US Entity: Validations Required to Setup A Non-US (Foreign) Vendor
April 12, 2019
If you work in a Finance, Accounting, Purchasing or Accounts Payable Department of a US Agency or Entity and are responsible for setting up vendors in your Accounting System or ERP – this blog post is for you. The information below will keep you compliant with regulatory agencies and will also ensure that you are validating that the vendor is real, and the data is not fraudulent prior to adding the vendor to the vendor master file. And that’s what we want folks – real vendors!
- Vendor Legal Name and Tax ID Validated Against Internal Revenue Service (IRS) Records
- Vendor Value Added Tax (VAT) Number against VAT Information Exchange System (VIES)
- Additional Tax Number Validations
- Vendor Legal Name against Specially Designated Nationals List (SDN) from the Office of Foreign Assets Control (OFAC)
- Vendor Address Validated against US Postal Service (US) and Google Earth
Additional Requirements If the Payment Method is ACH/Wire:
- Vendor International Bank Account Number (IBAN)
- Vendor International Business Identifier Code (BIC) or Society for Worldwide Interbank Financial Telecommunication Code (SWIFT)
- Vendor Bank Name against Specially Designated Nationals list (SDN) from the Office of Foreign Assets Control (OFAC)
Additional Requirement If You Are a Government Agency/Entity:
- Vendor Legal Name Against System For Award Management (SAM)
Additional Requirements If You are A Healthcare Organization:
- Vendor Legal Name Against Exclusion List of Office of Inspector General (OIG)
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Vendor Setup & Maintenance Additional Resources:
Vendor Validation Reference List (scroll to footer)
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Debra R Richardson, MBA, APM, CPRS
Owner, Debra R Richardson, LLC
President, Oklahoma Central Region IOFM Chapter
Accounts Payable Speaker | Consultant | Trainer
www.debrarrichardson.com | [email protected]
Debra is an accounts payable speaker, consultant, and trainer with over 20 years of experience in AP, AR, general ledger, and financial reporting for Fortune 500 companies including Verizon, General Motors and Aramark.
For the past eight years, Debra has focused on Global Vendor Maintenance, and implemented a vendor self-registration portal for 140k+ global vendors across five ERPs. In her consultancy, she focuses on internal controls and authentication to prevent fraud in the vendor master file.
Debra now focuses on protecting the vendor master file from fraud.
She hosts a weekly podcast: “Putting the AP in hAPpy”.