Frequently Asked Questions - Vendor Setup Request Form

1) Why did you change the form?

We changed the form for the following reasons:

• to simplify the form and its instructions
• to streamline the end-to-end process
• to aid in gathering additional information required for federal tax reporting purposes
• to satisfy University requirement regarding separation of duties as related to the vendor setup process
• to remove obsolete information from the old form

2) Who needs to know about the new form changes?

Yale staff that are responsible for completing Vendor Setup Request forms need to be aware of the changes. Vendor Setup Request forms are typically completed when purchasing/paying for goods and/or services from a "Vendor" (or a "College/University"), reimbursing travel and related expenses/honoraria payments for "Non-Employees", and reimbursing "Petty Cash Custodians".

3) Where can I find the new form?

Effective September 10, 2001, the new form will simply replace the old one on the QuickForms web site at http://www.yale.edu/ppdev/forms/quickforms.html or from the Forms link under Purchasing on the Policy and Procedure web site at http://www.yale.edu/ppdev/Purchase/VSR/forms.htm.

4) What's new about the Vendor Setup Request form and process?

• You must provide the correct TIN and organizational type for all vendor types.
• For Non-Employees Social Security Number is not required if only requesting substantiated reimbursements for expenses. Social Security Number is required for honoraria awards prizes and all other reportable transactions.
• An Authorizer who is someone other than the Requester must sign the form.
• A field for notes or special instructions to the VCU has been added.
• There is a new Check Request form that combines the critical fields from both the Check Request form and the Vendor Setup Request form.
• Setups of Vendors and Colleges/Universities will also require the following information:
  • Indicate whether the vendor provides goods, services, or both.
  • If applicable, include the vendor's "DBA" (Doing Business As name).
  • Include contact information as per instructions on the new form.

5) What is a TIN?

TIN is an acronym for Taxpayer Identification Number. Social Security Numbers (SSNs), International Taxpayer Identification Numbers (ITINS) and Employer Identification Numbers (EINs) are all types of TINs. Please note that a Sales Tax Identification Number is not a TIN. When obtaining a TIN and organizational type from a vendor, it is recommended that you contact the vendor's controller, accounts receivable manager or a bookkeeper for accurate information. Alternatively, you may request that the vendor complete a W-9 form to obtain this information (recommended best business practice).

6) Why are TINs important to provide?

It is necessary to tell the IRS a vendor's TIN if the vendor or the transaction is tax reportable which is frequently the case. Even for those that are not reportable, the TIN is essential for determining whether the vendor already exists in the database. Knowing the TIN will help to reduce the risk of entering duplicate vendors into the system.

7) May I still email my VSR?

Yes, we prefer that you email your VSR as an attachment to the Vendor Compliance Unit to vcu@yale.edu. You may also fax or hand deliver your VSR. If you submit your VSR by email, please note that the authorizer of the VSR must email the form as per the university requirement.

8) When should I complete a VSR?

You should complete a VSR if you need to add a vendor to the database or submit an addition/change to an existing vendor. Always ensure that a vendor (or the addition/change) does not already exist in the database before completing a VSR. To do so, use Web Query (procurement web tool requiring training and access) to look up the vendor through the Vendor Inquiry menu selection. For a review of Web Query, please go to OBOE to access the Web Query training manual at http://websrv.its.yale.edu/oboe/LearningModules/WebQuery/webquery_user_guides.htm. As a best business practice, setups for new vendors should be completed as soon as you know that: a) you need to buy or pay for goods or services from a vendor/college/university or b) you need to reimburse/pay a non-employee that is not in the database. Should you need verification of a non-employee's address, please contact Vendor Compliance at 436-4345.

9) Do I need a vendor number to process an invoice?

Yes, you must wait until the Vendor Compliance Unit has completed the setup of the VSR before submitting an invoice for payment either to Accounts Payable or through Web Invoice Payments (WIP).

10) How long will it take to process my VSR?

If the form is appropriately completed, it will take 3 business days to process it in the Vendor Compliance Unit depending on the volume of incoming VSR's. If you do not see your vendor number in Procurement Inquiry after 72 hours has elapsed, please contact Vendor Compliance at 436-4345.

11) What if I can't supply all of the required information on the VSR?

Effective September 10, 2001 and prior to January 1, 2002, if you supply an incorrect form or send a transaction to Procurement that does not have a vendor setup and one is required, you will receive a letter via email reminding you of the change in vendor setup protocol. Effective September 10, 2001, the Vendor Setup Request must be completed appropriately to ensure its setup by the VCU. The VCU will contact you if you fail to do so.

12) May I send a VSR to Accounts Payable or Purchasing?

No, you must send all VSR's to the Vendor Compliance Unit for setup.

13) Where can I see a sample of a completed form?

Click on the following link to see sample forms and accompanying scenarios: http://www.yale.edu/procurement/vcu/setup

14) Can the Requester and the Authorizer on the VSR be the same individual?

No. The new university requirement states that there must be separation of duties between the individual requesting the setup (the Requester) and the person authorizing the form (the Authorizer). Procurement Compliance will monitor this requirement and the Controller's Office will review the outcome quarterly.

15) Will the Authorizer need to sign every Vendor Setup Request whether it is for a new vendor or just a change?

No. The Authorizer will only need to authorize Vendor Setup Requests for new vendors. It is not necessary to sign Vendor Setup Requests for changes such as contact information.

16) Who is a Non-Employee?

Voluntary faculty, visitors, postdoctoral fellows, fellows of Schools and Colleges, associates, and students that are not paid wages by the University are all non-employees.

17) May I forego completing a Vendor Setup Request if I am submitting a Check Request?

Yes. This is a special exception to the rule. We have incorporated all of the required fields from the Vendor Setup Request form into the Check Request form. If you choose this method of informing the VCU of a vendor setup, please be sure to carefully read the associated Check Request procedures before processing at http://www.yale.edu/ppdev/Procedures/ap/CR/toc.htm.