• The invoice is recorded on the account of who owes it, not who it is owed to. In other words, your invoices will be recorded on the account of the company, an owner, or an association; not on the account of a vendor, source, or occupant. (A vendor or source are the "payee", which is a different thing.)
• If an occupant somehow incurred an expense, the invoice is still not recorded on the occupant's account. For example, if a tenant did damage and owes for it, the invoice for the repair is still recorded on the owner account. (The tenant pays a charge, which goes to the owner, who pays the vendor.) When recording the tenant charge, you can certainly attach a copy of the invoice, but this is not the same as recording the invoice.
• Often when a vendor or source sends you an invoice, they do not indicate the owner or association name. Rather, they indicate the address where work was performed or service was provided. In the Find Someone box, simply enter this. A list of matching accounts will display. Select the house icon to expand and display specific matching addresses to discover who the invoice belongs to.

Enter the specifics of the provided invoice. Attach the scanned version of the original vendor invoice to have a permanent record associated with this recorded invoice. When you are done, select your notification options, and select the Add Invoice button.

Following are some features of invoices commonly asked about.

Work Orders

When an invoice is for work performed, you should have a work order for this work. Select the work order to associate it. This will create a record on the invoice, and connect the invoice to the work order. This is helpful if a vendor asks if you paid for specific work, or if your staff are confirming work has been paid for. For each work order added, you'll see options to process on the work order, depending on the specifics of that work order.

If you cannot locate the work order, likely one of the following is true:

• You are in the wrong account.
• The work was never entered as a work order.
• You have the safeguard configured to avoid paying a vendor before work is complete, and you have not marked the work order complete. This is configured in Settings > Maintenance > Preferences > Invoice Work Orders Only After "Completed" Stage.

If the invoice covers multiple work orders, select the Add button to associate another work order, then select the work order from Select Another to Add.

One-Time Payees

The one-time payee selection in the Payee field allows you to pay someone who is not recorded in your system as a vendor or source. When you have a small invoice from someone who is unlikely to ever do any work for you again or receive any additional payments from you, you can select one-time payee. Input their name, address, and contact information into the invoice. It's important to understand this option may be disallowed by your policy, work/payment context, entity type, or laws, and thus, you should be careful - or avoid it altogether and enter every payee as a profile in Harmony. A one-time payee is never permitted when the total of all of their payments in a year exceeds the minimum threshold for tax reporting. In a scenario where you paid a one-time payee, but they came back around and did more work, you can convert them to a vendor from Management > System > Transfer One-Time Payee.

Commissions

If you are paying a source their earned commissions for referred business, your policy may not require that they present you with an invoice in the same way a vendor would. However, best practice dictates that you still at least record an invoice before making payment to them. Once you have calculated their commissions from your commission reports, enter the amounts as though they had provided you an invoice. It is wise to indicate that you have generated this recorded invoice, rather than recorded it from an external source, so you don't wonder where the missing original is.

Although it's wise to have a policy that requires an invoice to be submitted for payment, sometimes there are cases where the scenario is similar for vendors. We've seen this happen when the vendor is an individual like a handyman who provides valuable work but doesn't understand business. In such a case, no matter who it is, be sure to record an invoice on your end before making any payments.

Terms/Due Date

Most often, an invoice will indicate the due date, and you should enter it as such. If no due date is indicated, or you want to calculate a due date based on your negotiated terms with the payee, use the Calculate Due Date icon beside the Due Date field. When the payee has default terms in their profile, the calculator will determine the due date based on these terms. To set a payee's negotiated Default Terms, edit their profile; it's in the Financial section.

Markups/Discounts/CAM Amount

These advanced options are described in other articles.

Bills, Splits, and Unbalanced Invoices

Each invoice represents an amount due from an account (company, owner, or association) to a payee (vendor or source). This is represented by a bill on the account, with a bill code for categorization and reporting.

In some cases, an invoice may include amounts due that should be categorized as separate bills. For example, a repair may include maintenance and capital improvements, where you wish to record the amounts separately on different financial accounts. In such a case, you may create multiple bills for the account on the same invoice. Simply enter the amount of the first bill, and if it is less than the invoice amount, you'll have the option to Add & Split. This records the invoice, and allows you to enter another bill for the remaining amount, still on the same invoice. In fact, you can have an unlimited number of individual bills on the same invoice.

When the invoice amount (or the invoice amount considering markups and discounts) matches the total of all added bills, the Split option goes away, and the invoice is fully recorded.

If you fail to add bills totalling the invoice amount, you have an unbalanced invoice. This means the amount you are taking from the account does not equal the amount you are paying to the payee. A warning will display, and you'll have to balance the invoice in order to pay it.

Approving Invoices

You can require approval for invoices, through your internal approval process, or by the owner/association the invoice belongs to.

To set invoices as requiring approval by default, turn the option On in Settings > Money > Preferences > Require Approval (By Financial Administrator or Account) Before Paying All Invoices. To set this on an individual invoice, set the option in that invoice's status.

When requiring approval, your Financial Administrator can approve any invoice, or you can request the owner/association approve the invoice through their portal or through a loginless link merged into the invoice message you send. An invoice requiring approval indicates if it is awaiting approval, internally approved, or approved by the account.

Tax Invoices

While an invoice for taxes due can be recorded individually, they are automatically generated from the Harmony tax remittance system. A tax invoice can include bills for multiple different accounts for a single payee (the tax man). As such, they cannot be manually manipulated. When a tax invoice is paid, the apportioned amount is collected from each account and aggregated into a single check to the tax man.