Vendors

Want to speed up the Vendor Set-Up Process? (3/26/09)

Here's how to avoid the speed bumps: 

1. Approximately 40% of the Vendor Authorization Forms (VAF) #1679 submitted do not have the "Requested By" section at the bottom of the page completed. This section is critical for a vendor set up because it is the fax/email transmittal section of the VAF. If this information is not completed, Vendor Maintenance does not know who to contact if there is a question regarding the form. Most importantly we do not know who to send the vendor number to if this information is missing. Do not submit a separate fax cover sheet with the VAF form because the cover sheet may get separated and it takes up space in ImageNow.
   
   
2. Handwritten forms are extremely difficult to read and can result in incorrect vendor information. Please type the form.
   
   
3. If the business type is an Individual/Sole Proprietor (US Citizen), Employee, or Student, the Independent Contractor Authorization Form must be completed and submitted with the VAF.
   
   
4. Under the Purchase Order section of the form only the vendor name and contact information should be listed. This information should always be the vendor's information, not the employee's.
   
   
5. An IRS W9 is required for all new vendor set-ups excluding foreign nonresident and foreign entities.
   
   
6. The Description of Services/Reason for Payment is a required field.

We suggest that the department obtains the information from the vendor and completes the form. The vendor only needs to complete and sign the IRS W9 form.

The current Vendor Authorization form and instructions should be obtained from the forms library. Questions regarding vendor set up can be sent to disbsvcs@umn.edu.

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Effective immediately, the forms for establishing vendors or making changes to existing vendors have changed. (1/30/09)

The VAF is now one page long. Departments can send it to the vendor to complete or they can take the information over the phone and complete the form themselves. Departments should remember to provide the department contact information at the bottom of the form. All forms are available in the U-Wide Forms Library.  The related procedures have been updated and are available in the U-Wide Policy Library.

For new vendors, departments are required to send vendors a W9 to complete. The completed and signed W9 should be submitted along with the VAF. If the new vendor is a Sole Proprietor or Individual, departments are also required to complete and submit the Independent Contractor Authorization form along with the VAF and W9.

For changes to existing vendors, departments complete the appropriate fields on the VAF. Unless there is a vendor name or tax ID change, a W9 is not required. The Independent Contractor Authorization form is not needed for changes.

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Vendor Authorization Form (VAF) 1679 Announcement (3/10/09)

Instructions for completing the VAF, a PDF, and an Excel version are now available in the forms library.

The latest version of Adobe Acrobat Pro provides a solution to the problem of not being able to save the VAF PDF form. The University has obtained subsidized licenses to this version of the software. The instructions on purchasing and downloading the software can be found here.

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Does a foreign vendor need a vendor number in order to be paid and if so, what forms are required?

Yes they will need a vendor number. Only the Vendor Authorization form is needed for a foreign vendor.

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Vendor not open for ordering

Vendor not open for ordering. Two possible causes identified at this time:

1. It could mean that items purchased from the vendor do not require a PO (click link for list). The department then codes the invoice and forwards it to the Cluster for processing.
   
   
2. It could mean the vendor did not complete the Vendor Authorization form, then the department must send that form to the vendor, the vendor completes it and returns it to the department to review, and the department faxes it to Vendor Maintenance in Disbursement Services at fax number 612-624-9562.

If a vendor is not open for ordering, follow this checklist first.

Determine if the item or service being purchased requires a PO.

If the item is on the "Non-PO Purchases Allowed" list, and the vendor is in PeopleSoft Financials with the "not open for ordering" box checked, then you do not need to send the vendor set up form to the vendor.The invoice/voucher can be paid, with the box checked (you just can't issue POs), put the account string and the vendor number on the invoice and send it to your Cluster for processing.

If the item being purchased requires a PO and the "not opened for ordering" box is checked, you must send the Vendor Authorization Form to the vendor and return the completed form to Disbursement Services. Disbursement Services will set up/complete the vendor record and open the vendor for ordering.

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I'm looking at a vendor record summary page and it lists an address I expect as the remit-to address. However, that address is not listed as an option on the payables page. How do I get that address to appear as a remit-to option?

Resolution: Navigate to: Menu > Vendors > Vendor Information > Add/Update > Vendor

Search for the vendor in question. The 'Remit To' that shows up on the summary page comes from the location tab. It is the location that is set as the default. Go to the Location tab and click on 'View All' (in the blue/darker colored bar labeled 'Location'). You will see the address that is the default checked. You then can click on the payables link for the address and see the address sequence number.

Click here for a PDF file showing screen shots of the steps above.

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A department needs to complete the Vendor Authorization and Substitute W9 form for the human subject payments for an individual as the payments will be for more than $600. Once set up, will the person remain set up in PeopleSoft Financials with a vendor code?

Yes, the vendor code will remain in PeopleSoft Financials.

Will vendors ever be purged from PeopleSoft Financials for inactivity? If a vendor is purged, would the W9 form need to be done again?

Vendors without activity will likely be purged at some time. At this time we do not have any scheduled plans for removal.

Is the signature on the W9 part of the form only good for one year?

The IRS does not require an annual solicitation of W9 information. W9s need to be updated when the vendor's information changes (tax ID, name, type of business, etc.).

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