VENDOR CREATION GUIDE: DV VENDOR AND REFUND VENDOR

Transcription

1 VENDOR CREATION GUIDE: DV VENDOR AND REFUND VENDOR Contents Overview... 3 About the DV Vendor Type... 3 About the Refund Vendor Type... 3 Searching For Existing Vendor and Employee Records... 4 Vendor search... 4 Employee Search... 5 Creating Disbursement Voucher (DV) Vendors in KFS... 7 Create the vendor document... 7 Description: Enter the first name and last name in the description field. Example: John Smith... 7 Vendor Name:... 7 Vendor Last Name: and Vendor First Name:... 7 Vendor Type:... 7 Is this a foreign vendor:... 7 US Tax Number:... 7 Tax Number Type:... 8 Ownership type:... 8 W-9 Received:... 8 W-9 Signed Date:... 8 W-8 Received:... 8 W-8 Signed Date:... 8 W-8 Type:... 8 Country of Incorporation/Citizenship:... 8 Optional fields regarding foreign vendors:... 8 Submit... 9 Print Fax Coversheet and Confirm Submission of Vendor Document... 9 Fax Tax Documentation to DV Vendor Workgroup... 9 Sample Entry for DV Vendor John Smith Creating a Refund Vendor in KFS GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 1 of 17

2 Create the vendor document Description: Vendor Name: Vendor Last Name: and Vendor First Name: Vendor Type: Is this a foreign vendor: US Tax Number: Ownership type: Submit Sample Entry for Refund Vendor Jane Doe Revision History GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 2 of 17

3 Overview KFS users can create vendor records for use on disbursement voucher (DV) processing in KFS. This guide provides step-by-step instructions for creating: 1. the vendor record called a DV Vendor which is supported by the submission of signed and dated W-9 documentation for U.S. vendors, or W-8 for foreign vendors, and 2. the vendor record called a Refund Vendor, which does not require the submission of tax documentation. About the DV Vendor Type The DV Vendor record type is the second-most applicable vendor type, following only the Purchase Order (PO) Vendor type. A DV Vendor type: Can be used with nearly all DV Payment Reasons, including Reimbursement for Out of Pocket Expense and Refund/Repayment to Individual or Agency o (Revolving Fund Reimbursement is the only exception) Requires the collection of tax documentation, such as the W-9 or W-8 Is the recommended vendor type when a non-employee* payee will have an ongoing business relationship with IU that will not involve POs Is recommended for a non-employee* vendor who will receive payments for goods or services that would not be paid via POs Cannot be used on POs Can be later upgraded to a PO Vendor record upon the collection of additional documentation (Vendor Information Packet provided by the Office of Procurement Services) *DV Payments made to IU employees should generally use their Employee (Non-Vendor) payee records. Some exceptions apply. See the FMS Tax (a.k.a. University Tax Services) web page Independent Contractor vs. Employee, or contact taxpayer@indiana.edu, for guidance. About the Refund Vendor Type The Refund Vendor record type is limited in applicability, but can be created quickly and easily and without the collection of a W-9/W-8. A Refund Vendor record: Can only be applied to two types of DV payments, which are non-taxable payments: o Reimbursement for Out of Pocket Expense o Refund/Repayment to Individual or Agency May be created when no DV nor PO vendor records exist for the payee, and the only types of payments IU expects to make are the two listed above Can be upgraded to a DV Vendor record upon collection of the W-9/W-8 NOTE: This procedural documentation does not address the creation of Participant Payment vendors nor Revolving Fund vendors. GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 3 of 17

4 Disbursement vouchers using payment reason Payment to Research Participant are processed to vendor record type called Participant Payment. Refer to procedural documentation Vendor Creation Guide: Participant Payment for instructions. Disbursement vouchers using payment reason Revolving Fund Reimbursement are processed to a vendor record type called Revolving Fund. Contact bankrecs@iu.edu with questions regarding the creation of this vendor type. This specific vendor type can only be created by a Custodial Fund Coordinator. Searching For Existing Vendor and Employee Records Conduct a search in KFS prior to creating a vendor record to determine whether the person or business entity already exists. Vendor search The vendor lookup is located in the Vendor section of the Purchasing Accounts Payable module in KFS, and can be used to search for non-employee vendors. Selecting the Lookup icon will return the following search input screen. GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 4 of 17

5 HINTS: Vendor Name: The wildcard asterisk * can be used in a name search. Example: *ikon*. Individual names should be entered Last Name, First Name. Example: Peterson, Ri* US Tax Number: PO Vendor records and DV Vendor records are tax-number-based. This search is useful if the FEIN or SSN is known. Foreign Tax Id: This search is useful if the Foreign Tax Id is known. Active Indicator: Searches default to both Active and Inactive records. Vendor Type: A general search is recommended (leave this field blank) to determine if the vendor record already exists since the record could exist as a Purchase Order Vendor, a Disbursement Voucher Vendor, or a Refund Vendor. If the vendor does not exist, a new vendor document can be initiated by either selecting the create new button on the search screen or by selecting the Create button next to the vendor lookup button on the module page. OR Employee Search Person lookup in the All Financial Services > Reference & Maintenance tab > System section will return employee records to confirm the use on a DV for payment reason reimbursement for out of pocket expense. NOTE: In KFS, terminated and retired individuals are not treated as employees. A vendor record must be created if the vendor record does not already exist. Financials (KFS) > All Financial Services GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 5 of 17

6 Selecting the lookup button returns the search screen below: HINTS: Principal ID = Entity ID = Employee ID The 3 ID above are identical in the case of an employee record. Principal Name The principal name is the user ID. Wildcard All KFS searches allow an asterisk as a wild card. * GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 6 of 17

7 Creating Disbursement Voucher (DV) Vendors in KFS A new vendor document is initiated to create a DV Vendor in KFS when the searches above confirm the vendor does not exist. Create the vendor document A new vendor record can be initiated if the vendor does not exist by either selecting the create new button on the search screen or by selecting the create button next to the vendor lookup button on the module page. OR Document Overview Tab Description: Enter the first name and last name in the description field. Example: John Smith General Information Tab Vendor Name: Enter the business name in this field if the vendor is a business. Vendor Last Name: and Vendor First Name: Enter the vendor last name and vendor first name in these two fields if the vendor is an individual. Corporate Information Tab Vendor Type: Select Disbursement Voucher when creating a DV vendor. Contact Procurement Services for advice regarding creating Purchase Order (PO) vendors. Please note that this Vendor Type selection will require you to complete additional fields related to tax. Is this a foreign vendor: Select No or Yes. Contact FMS Tax (taxpayer@indiana.edu) for clarification regarding foreign vendors. US Tax Number: Enter either the FEIN or SSN number accurately per the signed and dated W-9/W-8 paperwork. The tax form Request form W9 is linked here: GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 7 of 17

8 Tax Number Type: Select the type of U.S. tax number provided, as indicated on the W-9. This will either be an FEIN or an SSN. Ownership type: Select ownership type per the information provided on the signed and dated W-9/W-8 form. W-9 Received: Select Yes if creating a DV Vendor record for a U.S. person/entity. W-9 Signed Date: This field is optional, even if you have collected a W-9. W-8 Received: Select Yes if creating a DV Vendor record for a foreign person/entity. W-8 Signed Date: Required if: you answered Yes to W-8 Received. Enter the date that the W-8 was signed. W-8 Type: Required if: you answered Yes to W-8 Received. Country of Incorporation/Citizenship: Required if: you answered Yes to W-8 Received. This information is located in Box 2 on all W-8 forms. Optional fields regarding foreign vendors: GIIN Code Foreign Tax Id Date of Birth Chapter 3 Status Code Chapter 4 Status Code Detail Information Tab This data only pertains to establishing a Purchase Order vendor. This section can be skipped when creating a DV vendor. Contact Procurement Services for instruction related to creating PO vendors. New Address Tab A remit address type must be added to the DV vendor record and marked as the default address. Enter the remit per vendor s instruction for where checks are mailed; this is generally the address on the W- 9/W-8 form. The address must be added to the document via the add button. GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 8 of 17

9 Final Steps Submit Click the submit button to route the Vendor document for review approval by the FMS DV Vendor Team. Review and correct any validation errors that appear, and re-attempt to submit the document. Print Fax Coversheet and Confirm Submission of Vendor Document Immediately after clicking the submit button, a confirmation page will appear. This is a fax coversheet, which must be printed. Next, confirm that you wish to create this vendor record by selecting yes. Fax Tax Documentation to DV Vendor Workgroup Fax the cover sheet, including the document number on its face, plus the signed and dated W-9/W-8 form to to begin the DV Vendor Team review process. NOTE: Allow 3-4 business days for vendor document processing. Vendor documents must reach Final status before the corresponding vendor records can be searched and applied to Disbursement Vouchers. GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 9 of 17

10 Sample Entry for DV Vendor John Smith Here is an illustrative example for initiating DV Vendor John Smith, a U.S. person for tax-reporting purposes. Document Overview and Description: Vendor New General Information and Corporate Information: GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 10 of 17

11 Address New Address: Remember to select add after entering the address detail: View of remit address after selecting add : GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 11 of 17

12 Click submit: Print the returned page in order to add the document number to the page for submission to the FMS DV Vendor Approval Team. Once printed, selecting yes will allow routing. Selecting no will allow additional edits to the vendor document. Fax the cover sheet including the document number on its face plus the signed and dated W-9 form to to begin the DV Vendor Team review process. NOTE: Allow 3-4 business days for vendor document processing. Vendor documents must be final approved before the corresponding vendor records can be searched and applied to disbursement vouchers. GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 12 of 17

13 Creating a Refund Vendor in KFS A new vendor document can be initiated to create a Refund Vendor in KFS when a vendor confirms the vendor does not already exist, and when the initiator anticipates making only two types of DV payments: 1. Reimbursement for Out of Pocket Expense 2. Refund/Repayment to Individual or Agency These DV Payment Reasons will allow payment to vendor entities in KFS without receipt of tax documentation. NOTE: A disbursement voucher processed for these payment reasons should use a PO vendor record, a DV vendor record, or an employee record. See pages 6-8 for instructions regarding searching for vendor records and employee records. Duplicate vendor records should not be created. Create the vendor document A new vendor record can be initiated if the vendor does not exist by either selecting the create new button on the search screen or by selecting the create button next to the vendor lookup button on the module page. OR Document Overview Tab Description: Enter the first name and last name with the word refund in parenthesis. Example: Jane Doe (refund) General Information Tab Vendor Name: Enter the business name in this field if the vendor is a business. Vendor Last Name: and Vendor First Name: Enter the vendor last name and vendor first name in these two fields if the vendor is an individual. Vendor Type: Select Refund Vendor when creating a Refund vendor. Contact Procurement Services for advice regarding creating Purchase Order (PO) vendors. Is this a foreign vendor: Select No or Yes. Contact FMS Tax for clarification regarding foreign vendors. GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 13 of 17

14 US Tax Number: Tax number is not required nor expected. A DV vendor should be created if the department has the signed and dated W-9/W-8 paperwork. See the steps documented on page 9 for creating a DV vendor. Ownership type: Select ownership type per your understanding of whether an individual or a corporation is the refund vendor. Detail Information Tab This data pertains to establishing a Purchase Order vendor. This section can be skipped when creating a Refund vendor. Contact Procurement Services for instruction related to creating PO vendors. New Address Tab A remit address type must be added to the Refund vendor record and marked as the default address. Enter the remit per vendor s instruction for where checks are mailed. The address must be added to the document via the add button. Final Steps Submit Click the submit button. Review and correct any validation errors that appear, and re-attempt to submit the document. This type of Vendor (Refund) does not require review and approval. It will route directly to Final status, and the resulting Vendor record can be immediately searched and applied to a Disbursement Voucher. GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 14 of 17

15 Sample Entry for Refund Vendor Jane Doe Here is an illustrative example for initiating Refund Vendor Jane Doe, a U.S. person. Document Overview and Description Vendor New General Information and Corporate Information GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 15 of 17

16 Address New Address: Remember to select add after entering the address detail: View of remit address after selecting add : GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 16 of 17

17 Click submit The document will route final and refund vendor status will be active = yes. Revision History Date: Author: Notes: 4/4/2013 CAS, TM Create 9/16/2014 DFG Edit and revise 1/26/15 BK, JFF Edit and revise 1/26/15 TM Content and format edits 1/26/15 JFF PDF format conversion GUIDE TO CREATING DV VENDORS AND REFUND VENDORS IN KFS January 2015 Page 17 of 17