A 2009 presentation about the benefits of cleansing your master vendor file and tips for keeping your file clean.

1. On-Demand Vendor File Management April 21, 2009

2. Sherry DePew, VP Product Management, LAVANTE (former AP Director, BOISE CASCADE) Janna Locke, Business Development Director, LAVANTE With special guest: Sandy Champion, AP Manager, TRANSIT MIX Workshop Presenters

3. Your Vendor Master File: A Strategic Resource Key Goals of Vendor File Management Common Vendor File Issues A Proactive Vendor Management Program Industry Best Practices AGENDA

5. Ownership belongs in Accounts Payable

6. Many disbursements are made to payees that typically do not have involvement with purchasingTax Payments Garnishments Employee Reimbursements Donations Customer Refunds VENDOR MASTER FILE: A Strategic Resource

8. Eliminating duplicate payments, strategic price negotiations and accurate financial reporting are impossible without a clean vendor master file

9. An accurate Vendor Master File strengthens your vendor relationships by reducing mistakes and vendor correspondenceVENDOR MASTER FILE:A Strategic Resource

11. Support correct preparation of IRS-1099s

12. Provide accurate reporting of expenditures, including tracking diversity spend

13. Comply with laws and regulations, especially meet compliance reporting requirements

14. Identify and reduce fraudulent vendors

15. Reduce duplicate payments

16. Know your vendors (esp. parents/subsidiaries; WMBs)

17. Communicate effectively with your vendor populationVENDOR FILE MANAGEMENT:Key Goals

19. Non-Resident Alien and 1042S

20. Gramm Leach Bliley Privacy Act

21. Health Insurance Portability & Accountability Act (HIPAA)

22. Office of Foreign Assets Control (OFAC)

23. Foreign Terrorist Organizations (FTO)

24. Bureau of Industry and Security Lists

25. Patriot Act

26. Sarbanes Oxley

28. The majority of duplicate payments today are caused by related suppliers and purchasing card transactions.

29. Stats show that 7% of the vendor population change their name, affiliation or standing on an annual basis.

30. If duplicate vendors are eliminated, over 75% of duplicate payments can also be eliminated.Reduce Duplicate Payments

32. JW Hotels

33. Renaissance

34. Courtyard

35. Residence Inn

36. Fairfield Inn

37. TownePlace Suites

38. SpringHill Suites

39. Ritz-Carlton

40. ExecuStay

41. Executive ApartmentsKNOW YOUR VENDORS:How are these related?

44. Missing or Incorrect 1099 Categories

45. Names Inconsistent with Tax IDs

46. Missing or incorrect contact info

47. Lack of controls around vendor set up

48. Vendors tied to inventory items with low turn rates

49. 35%-65% of “active” vendors are one-time vendors

50. Limited resources to manage the vendor master fileCommon Vendor File Issues

52. Identify and collect ALL relevant documentation

53. Identify ALL vendor files and data sources including those used for e-procurement, e-payment and p-cards

55. Federal Government Departments and Agencies

56. States

57. Local Governments

58. Postal Service

59. Garnishments

60. Petty Cash

62. Impact of rules on other files/tables

63. Which to keep

64. Which to drop

65. Which to merge

66. Identify parents and subsidiaries across the vendor file then link them together.

67. Establish a standardized processes for naming and numbering all vendors.

69. Review and revise procedures, guidelines and documentation, as required

70. Train and/or re-train staff, as required

71. Utilize next generation tools to prevent duplicates

72. Approach Vendor File Management as a process, not a project, to insure long-term success

74. Verify Name and TIN against IRS database

75. OFAC and FTO Checks

76. Check vendors against OFAC / FTO list and other lists

77. Utilize 3rd Party Databases

78. Add D&B Numbers

79. Add SIC or NAICS codes

80. Add Credit Information

81. Obtain W-9 or Substitute

82. Obtain Minority Owned Business, Women Owned Business status, etc.A Proactive Vendor Management ProgramStep 4: Enhance

84. Restrict adding and updating

85. Review all adds and changes

86. Secure a W-9 or substitute

87. Purge and cleanse annually

88. Use standard rules for names and numbers

89. Use USPS and UPU rules for addresses

90. Capture phone, fax number and email

91. Involve purchasing for any new vendor who will be issued a purchase orderVENDOR MASTER FILE:Best Practices

92. THANK YOU! If you would like to see a live demo of Lavante’s On-Demand Vendor File Management On-Demand Strategic Profit Recovery and Vendor Self-Service Portal Visit the Lavante Booth or contact: Janna.Locke@lavante.com Contact Information