In property management, there are times where we need specific approval from an owner or association before paying an invoice on their behalf. In other cases, we may require internal review of invoices before they can be paid. This may depend on who the invoice is for, what it’s for, or how much it’s for. Thankfully, Harmony has the solutions for every imaginable scenario!
Stepping back a bit, most invoices are for work done by vendors on units or properties. These invoices for work are typically based on vendor work orders. On a work order, you have the option to require client approval before the vendor can perform the work. This can be based on the vendor’s cost estimate, your cost estimate, or the type of work to be done (like emergency repairs or code compliance compared to capital improvements). When creating the work order, the limits and authorization requirements specified in the management or community agreement display for your convenience. At any step before the work is performed, you can set the work order for client approval, and the owner or association can then approve the work from their portal, or from a loginless link in their email or text notification. When they do, the status is automatically updated and Harmony prompts you to move the work order along to complete the work.
Once you receive the invoice for the completed work, it’s time to record it for payment. However, as we referenced above, sometimes you still need client approval for payment of the invoice per the terms. (Note that you can also set negotiated payment terms with each vendor, which will set the invoice due date.) If you do this occasionally, simply add the invoice and set it as “Approval Required”. The owner or association can then approve payment through their portal, or through a loginless link in their invoice notification email or text message. Once it’s approved, you’ll be notified, and can proceed to pay according to the due date and/or your payment schedule.
If you require all invoices to be approved by the client, or through an internal review process, before paying, set the configuration parameter, and no invoice can be paid without approval.
A user designated as a Financial Administrator can also approve invoices, overriding or bypassing client approval. If your company policy is that any user can record an invoice, but each invoice requires internal review by a financial administrator before it is paid, set your configuration parameter and simply skip the client approval process by omitting the client approval merge option in notification messages. In this case, the client is not the one approving invoices, your internal admin is. If the financial admin is the one recording the invoice, they can select to mark it approved without a separate review.
Invoices clearly display when they are awaiting approval, and when they have been approved by a client or administrator. If they client requested something before the invoice is paid, this displays as well. Harmony gives you all the power to make sure your policies and procedures are enforced in the software, no matter what type of management you do.