ADMINISTRATIVE PROCEDURE

Requesting a New Supplier or Changing an Existing Supplier

Purpose

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

Supplier Requirements

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

Forms/Definition

Form NameForm #Definition
Supplier Authorization Form
(VAF)
UM 1679 Form used by the departments to gather all the necessary information from the supplier so the supplier can be properly set up in EFS.
W9 IRS IRS form to collect tax ID from supplier used to determine the correct tax reporting status for the supplier.
W8 IRS IRS form to collect tax information from a foreign person or organization used to determine the correct tax reporting status for the supplier.
Independent Contractor Authorization Form
(IC)
UM 1650 Internal data form required when the supplier 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 supplier is set up for the correct tax reporting.

Responsibilities for Supplier Request

GroupTask
Department
  • Obtains the information from supplier and types the data into the Supplier Authorization Form.
  • The UM 1679 (VAF) form must be complete including the description of services.
  • Sends W9 or W8 IRS form to supplier to complete for new supplier 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 supplier set up.
  • Fax all completed forms together to Supplier Maintenance at 612-624-9562 or email to disbsvcs@umn.edu
Supplier
  • Completes W9 or W8 IRS form and return to department.
Supplier Maintenance
  • Set up or change supplier in PeopleSoft
  • Searches external databases for supplier reporting status.
  • Communicate the Supplier number or change to department when completed.

Procedure:

Steps for searching for an existing supplier:

Search for supplier by name and address in PeopleSoft: Suppliers > Supplier Information > Review Supplier > Supplier Name

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

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

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

Type of ChangeAction
Address change or add a new address (order, remit or 1099) Type the full address in the appropriate section of the VAF
Open a supplier for ordering status If an existing supplier 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 supplier name, supplier 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 supplier information in the PO section of the VAF.
Supplier name change Submit a new W9 for the supplier along with a VAF form indicating a name change. Supplier Maintenance will review the documents submitted and either establish a new supplier number or change the existing supplier name.
Supplier tax status or tax ID change Submit a new W9 for the supplier along with a VAF form indicating the change of tax information. Supplier Maintenance will review the documents submitted and either establish a new supplier number or change the existing supplier 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 supplier prior to requesting a new supplier set up.
  • Type the supplier information on the supplier 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 supplier requests. This information is needed to properly set up the tax reporting on the supplier 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 supplier form. The requester must complete the bottom section of the form including their email address. This information is needed to send the supplier number back to the requester. The supplier should never complete this section.
  • Each supplier request should be submitted individually with all documents attached in one submission.

Forms

Related Information

Document Feedback

Contact Information

University Policy Program

350-2 McNamara Alumni Center, Minneapolis, MN 55455

P: 612-624-8081

policy@umn.edu

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