Vendors - Changing Information

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Scope

This procedure covers changing vendor information in the database.

System References

Vendors - Entering Additional Information [NAV5500U]

Policy

Vendor information in the database is maintained by the Vendor File/1099 Coordinator who cannot also process vouchers.

Invoices for new vendors will remain on hold until the AP Vendor File/1099 Coordinator ensures all vendor information is received and valid, and removes the payment hold.

The Prompt Payment Act (Code of Virginia, Article 2.1) requires that all state agencies pay all invoices within 30 days. Agencies must report their prompt pay status to the State Comptroller on a quarterly basis.

The University's standard payment terms:

are 30 days from receipt of a valid invoice or receipt of goods or services, whichever is later.
are always "Net 30" unless Procurement Services establishes a pre-agreed-upon contract with a vendor.
are established by the Vice President for Budget and Management in accordance with the state's Prompt Payment Act
are reflected on every payment, unless pre-agreed upon terms are established by a contract
can be changed only with the appropriate approvals
always take precedence over the terms reflected on the vendor's invoice

IRS 1099-MISC forms (1099s) are required for certain payments to individuals and partnerships, specifically:

royalty payments to individuals (of $10 or more), or to companies (of $600 or more)
rent payments (except to real estate agents)
prize or award payments
backup withholding
all attorney fees
payments to physicians and health care providers (including corporations of health professionals)
nonemployee compensation for services
payments for services greater than $600 to all vendors unless their tax status states they are exempt

Payments for which an IRS 1099-MISC form is not required include:

payments to corporations (refer to the latest IRS codes for exceptions) except for medical corporations
payments for merchandise for resale
rent paid to real estate agents
travel reimbursements paid to employees

All new vendors are placed on hold until they provide a completed IRS W-9 form or documentation of their Tax Identification Number (TIN).

Vendors must be in the vendor file to get paid.

Vendors are also called Suppliers in Integrated System documentation.

Responsibility

The Director of Procurement Services is responsible for:

ensuring that standard payment terms are used
communicating standard vendor payment terms
approving all changes and exceptions to the standard payment terms

The Accounts Payable Manager is responsible for:

approving all Vendor Maintenance forms
ensuring the accuracy of the vendor database

The AP Vendor File/1099 Coordinator is responsible for updating vendor information in the database.

Distribution

Director of Procurement Services

AP Administrator^*

AP Fellows Stipend Processor^*

AP Invoice Processor^*

AP Payment Processor^*

AP Vendor File/1099 Coordinator^*

PO Administrator^*

PO Buyer Manager^*

PO Buyer^*

PO Purchaser^*

PO Requester^*

Ownership

The Director of Procurement Services is responsible for ensuring that this document is necessary, reflects actual practice, and supports University policy.

Activity Preface

This activity is performed whenever an update to vendor information in the database is required.

The request is usually documented on a Vendor Change form and submitted by the originator (the individual requesting the change.)

Most often, changes in supplier information will involve a new address or a new contact name. The change may also involve a new remit-to address (the address to which payments are sent) and new vendor site added.

The job title Originator refers to one of the following:

PO Purchaser
PO Requester
PO Buyer Manager
PO Buyer
PO Administrator
AP Administrator
AP Fellows Stipend Processor
AP Invoice Processor
AP Payment Processor
AP Vendor File/1099 Coordinator

Originator

1. Fill out a Vendor Site Add/Update For Departments form on Procurement Services website.

2. The form automatically forwards to the AP Vendor File/1099 Coordinator.

AP Vendor File/1099 Coordinator

3. Verify the Vendor Site Add/Update For Departments form is complete.

4. When the maintenance involves an address change, verify if the new address already exists as a vendor site before adding a new site.

5. Obtain any missing information, as necessary.

Contact the Originator or the Vendor to obtain additional information.
Record the missing information on the form.

6. Update the vendor information.

Refer to Vendors - Entering Additional Information [NAV5500U].

Payables/Purchasing
N ® Suppliers ® Entry
Suppliers

End of activity.

Vendors - Changing Information: Flowchart

Effective: 05/13/09