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MESSAGE 082410-01
DATE August 24, 2010
AUTHOR Accounts Payable
Subject Tips for Entering Vendors in SMART

Message Text:

An improperly entered vendor slows the vendor approval process, and delays the ability of the agency to pay the vendor.  Here are some tips to ensure the update processes efficiently:

Entry:
Data in all fields should be entered in ALL CAPS for consistency.

Duplicate Vendors: 
Before entering a “new vendor,” confirm it does not exist in the Statewide Management, Accounting and Reporting Tool. Navigate to:  Vendors>Vendor Information>Add/Update>Review Vendors.  Enter the Withholding Tax ID.  Click search.   If no vendors are found, then add the vendor. 

Identifying Information Tab, Classification = HCM:  
This indicates that this record is a vendor used by Department of Administration Payroll for remittance purposes. Vendors with this classification cannot be changed, and the default payment handling code indicates that all checks will be returned to payroll.  

If you need to use another address, please search for this vendor to see if they exist under a different vendor number that does not have HCM as the vendor classification; if it does not exist, then add a new vendor number with the new address.

If you choose to use this vendor for your payment,  you must change the payment handling code on the payment tab of the voucher to either a valid payment handling code specifically designated for your business unit or one of the payment handling codes available for all business units (e.g., CM indicating Central Mail).

Identifying Information Tab, Vendor Short Name:
Use all 10 characters.  For individuals, format is last name comma first name with no spaces.
If a vendor is a DBA (doing business as), enter that in the Vendor Name 2 (and in the Vendor Short Name)
Check the Witholding box for all USA- based vendors, except non-legal corporations and non-medical corporations.

Address Tab:
Confirm the address is valid at http://zip4.usps.com/zip4/.   Please enter the address as formatted by the site.  If your address does not pass this site it will generally also be inactivated by First Logic. It is the agency’s responsibility to provide a postal correct address, not the Division of Accounts and Reports (A&R). 
Vendor Address Description should be:   MAIN, CORP ADDR, etc., not just a repeat of the address.

Effective date for new records should be 01/01/1901.  If the address changes, a new effective dated row should be added with the effective date of the change.

The first record in the Phone Information should identify the payment location for the address.  The “Type” is “.Pymnt Loc”; in the Prefix column enter the 3-digit location to which the address should be tied, e.g., “001”. Additional records can be added for the vendor phone, and fax.

Location Tab:
Description should be either System Check or ACH ****1234 (where 1234 is the last 4 digits of the bank account.

Effective date for new records should be 01/01/1901.  If there is a change to the location, (bank account change), a new effective-dated row should be added with the effective date of the change rather than a new location.  A&R staff should enter ALL bank account changes.

1099 Options (accessed via the 1099 hyperlink from the location tab):  For all vendors located in the USA, except non-legal corporations and non-medical corporations, the first line of the 1099 area - 1099 Information - must be completed. Choose the proper Type of 1099, based on the type of payment this vendor normally receives.

Choose the 1099 Status as appropriate.  You may have to add multiple types: 
01 Rent (if you pay rent to this vendor)
02 Royalties
03 Prizes, Awards, etc.
06 Medical and Health Care Payments
07 Non-Employee Compensation
14 Gross Attorney Proceeds (07 should be set up as the default):  this is for payments co-payable to the claimant and the attorney.

For further guidance on determining the proper 1099 type see page 6 and 7 of the following job aid http://www.da.ks.gov/smart/Training/JobAid_Create_1099Voucher_Online_20100630.doc.

For the second line under 1099 options – 1099 Reporting Information - the TIN type is F for Federal Employer Identification Number, S for Social Security Number.


 

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