3401 PR.01 Supplier Setup and Change

Revision Date: 
April 19, 2021

Contents

1.      Overview

2.      Determine Whether the Supplier Already Exists in Workday

3.      Preparing to Create a Supplier Setup Request

4.      Creating a Supplier Setup Request

5.      Procurement Department Review of Supplier Setup Requests

6.      Accounts Payable Review and Approval of Supplier Setup Requests

7.      Requesting Changes to Existing Supplier Information

8.      Requesting Expedited Supplier Setups or Changes

1. Overview

This procedure supports Policy 3401 General Payment.  Several mechanisms for requesting the disbursement of University funds require a Supplier to be created in Workday prior to processing the disbursement request.  This procedure details the steps to follow to request that Accounts Payable (“AP”) create a new Supplier in Workday.  It also details the steps to follow to request changes to an existing Supplier’s information in Workday.

Note: to set up an active Yale student as a Supplier, please do so using the PandA (Prizes and Awards) system.  This is a streamlined and expedited alternative to using Workday directly.  For additional information, see Procedure 3401 PR.03 Disbursing Funds for Prizes, Awards, Stipends, and Fellowships.

2. Determine Whether the Supplier Already Exists in Workday

If the mechanism for requesting the disbursement of University funds requires a Supplier to be created in Workday prior to processing the disbursement request, first determine whether the Supplier already exists in the database.  To do so, run the Find Suppliers – Yale report in Workday and look for the Supplier.  Proceed as follows:

  • If the Supplier does not already exist, proceed to Section 3, below.
  • If the Supplier exists but the Supplier’s information is not correct (e.g., the existing address does not match the address you have been given), proceed to Section 7, below.
  • If the Supplier exists and the Supplier’s information is correct, proceed with the appropriate procedure for processing the request for disbursement of University funds.

3. Preparing to Create a Supplier Setup Request

Prior to creating a Supplier setup request, Requestors who have determined that a new Supplier is appropriate should gather the information described below by Supplier type.

A. Supplier is a U.S. Individual

If the Supplier is a U.S. individual, gather the following:

  • Completed form W-9 (Note: if the anticipated disbursements are for reimbursements or refunds only, this form is recommended but not required);
  • Completed Form 3401 FR.02 Supplier Payment Setup: ACH/EFT; and
  • Email address for contact purposes.

B. Supplier is a U.S. Entity

If the Supplier is a U.S. entity (e.g., company, partnership), gather the following:

  • Completed form W-9;
  • Completed Form 3401 FR.02 Supplier Payment Setup: ACH/EFT;
  • Completed Form 3401 FR.03 Supplier Contact Information Form;
  • Supplier address to which disbursements are to be sent;
  • Email address or telephone number for Supplier; and
  • If any anticipated disbursements will result from a Purchase Order with the Supplier, the email address or fax number to which Purchase Orders are to be sent.

C. Supplier is a Non-U.S. Individual

If the Supplier is a non-U.S. individual, gather the following:

  • Completed form W-8BEN (Note: if the anticipated disbursements are for refunds only, this form is recommended but not required);
  • Completed Form 3401 FR.01 Supplier Payment Setup: Wire Transfer;
  • Supplier address to which disbursements are to be sent; and
  • Email address for contact purposes.

D. Supplier is a Non-U.S. Entity

If the Supplier is a non-U.S. entity (e.g., company, partnership), gather the following:

  • Completed form W-8BEN-E;
  • Completed Form 3401 FR.01 Supplier Payment Setup: Wire Transfer;
  • Completed Form 3401 FR.03 Supplier Contact Information Form;
  • Supplier address to which disbursements are to be sent;
  • Email address or telephone number for Supplier; and
  • If any anticipated disbursements will result from a Purchase Order with the Supplier, the email address or fax number to which Purchase Orders are to be sent.

4. Creating a Supplier Setup Request

Requestors who have determined that a new Supplier is appropriate and completed the preparation steps (as detailed in Section 3, above) may create a Supplier setup request using the Create Supplier Request function in Workday.  The request Initiator is responsible for providing (and responsible for obtaining from the Requestor, if the Requestor is different than the Initiator) the following to complete the request:

  • Supplier’s name;
  • Supplier’s contact information;
  • Justification for new Supplier setup, including the following:
  • Business purpose (e.g., goods, services, reimbursement);
  • Any known departmental systems that may use the Supplier (e.g., Walker); and
  • If any anticipated disbursements will result from a Purchase Order with the Supplier, indicate such and provide the email address or fax number to which Purchase Orders are to be sent.
  • All applicable, completed documents based on Supplier type (as detailed in Section 3, above) (Note: please include each document as a separate attachment); and
  • A completed Supplier questionnaire (part of the Create Supplier Request Workday business process).

5. Procurement Department Review Supplier Setup Requests

At its discretion and based on the responses in the Supplier questionnaire, the Procurement Department (“Procurement”) selects certain setup requests for review.  Supplier setup requests not selected for Procurement review are routed to AP for review and approval (as detailed in Section 6, below).  Procurement selects setup requests for certain Suppliers that fall within a risk framework with the goal of identifying and avoiding potential purchase process problems.  Procurement’s review includes, but is not limited to:

  • The need for a new Supplier;
  • Potential Procurement policy issues with establishing the new Supplier; and
  • The Supplier’s financial situation.

If Procurement identifies questions or potential issues with the Supplier setup request, it contacts the Initiator to discuss and, as necessary, request additional information.  The Initiator is responsible for providing (and responsible for obtaining from the Requestor, if the Requestor is different than the Initiator) any additionally requested information or documentation, if possible.

If Procurement deems the setup request inappropriate or unsatisfactory, it denies the request and informs the Initiator.  If Procurement deems the setup request appropriate and satisfactory, it forwards the request to AP for review and approval.

6. Accounts Payable Review and Approval of Supplier Setup Requests

Upon receiving a submission via the Create Supplier Request function, Accounts Payable (“AP”) reviews and does the following:

  • Validates that required fields of the Create Supplier Request function are complete;
  • Validates that the Supplier is not on the restricted parties list (if the Supplier does appear on the restricted parties list, the request is forwarded to the Office for Export Controls for further review; the Office for Export Controls may approve, deny, or request additional information);
  • Reviews the attachments to validate that all appropriate forms (per Section 3, above) are included and completely filled out;
  • For Suppliers with Social Security Numbers or Tax Identification Numbers, if the provided Social Security Number or Tax Identification Number matches an existing Supplier in the Workday database, validates that the newly requested Supplier setup is for a unique Supplier and is not a duplicate; and
  • For Suppliers with Social Security Numbers or Tax Identification Numbers, validates that the provided name/number combination are valid per the Internal Revenue Service.

If the request is incomplete, requires further or clarifying information, or is unsatisfactory based on the above reviews, AP is responsible for requesting such additional information or documentation from the Initiator or denying the setup request.  The Initiator is responsible for providing any additionally requested information or documentation, if possible.

If the request is complete and satisfactory, AP approves the request and creates the new Supplier in the Workday database.

AP’s service-level agreement for Supplier setup requests provides a turnaround time of five (5) business days from receipt.  For up-to-date information on AP’s current processing times, please refer to the Yale Shared Services Daily Update.

7. Requesting Changes to Existing Supplier Information

Once a Supplier is created in the Workday database, its associated information may change over time.  If an existing Supplier’s information requires changes (e.g., name change, new address), submit a request via email to supplier.change@yale.edu.  In the email, include the following information:

  • Completed Form 3205 FR.09 Supplier Change Request; and
  • Any additional information that may be pertinent to the request.

Upon receiving the request, AP reviews the request to determine whether the information provided is sufficient.  AP responds within five business days (note, however, that this period may be extended for requests under subsections A. or B., below) of receipt according to the following options:

  • Supporting information is insufficient.  AP responds to the individual who submitted the email and indicates the required, additional information.  The individual who submitted the email is responsible for supplying AP with the required, additional information.  Once AP receives sufficient information, it proceeds to the next step (next bullet).
  • Supporting information is sufficient.  For most change requests, AP executes the change request and updates the Supplier database.  If the change request involves changes to payment terms or banking information, AP proceeds according to subsections A. and B., below.

AP’s service-level agreement for Supplier change requests provides a turnaround time of five (5) business days from receipt.  For up-to-date information on AP’s current processing times, please refer to the Yale Shared Services Daily Update.

A. Requests to Change Payment Terms

If a change request involves changes to payment terms, in addition to the above, AP routes the request to Procurement for review.  Procurement reviews the request and determines whether the requested change to payment terms is appropriate.  If Procurement determines the requested change is appropriate, it modifies the Supplier’s payment terms in the Supplier database and informs the Initiator.  If Procurement determines the requested change is not appropriate, it communicates this determination to AP and AP informs the Initiator of the determination.

B. Requests to Change Banking Information

If a change request involves changes to banking information, in addition to the above, AP (specifically, the Supplier Compliance Unit (“SCU”)) proceeds as follows:

  • If the Supplier is an individual:
    • Contacts the Initiator via email and asks three random verification questions.  If the Initiator does not answer the verification questions correctly, SCU closes the request case and notifies the Initiator that the request is denied.  If the Initiator answers all three verification questions correctly, SCU proceeds to the next step;
    • Makes the requested changes in Workday.  Once completed, the request routes to the AP Director (or designee);
    • AP Director (or designee) reviews the request, supporting documentation, and Workday data entry.  AP Director (or designee) returns requests to SCU if there are any problems or contacts the Supplier directly to verify information.  If there are no problems, AP Director (or designee) routes requests to Treasury;
    • Treasury reviews all requests to change banking information to ensure Workday data entry matches the supporting documentation.  Treasury returns requests that contain errors to SCU for correction.  Treasury approves requests that do not contain errors.
  • If the Supplier is a business entity:
    • Makes the requested changes in Workday.  Once completed, the request routes to the AP Director (or designee);
    • AP Director (or designee) reviews the request, supporting documentation, and Workday data entry.  AP Director (or designee) returns requests to SCU if there are any problems or contacts the Supplier directly to verify information.  If there are no problems, AP Director (or designee) routes requests to the Financial Support Center (“FSC”);
    • FSC contacts the Supplier’s accounts receivable department (or equivalent) to verify the banking information and confirm that the individual requesting the change is authorized to do so.  If the banking information is incorrect or the individual is not authorized, FSC closes the request case and notifies SCU.  SCU notifies the Initiator that the request is denied.  If the banking information is correct and the individual is authorized, FSC routes the request to Treasury;
    • Treasury reviews all requests to change banking information to ensure Workday data entry matches the supporting documentation.  Treasury returns requests that contain errors to SCU for correction.  Treasury approves requests that do not contain errors.

8. Requesting Expedited Supplier Setups or Changes

Under certain circumstances, it may be justified to request expedited processing of a Supplier setup or change request.  If expedited processing is justified and desired, once the request is submitted according to Section 4 (setups) or Section 7 (changes), submit a request via email to sharedservices@yale.edu and provide the following information:

  • The Supplier’s name;
  • A specification that it is a request for expedited processing;
  • An explanation for the necessity of the expedited processing (i.e., impact to the University if the request is not expedited); and
  • For changes only, the transaction number automatically assigned at the time the request is submitted.

AP reviews the request to expedite and contacts the individual who submitted the email with any questions or requests for additional information.  AP notifies the individual who submitted the email whether the request is approved or denied and, if denied, the reason for denial.  If approved, AP processes the expedited request.