Expense Payables to HQ

1. Expense Payables to HQ Transition from NWSAC November 2009

2. The Schedule • Expense Payables will transition from NWSAC to HQ on November 9. • NWSAC will still Enter the week of November 9th if they receive. • NWSAC will not Enter the week of November 16th, as invoices will be forwarded to HQ AP Expense group.

3. What’s Included? • All the same types of expenses which have been going to Tammy’s group in NWSAC: • Any non-inventory invoices except for P-Card charges (division 2 vendors). • Any re-occurring type vendors in which the invoices were going directly to NWSAC (i.e, Utilities, etc). • Expense Reports and Petty Cash Reimbursements. • P-Card back up continues to go to your P-Card administrator.

4. What Is Changing? • Expenses will no longer be entered into Branch Logons. • Expenses will be entered into a single Logon (ADMIN) in order to consolidate into one vendor file for expenses. • This will allow us to increase our buying leverage including additional P-Card Rebates. • AP Expenses will only be entered by one group, which will provide for more consistent review of expenses and G/L Coding.

5. What Is Changing? • Because a single payables logon is being utilized, branches will no longer have access to invoice & payment information in API. • This is a BIG change. • These will be visible on your Loan Balance/Expense Analysis reports as a Journal Source of HQP. • Regional Accounting Office will have access to Inquire within ADMIN logon.

6. What Is Changing? • AP Entry of expenses will no longer be allowed at the branch level. • All AP expenses need to be sent to Centralized AP Expense group: • Reduce risk of duplicate payment • Proper Review of Expenses • Consistent and Proper G/L coding

7. What’s the Process? • Invoices need to be signed or initialed by the appropriate branch manager or associate and location number(s) to be charged clearly indicated. • G/L coding will be done by the HQ AP Expense group. • Invoices can be scanned, faxed or mailed. • Scanned and E-Mailed is the preferred method. • Associate Expense Reports and Petty Cash Reimbursements can now be scanned or faxed also. • After invoices are e-mailed or faxed, they should be filed locally and retained for 6 months. • AP Expenses should be reviewed, coded and entered within 3 – 4 business days.

8. Where and How to Send • Scanned invoices sent to PAYME@ferguson.com • FAXed invoices sent to (757) 989-2510, Attn: Accts Payable • Mailed invoices sent to FEI c/o HQ Accounts Payable PO Box 2520 Newport News, VA 23609-0520 • Overnight invoices sent to FEI c/o HQ Accounts Payable 12500 Jefferson Avenue Newport News, VA 23602-4314

9. Additional Information • Sandy Sherrill – AP Manager • 757-989-2596 • Melissa Wright – AP Lead • 757-223-6475 • Jolene Simon – AP Lead • 757-989-2775 • Beverly Johnson – Customer Service • 757-969-4878

10. Emergency Manual Check Process • Currently, we are not anticipating any changes to the Emergency Check process. • If it does change, additional communication will be sent to all locations.

11. Other Information • Check runs will occur daily based on invoice payment terms. • Check Request E-Forms can only be used for Customer Refunds. • Only use the following: • Check Request – SAC East. • The others will be eliminated: • Angeles, NWSAC, SAC West, Garden, Ventura.

12. Other Information • All other normal SAC functions are being transferred to ESAC: • Trade AP Entry, APC, Freight Verification, Cash Receipts, CCAD • Separate communications are being sent out on those transitions. • Division 1 vendors for expenses • These will be entered in Branch Logon to avoid AP Entry in both ADMIN and Branch Logons. • Reduces risk of duplicate payment.

13. Tips and Tricks • Scan or FAX invoices daily. • Do not Scan or FAX and Mail. • Make sure that scans and FAXes are legible. • Maintain “sent” scans in a single folder for future reference. • Make sure that location numbers are clear and have appropriate approvals. • Separate P-Card invoices versus those that need to be paid. • Don’t hold invoices, especially those with short payment terms.

14. Tips and Tricks • Know the current policies and rules on allowable charges on expense reports. • Use the new Expense Report form. • Expenses that do not comply will not be reimbursed. • Expense Reports must be approved by associate’s Manager or above.

15. Associate Expense Reports • All business expenses must be supported by receipts. • Where receipt is not possible, an itemized description must be provided on the expense report. • Business Meals • Detailed and itemized receipts are required for purchases over $75. • Summary (non-itemized) receipts are acceptable for purchases between $15 and $75. • Although receipts are preferred, they are not required for purchases under $15. • Beer, wine or liquor consumed in moderation in conjunction with an evening meal is an allowable expense, however wine selections may not exceed $50 per bottle. • All expense reports should be submitted within 30 days of trip completion. • Expense Reports can now be Scanned and E-mailed or FAXed.

16. Branch Next Steps • Train / Communicate to your associates • PowerPoint will be e-mailed after webcast. • Post / Distribute the e-mail address, FAX number, mailing information and contact information. • Analyze your paper flows to avoid delays. • Get invoices to HQ timely, but only send once. • Analyze your branch approval process. • GM’s, Ops Mgr’s, Branch Mgr’s, others. • Make sure you are not causing delays within the branch. • Set up files for invoices sent to HQ for 6 months. • Make sure it is separate from P-Card back up.

17. AP Expense Payables Questions??