Vendor / Customer Overview

Comptroller of the Commonwealth (CTR)

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Agenda

•Vendor / Customer Overview •Background •The Vendor / Customer Table (VCUST) •Searching for a Vendor / Customer •Vendor / Customer Code •Vendor / Customer Table Tour •Additional Tables for Customer Billing •Department Responsibilities

•Vendor / Customer Create (VCC) •Vendor / Customer Modification (VCM) •The Vendor / Customer Update Process •Workflow •Contractor Authorized Signatory Listing •Additional Remittance Addresses •DUNS for Federal Grants •VendorWeb •Additional Resources

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Background

Vendor / Customer relationships established in the Commonwealth are between the departments and their Vendors / Customers.

Vendors can be businesses, independent contractors, providers, other governmental entities, clients, recipients, or several of the above.

A Customer of the Commonwealth is an entity to which goods or services have been delivered in return for payment.

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The Vendor / Customer Table (VCUST)

All Vendors / Customers are recorded on the Vendor / Customer Table (VCUST) in MMARS.

All records are globally owned.

Taxpayer Identification Number (TIN) Required for Vendors and expected for Customers.

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The Vendor / Customer Table (VCUST)

Contains all primary information about Vendors / Customers

Add with a Vendor Customer Creation Document (VCC)

Modify with a Vendor Customer Modification Document (VCM)

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Navigate to VCUST

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Navigate to VCUST

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Searching for a Vendor / Customer

Search by: • Taxpayer ID Number (Vendor) - Recommended • Legal Name (Customer) • Last Name • Vendor / Customer Code

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Vendor / Customer Code

Key identifier for Vendors / Customers: Entered on MMARS transactions (Contracts, Payments, Receivables…)

12 digit code: Begins with “VC” followed by 10 numbers Created when VCC is entered

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Vendor / Customer Table Tour

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Vendor / Customer Record - General Information Sub Section

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Vendor / Customer Record - Organization Sub Section

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Vendor / Customer Record - Prenote / EFT Sub Section

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Vendor / Customer Record - Address Section

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Vendor / Customer Record - Address Information Sub Section

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Vendor / Customer Record - Contact Information Sub Section

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Vendor / Customer Record - Business Type Section

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Vendor / Customer Record - Certification Section

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Additional Tables for Customer Billing

In addition to VCUST, two other tables must be populated in order to bill a customer: • The Billing Profile Table (BPRO) must be established and Active.

• The Customer Account Options Table (CACT) table must create the link between the BPRO table and the VCUST table in order to be able to issue a bill to the customer.

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Department Responsibilities

The Office of the Comptroller relies upon Departments to submit accurate information when registering a Vendor / Customer for the first time and when making any updates to the VCUST information.

Departments must implement sufficient internal controls to verify that all Vendor / Customer information submitted to CTR is accurate and complete.

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Vendor / Customer Create (VCC)

All new Vendors / Customers are entered on the VCUST table using the Vendor Customer Create (VCC) Document.

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Vendor / Customer Create Warnings (VCC)

Before attempting to enter a VCC, perform a search of VCUST to ensure that the Vendor / Customer is not already on the system. Use TIN to search for Vendor and Legal Name for Customer.

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Vendor / Customer Create Warnings (VCC)

When creating a VCC for a Customer, begin the Document Identifier with “CUST.” Please follow the Job Aids carefully as the steps to setup a Vendor and the steps to setup a Customer are not exactly the same. Example: A VCC to set up a Customer uses three fields (Department, Unit, and Billing Profile) to link the Customer to the Billing Profile Table (BPRO).

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Vendor / Customer Create Job Aids (VCC)

Job Aids are available on the CTR Intranet site www.mass.gov/osc

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Vendor / Customer Create Job Aids (VCC)

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Vendor / Customer Create Job Aids (VCC)

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Vendor / Customer Modification VCM

Any modifications to existing Vendors / Customers are entered onto the VCUST table using the Vendor Customer Modify (VCM) Document.

The VCM document has a larger selection of sections and sub-sections for modification. This is because there may be times when only one piece of information needs to change.

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Vendor / Customer Modification Warnings (VCM)

Please carefully select the appropriate Job Aid as there are many Job Aids for the different scenarios when you would modify a Vendor or a Customer.

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Vendor / Customer Modification VCM

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Vendor / Customer Modification (VCM)

Vendor / Customer update processing is essential to accurate and timely vendor payments, customer refunds, and tax reporting. Departments are responsible for the quality and authenticity of data entered on VCC / VCM transactions. Departments are also responsible for coordinating and maintaining their Vendor / Customer relationships. This includes accepting changes only from authorized vendor personnel.

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The Vendor / Customer Update Process

Departments receive paperwork directly from an authorized Vendor / Customer. Departments input the information in MMARS consistent with the information received from the Vendor / Customer. Departments save and validate the document (VCC/VCM), using guidance provided in the Job Aids, in MMARS.

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The Vendor / Customer Update Process Continued

Departments mail originals and any additional back-up documentation to CTR for final update in MMARS.

• The VCC or VCM Doc ID must be clearly written on the top of the W-9

form.

• Incomplete or inaccurate W-9s, VCCs, and/or VCMs will be returned to the Department’s MMARS Liaison for correction and resubmission.

• Departments should refer to the Vendor / Customer Job Aids and

Policies for specific data entry information and instructions.

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Workflow

All Vendor Customer Create (VCC) and Vendor Customer Modify (VCM) Documents must be approved by the Office of the Comptroller prior to being recorded on the VCUST table.

Upon submission by the MMARS user, the document will be put onto the Worklist of the designated CTR staff-member. Reminder: Document Identifiers for VCC and VCMs for Customers should start with “CUST”.

The document will reside in a "Pending" phase on the Document Catalog until the document is approved by CTR.

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Workflow Continued

CTR will approve or reject documents within five business days upon receipt of paperwork from Department.

Departments should check the Document Catalog for approval or rejection.

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Workflow Continued

CTR Workflow review is to confirm data entry of the information from the Vendor / Customer legal forms that you – the department – confirm are complete and were submitted by an authorized person of that entity.

The Comptroller’s Office becomes the record copy keeper for all legal forms submitted.

The relationship is between the Vendor / Customer and the department, CTR does no authentication of the data when received but may perform post audit through our Quality Assurance Bureau.

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Contractor Authorized Signatory Listing

Departments are required to obtain a Contractor Authorized Signatory Listing, naming all of the individuals who are authorized to sign off on obligations on behalf of the Vendor.

A Department can use this listing to verify that the W9 for vendor registration, a W9 modification request, or the signature on the T&C or T&C HSS is legitimate and approved by an authorized signatory of the Vendor.

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Contractor Authorized Signatory Listing (cont)

If the Department is not contracting with the payee but is using an Incidental Purchase or making another type of payment, the Department must take appropriate steps to verify that the registration request (VCC) or update (VCM) is legitimate and submitted by someone authorized to make such a request. A cover letter on letterhead or a name is not sufficient; the department must personally verify with the authorized signatory.

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Contractor Authorized Signatory Listing (cont)

When a Department submits a VCC or VCM transaction, the authorized Department signatory is certifying that the document is accurate and complete and that it has verified the information in the VCC or VCM.

Departments are in the best position to verify the accuracy of Vendor / Customer information because they work directly with the Vendor / Customer and can take necessary steps to verify information.

By accepting Forms W9 and W8 and updates only from authorized signatories and verifying the signatures match the CASL Form (Contractor Authorized Signatory Listing) or other approved verification, Departments assist with reducing the risk of:

• Directing payments to the wrong payee or address • Delaying payments • Creating inaccurate tax reporting • Inadvertently allowing fraudulent payments

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Additional Remittance Addresses

Departments may process an additional remittance address for a VCUST record when a signed request is received from the requesting vendor on business stationary, or the vendor submits a Form W9 requesting an additional remittance address. The request must give the reason for an additional remittance address; for example, a different office has been designated for certain payments. To ensure that payments are not misdirected to an improper address, a Department must verify that the submission is valid by confirming that the request was submitted by an authorized signatory of the vendor.

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Additional Remittance Addresses (cont)

Special care must also be taken when a payee requests payment to be sent to a different remittance address(other than the legal address where tax reporting is made)or to another bank account to verify that the requestor is an authorized signatory of the payee, verified with contract authorized signatory form, or sufficient back up documentation.

This verification is necessary to ensure that payments are not fraudulently diverted to another address or bank account.

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DUNS for Federal Grants

The United States Office of Management and Budget (OMB) requires all Vendors that receive federal grant funds have their Dunn and Bradstreet Universal Numbering System (DUNS) number recorded with and subsequently reported by the granting agency.

To meet this requirement, the W9 form includes the field DUNS number.

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DUNS for Federal Grants (cont)

Use of the Commonwealth DUNS numbers by non-Commonwealth entities is Prohibited. Issuance of the Commonwealth’s DUNS numbers to non-Commonwealth entities such as sub-recipients is prohibited.

If this is done, the Commonwealth may be put into a position of being reported as being primarily responsible for a secondary entity’s activities.

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VendorWeb

Vendor Self Service to view: • Scheduled payments • Payment history

Vendors can see: • Tentative scheduled payment date

or the actual payment date • Payment number • Vendor invoice number • Contract number • Line amount / Discounts • Any associated text information • Department making the payment

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VendorWeb

Secure Login for Vendors: • Vendor / Customer Code • Last 4 digits of TIN

State Employees can view in PartnerNet: • Search by Legal Name or Vendor / Customer Code • Do not need TIN

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Additional Resources

•All Comptroller Policies •Vendor / Customer File and W9s policy •Contractor Authorized Signatory Listing (CASL) policy •Vendor / Customer Job Aids •Accounts Receivable Job Aids

MMARS Help Desk Monday-Friday 8-5

617-973-2468 Comptroller.info@state.ma.us