Add and Change Vendor Training

1. Add and Change Vendor Training Presenter: Phillip Subeldia Vendor Authorization Team: Theresa Felipe Rick Ford Robyn Shepro Tina Martin Susetta Beattie

2. Overview • Old vs. New Add Vendor Screen • Old vs. New Change Vendor Screen • Old vs. New Vendor Detail Screen • Live Examples of Add and Change Vendors • Before Adding or Changing a Vendor ... • Other PVN Types/Payments • How to read a W-9 • Vendors & 1099 Reporting • Problems with Nonprofit Vendor Set Up • Reference Material • Contact Information • Question & Answer Session • Evaluation

3. Old vs. newadd vendor screens

4. Old Add Vendor Screen New Add Vendor Screen Old vs. New Add Vendor Screen

5. New Add Vendor ScreenBusiness Type Field

6. Old vs. newCHANGE vendor screens

7. Old Change Vendor Screen New Change Vendor Screen Old vs. New Change Vendor Screen

8. Old vs. newVENDOR DETAIL screens

9. Old Vendor Detail Screen New Vendor Detail Screen Old vs. NewVendor Detail Screen

10. New Vendor Detail ScreenEDI Status Field

11. LIVE EXAMPLES OF ADD AND CHANGE VENDORS

12. BEFORE ADDING OR CHANGING A VENDOR

13. Before Adding or Changing a Vendor ... • Search by VENDOR NAME and TAX or EMP ID • IV – Vendor Inquiry (AKSAS Main Menu)

14. Before Adding or Changing a Vendor ... • Is it a 1099 reportable vendor? • It is preferred that a 1099 reportable vendor can only have one vendor record in AKSAS. • Strongly consider obtaining a W-9. • State of AK Substitute W-9 (Preferred!) • http://doa.alaska.gov/dof/forms/resource/sub_form_w9.pdf • IRS W-9 • http://www.irs.gov/pub/irs-pdf/fw9.pdf?portlet=103 • Can you use a Temporary or Generic PVN?

15. Before Adding or Changing a Vendor ... • Temporary Vendor Numbers • Used for one-time/infrequent payments. • When the account code on the warrant transaction is not 1099 reportable. • Not maintained on the Vendor Master File. • The PVN is an agency-specific, three-alpha character prefix followed by 99999, such as ADM99999 (i.e., where ADM refers to Administration).

16. Before Adding or Changing a Vendor ... • Generic Vendor Numbers • Used for 310-55 AutoPay transactions. • Used when it’s difficult to establish a PVN for a vendor and when a vendor is infrequently used. • Used with reportable or non-reportable account codes.

17. OTHER PVN TYPES/PAYMENTS

18. Other PVN Types/Payments • Fish & Game License Vendors • General Services/Lease Payments

19. Other PVN Types/Payments • Fish & Game License Vendors • PVN begins with XXX. • F&G License Vendors trump existing records. • Other agencies may use PVN to make payments. • Changes to the vendor record must go through F&G. • Contact Div. of Admin Svcs at 465-6085.

20. Other PVN Types/Payments • General Services/Lease Payments • Some vendor records may have the following in the VENDOR NOTES field: • Changes? Contact General Services at 465-2250.

21. HOW TO READ A W-9

22. IRSW-9http://www.irs.gov/formspubs/index.html?portlet=103

23. State of AK Substitute W-9http://doa.alaska.gov/dof/forms/index.html#tax

24. VENDOR RECORDS and 1099 reporting

25. Vendor Records and 1099 Reporting Two factors determine whether a payment must be reported to the IRS (i.e., 1099 reportable): • The vendor’s business type. • The type of payment to the vendor.

26. Vendor Records and 1099 Reporting • Reportable Business Types • Partnership, Sole Proprietor, Non Employee, Legal & Medical Svcs Corporations, Limited Liability Corporations (LLC) • Payment Types • Rents, services (including parts & materials), other income payments, medical and health care payments, and gross proceeds to an attorney

27. Vendor Records and 1099 Reporting • Business Type Example: LLC • AKSAS – IV Vendor Inquiry

28. Vendor Records and 1099 Reporting • Payment Type Example: AC 72112 • IE Entity and CC/LC Inquiry

29. Vendor Records and 1099 Reporting • The two factors together determine if the payment is 1099 reportable: *When the State of Alaska has paid a vendor a cumulative (statewide) taxable amount of $600 or more, a 1099-MISC is then issued by January 31st.

30. Vendor Records and 1099 Reporting • 1099-MISC Example:

31. Vendor Records and 1099 Reporting • Other notes to ponder: • Vendor Legal Name MUST match the Tax ID. • If not, the vendor receives a B-Notice. • Vendors can receive two B-Notices: • First B Notice • Second B Notice • VENDOR NOTES field: • IRS 20XX BAD TIN-DOA FINANCE MUST REC W9 • Please obtain W-9 from vendor and email the 1099 Team (doa.dof.1099.support@alaska.gov)

32. PROBLEMS WITH NONPROFIT VENDOR SET UP

33. Problems with Nonprofit Vendor Set Up • Some businesses may say they are non-profit, but in fact they have never completed the proper paperwork with the IRS. • Prior to making payments to non-profits and setting up a vendor record, check out the following IRS links ...

34. Problems with Nonprofit Vendor Set Up • List of nonprofits according to the IRS: • http://www.irs.gov/taxstats/charitablestats/article/0,,id=97186,00.html • List of nonprofits who lost their tax-exempt status according to the IRS: • http://www.irs.gov/charities/article/0,,id=240099,00.html • If vendor is not on either list, ask vendor to provide IRS paperwork. Provide paperwork to Division of Finance: • Email: doa.dof.vendor.auth@alaska.gov • Fax: 907-465-3798

35. REFERENCE MATERIAL

36. Reference Material • Accounting Procedures Manual Section 10: Vendors http://doa.alaska.gov/dof/manuals/apm/index.html#fin_10 • Overview—Everyone should read • For the new Add, Change, and Vendor Detail screens: • Add Vendor • Change Vendor • Vendor Detail • New Vendor Quick Reference (Print!) • Visual Learners: • Add and Change Vendor Screen Examples (Print!)

37. Contacts

38. Contacts • Questions or RUSH requests: • Email the Vendor Authorization Team at: doa.dof.vendor.auth@alaska.gov • Transactions authorized within: • 1 to 3 business days • RUSH requests • Use the group email • Please state WHY it is a RUSH • Don’t abuse this privilege!

39. QUESTION & ANSWER SESSION

40. Please complete the evaluation at: http://www.surveymonkey.com/s/V6SPKRF Your feedback helps us to better serve you! EVALUATION

41. THANK YOU FOR ATTENDING!