re‐bill in the next EDI feed.
