DV Step 3: If no vendor exists, create a new vendor record

On This Page:  Before You Begin | Obtain Tax Documentation From the Vendor | Create a DV Vendor Record in KFS | Submit the DV Vendor Paperwork | Optional:  Submit ACH Authorization Forms

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Before You Begin

When creating a new vendor record, consider the relationship your department will have with the vendor in the future. For example, if you are only refunding a vendor for an out of pocket expense, create a refund vendor (RV). However, if you know in the future you will be compensating the vendor for services, create a disbursement voucher vendor (DV) or purchase order vendor (PO) based on the long-term need.

Note:  This page walks through the steps necessary to create a DV vendor record for a domestic vendor. Follow the links below for information related to other vendor setups.

The process of creating a DV vendor record in KFS for a domestic vendor requires three steps:

  1. Obtain tax documentation from the vendor.
  2. Create and submit the DV vendor record in KFS.
  3. Submit the DV vendor paperwork.
  4. Optional:  submit ACH authorization forms

Begin the vendor creation process as soon as possible! It can take between 1 day and 10 weeks to establish a vendor record document and issue payment.


Obtain Tax Documentation From the Vendor

Before initiating the vendor record in KFS, request the appropriate tax documentation from the vendor. When working with domestic vendors, you will request a completed and signed W-9.

A substitute, fillable PDF W-9 tax form is available through University Tax Services. University Tax also provides guidance for completing the form. The W-9 must be completed by the vendor, not the department. A standard W-9 form, available on the IRS website, may also be used. 

Remote vendors can share their completed W-9 tax form with you via Slashtmp. Refer to the Knowledge Base for more information regarding Slashtmp. Tax documentation should NEVER be sent over regular email as it is not secure.


Create a DV Vendor Record in KFS

Always search for an existing vendor record before creating a new record! If possible, search for an existing vendor record using both name and Tax Identification Number (TIN) lookups, such as a Social Security number (SSN) or Federal Employer Identification Number (FEIN), before creating a new vendor record. 

Login to KFS and select the Vendor module from the left hand menu, then select Vendor under the Reference section.

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On the Vendor lookup page, click the Create New button in the upper right hand corner of the screen.

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Fill in the fields required for DV vendor setup. Refer to the Vendor Creation Guide from Accounts Payable when setting up the vendor. This guide walks step-by-step through each field on the vendor document.

One of the following types of vendor addresses must be entered on the vendor record:

  • Remit:  where to send the payment. This may be the address listed on the vendor’s W-9 or could be a different address.
  • Tax:  where to send tax documentation, such as a 1099-MISC for domestic vendors. This should be the address listed on the vendor’s W-9.

The Quote and Return Goods address types are not used at IU.

Upon submission of the new vendor record, you will see the vendor coversheet. Print or save the coversheet immediately. You cannot return to it later.

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Submit the DV Vendor Paperwork

The following paperwork must be sent to the DV Vendor Approval Work Group before the DV vendor record can be established:

  • Vendor coversheet from KFS
  • W-9

Before sending the information to the DV Vendor Approval Work Group, write the KFS document number on both the vendor coversheet and W-9 form. The document number must be written conspicuously, or on in an obvious place, on both documents.

The document number is available in the upper right hand corner of the vendor document in KFS.

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Below are examples of writing the KFS document number on the vendor coversheet and W-9 form.

Vendor coversheet:

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W-9 form:

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Instructions for submitting vendor documents to Accounts Payable are available on the vendor coversheet. Documents may be sent via secure fax or via Slashtmp.

The DV Vendor Approval Work Group in Accounts Payable will review the submitted documents and approve the DV vendor record. You will receive and FYI in your Action List when the vendor record is approved and ready to use.

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Optional:  Submit ACH Authorization Forms

Automated Clearing House (ACH) authorization forms can be submitted at any time and are not required to establish a vendor record. ACH, also known as direct deposit, can be significantly more convenient than a paper check for both the vendor and IU.

Do not send ACH authorization forms to the DV Vendor Approval Work Group. This process is handled by a separate group within Accounts Payable. Contact fmsaphlp@indiana.edu with questions regarding ACH authorization forms.