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ADMINISTRATIVE PROCEDURE
Home : Finance : Procurement and Payment

Requesting a New Vendor or Changing an Existing Vendor

Printed on: . Please go to http://policy.umn.edu for the most current version of the Policy or related document.

Purpose

The purpose of this procedure is to define the process for requesting a new vendor or a change to an existing vendor.

Vendor Requirements

A vendor number is required for all payments except as allowed under the "Making Payments Using Single Payment Vendor Numbers" and "Utilizing University of Minnesota Bank Accounts". A Vendor Authorization Form UM1679 along with an IRS W9 or W8 is required for all new vendor requests. An Independent Contractor Checklist form UM1650 is required for all Individuals or Sole Proprietor requests. Vendor requests are verified against SAM (System for Award Management) and other reporting databases to ensure compliance with reporting requirements.

Forms/Definition

Form Name Form # Definition
Vendor Authorization Form
(VAF)
UM 1679 Form used by the departments to gather all the necessary information from the vendor so the vendor can be properly set up in EFS.
W9 IRS IRS form to collect tax ID from vendor used to determine the correct tax reporting status for the vendor.
W8 IRS IRS form to collect tax information from a foreign person or organization used to determine the correct tax reporting status for the vendor.
Independent Contractor Authorization Form
(IC)
UM 1650 Internal data form required when the vendor indicates on the W9 that their tax status is an Individual or Sole Proprietor. The form is used to determine whether an employer/employee relationship exists for employment tax purposes and to ensure that the vendor is set up for the correct tax reporting.

Responsibilities for Vendor Request

Group Task
Department
  • Obtains the information from vendor and types the data into the Vendor Authorization Form.
  • The UM 1679 (VAF) form must be complete including the description of services.
  • Sends W9 or W8 IRS form to vendor to complete for new vendor requests
  • If Sole Proprietor or Individual status is indicated on the W9 the department completes the Independent Contractor Authorization Form UM1650. This form is to be completed by the University employee requesting a new vendor set up.
  • Fax all completed forms together to Vendor Maintenance at 612-624-9562 or email to disbsvcs@umn.edu
Vendor
  • Completes W9 or W8 IRS form and return to department.
Vendor Maintenance
  • Set up or change vendor in PeopleSoft
  • Searches external databases for vendor reporting status.
  • Communicate the Vendor number or change to department when completed.

Procedure:

Steps for searching for an existing vendor:

Search for vendor by name and address in PeopleSoft: Vendors > Vendor Information > Review Vendor > Vendor Name

If vendor is not set up follow the Request a New Vendor process. If the vendor is already set up but needs to have the records changed/updated follow the procedures for Changes to an Existing Vendor. Each vendor request should be submitted individually with all documents attached in one submission.

Request a New Vendor:
  1. Obtain a completed IRS W9 or W8 form from the vendor.
  2. If the vendor record does not exist in EFS obtain the purchase order and remit to address. The University employee types the Vendor Authorization Form UM1679 including the description of services and the University contact information.
  3. If the vendor indicates that they are an Individual or Sole Proprietor on their W9 the department must complete the Independent Contractor Authorization Form UM1650 and submit with the VAF.
  4. Fax the Vendor Authorization Form, IRS W9 or W8 form and the Independent Contractor Authorization Form (when applicable) to Vendor Maintenance at 612-624-9562 or email to disbsvcs@umn.edu.
  5. Vendor Maintenance will set up the vendor in PeopleSoft.
  6. Vendor Maintenance will send the vendor number back to the requestor's email address noted on the UM1650 VAF form.
Changes or Additions to an Existing Vendor:
  1. Perform a vendor search in EFS to determine the PeopleSoft vendor number and location.
    Vendors > Vendor Information > Review Vendor > Vendor Name
  2. Determine what information needs to be changed or added. Complete the Vendor Authorization Form indicating the vendor number and the new information.
  3. If the vendor has a Tax ID or name change, request a new W9/W8 from the vendor and submit as new vendor request instead of a change.
Changes to Vendor Records

The department is to complete the Vendor Authorization Form (VAF) UM1679 by checking the box “Change”, entering the vendor number, indicating the add/change information and the University contact information.

Type of Change Action
Address change or add a new address (order, remit or 1099) Type the full address in the appropriate section of the VAF
Open a vendor for ordering status If an existing vendor is not open for ordering, a new W9 must be submitted along with a VAF form with a notation on the top of the change form to open for ordering.
Pay Lag change (University standard is 30 days). Open a ticket with University Financial Helpline at 612-624-1617 indicating the vendor name, vendor number and the new pay lag terms requested. The request must include a business justification for the change of terms. If the requested terms are not favorable to the University, the request may require Purchasing approval.
Add or change a dispatch method (University standard is Email) Indicate on the VAF the address sequence and location that the new dispatch method relates to in the description of service section of the VAF. Type the new vendor information in the PO section of the VAF.
Vendor name change Submit a new W9 for the vendor along with a VAF form indicating a name change. Vendor Maintenance will review the documents submitted and either establish a new vendor number or change the existing vendor name.
Vendor tax status or tax ID change Submit a new W9 for the vendor along with a VAF form indicating the change of tax information. Vendor Maintenance will review the documents submitted and either establish a new vendor number or change the existing vendor name.
Purchasing or Remit contact name/phone/email change or new contact information Indicate on the VAF the address sequence and location that the new dispatch method relates to in the description of service section of the VAF. Type the new contact information in the PO section of the VAF.

Guidelines

  • Obtain the complete order and remit to address information from the vendor prior to requesting a new vendor set up.
  • Type the vendor information on the vendor form. Handwritten forms are not accepted. The form is to be completed by the University employee.
  • The description of service is required for all new vendor requests. This information is needed to properly set up the tax reporting on the vendor record.
  • Do not highlight any sections of the VAF form as this impacts the quality of the image.
  • Do not submit a fax cover sheet with the vendor form. The requester must complete the bottom section of the form including their email address. This information is needed to send the vendor number back to the requester. The vendor should never complete this section.
  • Each vendor request should be submitted individually with all documents attached in one submission.

Forms

Related Information

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Last modified on October 3, 2013