Large Data systems these days depend on the quality of data we feed them. Optimizing supplier relationships and ERP system effectiveness ultimately rely heavily upon our ability to collect timely accurate information. Too many times across our businesses the data that has been received from suppliers decays and leaves us with useless information for us to look at when we are trying to make decisions.
Accurate supplier data drives system effectiveness and saves time, resource, and dollars. Large volumes of data across multiple systems and departments, along with data decay are challenges to maintaining quality supplier data. Up-to-date supplier information is critical for compliance with regulations and controls, such as OFAC screening, diversity tracking, and new tax legislation.
Lavante SIM: On-Demand Supplier Information Management as a Strategy.
Lavante SIM enables companies to proactively communicate with suppliers and gain real-time visibility into suppliers and relationships. Lavante SIM drives compliance across the supplier lifecycle–from initial vendor master file cleansing, to on-boarding, to ongoing maintenance. Set important Vendor Master Controls and let the Lavante software manage your communications.
Lavante On-Demand Supplier Master Data Management
Drive master data compliance & insight across the supplier life cycle:
Core Supplier Data
Ownership & Diversity
Insurance & Risk
Create an enterprise-wide single source of truth for supplier master data:
Ensure quality of supplier data
Gain insight into your suppliers and relationships
Drive compliance with regulations and internal controls
Drive corporate compliance with new 1099 Tax Legislation
Reduce supplier risk
Reduce cost of managing supplier information
Why Lavante Supplier Information Management?
Quick Time to Value: On-demand, “out-of-the-box” with immediate results
The Highest Supplier Compliance: 8X results of alternative solutions
Ongoing Communication: Drives supplier participation and data quality
Funded by Recovery:Works seamlessly with Lavante Recovery
Benefits of Supplier Master Data Management | MDM Systems | MDM Strategy
Join CEO, Joe Flynn of Lavante in an “Ask the Expert” webinar as he interviews both Jeff Ulanoski, former Rite Aid Director of AP and Jeff Wiest, former AP Manager at Tyco Electronics on the state of Vendor Management.
Find out the benefits of using technology to:Collect and Validate W9s, Monitor and Screen OFAC Lists, Validate Supplier Insurance Certificates, Collect and Track Diversity Status, Manage / Automate Supplier Onboarding, Validate USPS Addresses, Manage changes your Vendor File, More….
Webinar Event: Wednesday, April 3, 2013 10:00 am
Pacific Daylight Time (San Francisco, GMT-07:00)
About the Speakers:
Jeff Wiest led the accounts payable function for the U.S. Financial Shared Services Center of Tyco Electronics since its formation over 10 years ago. During that time he oversaw the post-acquisition integration of more than 20 payables functions into the service center. He was instrumental in the implementation of electronic technology solutions that have resulted in significant efficiency improvements and cost savings. Prior to joining Tyco, Jeff served in various accounting roles for AMP Incorporated.
Jeff worked for over ten years with Rite Aid Corporation as Director of AP, during which time he led that company’s Transaction Tax and Accounts Payable organizations. During his tenure at Rite Aid, Jeff was a key player in the integration of the Brooks Eckerd AP process into Rite Aid. His experience included the introduction of technology-enabled solutions and Best-of-Class processes to improve corporate efficiency, reduce costs, increase cash flow and mitigate risk. Prior to Rite Aid, he spent five years at Foot Locker as Manager of Transaction Taxes.
See a Demo of the Lavante Product Suite where you can automatically set your corporate controls and let the application manage all communication for you
The IRS has numerous publications where they provide printable, downloadable instructions. This information is subject to change at any time by the IRS. As of the data of this publication 3.11.13 we recommend this page on the IRS website http://www.irs.gov/instructions/iw9/ar02.html
How Do I Know When To Use Form W-9?
Use Form W-9 to request the taxpayer identification number (TIN) of a U.S. person (including a resident alien) and to request certain certifications and claims for exemption. (See Purpose of Form on Form W-9.) Withholding agents may require signed Forms W-9 from U.S. exempt recipients to overcome any presumptions of foreign status. For federal purposes, a U.S. person includes but is not limited to:
An individual who is a U.S. citizen or U.S. resident alien,
A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States,
Any estate (other than a foreign estate), or
A domestic trust (as defined in Regulations section 301.7701-7).
A partnership may require a signed Form W-9 from its U.S. partners to overcome any presumptions of foreign status and to avoid withholding on the partner’s allocable share of the partnership’s effectively connected income. For more information, see Regulations section 1.1446-1.
Advise foreign persons to use the appropriate
Form W-8. See Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for more information and a list of the W-8 forms.
Also, a nonresident alien individual may, under certain circumstances, claim treaty benefits on scholarships and fellowship grant income. See Pub. 515 or Pub. 519, U.S. Tax Guide for Aliens, for more information.
Electronic Submission of Forms W-9
Requesters may establish a system for payees and payees’ agents to submit Forms W-9 electronically, including by fax. A requester is anyone required to file an information return. A payee is anyone required to provide a taxpayer identification number (TIN) to the requester.
Payee’s agent. A payee’s agent can be an investment advisor (corporation, partnership, or individual) or an introducing broker. An investment advisor must be registered with the Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940. The introducing broker is a broker-dealer that is regulated by the SEC and the National Association of Securities Dealers, Inc., and that is not a payer. Except for a broker who acts as a payee’s agent for “readily tradable instruments,” the advisor or broker must show in writing to the payer that the payee authorized the advisor or broker to transmit the Form W-9 to the payer.
Electronic system. Generally, the electronic system must:
Ensure the information received is the information sent, and document all occasions of user access that result in the submission;
Make reasonably certain that the person accessing the system and submitting the form is the person identified on Form W-9, the investment advisor, or the introducing broker;
Provide the same information as the paper Form W-9;
Be able to supply a hard copy of the electronic Form W-9 if the Internal Revenue Service requests it; and
Require as the final entry in the submission an electronic signature by the payee whose name is on
Form W-9 that authenticates and verifies the submission. The electronic signature must be under penalties of perjury and the perjury statement must contain the language of the paper Form W-9.
Attend a free webinar to help you understand the effects that the new 1099 laws will have on your company and department. The presentation will be hosted by Sherry DePew the former head of Boise Cascade’s global Shared Services Group and Mindy Harada a renown tax consultant with Armenino McKenna LLP.
The webinar is scheduled for Friday, Sept 17, 2010 at 11AM PDT
Last week Lavante got some excellent coverage by AP Matters editor Diane Sears about Lavante’s Supplier Information Management product, Lavante SIM. Sears makes a number of very compelling observations about the need for SIM in the current corporate environment and she does a great job explaining how corporations that are faced with increasing TIN collection demands can achieve a complete and immediate solution through Lavante SIM.
I’d like to use this format to repeat a few of the Lavante SIM features called out by Sears in her article.
1. It drives compliance from suppliers. It automates the process of gathering information that would cost your company money, time, and resources if it were missing. Perhaps most importantly this year, with the 1099 tussle, Lavante SIM performs an automating taxpayer identification number (TIN) match to ensure quality data. In addition, it automates the process of collecting data and documents by pinging suppliers when their expiration dates are approaching. Lavante SIM also offers an out-of-the-box solution for new supplier set-up and data collection, taking note of details such as the supplier’s status as woman- or minority-owned.
2. It’s affordable.Lavante SIM is a software-as-a-service (SaaS), so organizations don’t have to invest their IT time in setting it up in-house. Also, organizations can start with one or two components and add others as they go. Known for its high-yielding audits in the profit recovery space, Lavante offers a unique solution for keeping the cost of its vendor portal product low. Lavante’s recovery services can pay for the project.
3. It‘s scalable. Charges are based on the application’s ability to get suppliers to comply with data requests. It’s a subscription model based on the number of suppliers per month per tier.
Check back for more links to media coverage of Lavante SIM.
Supplier information is integral to optimizing your relationships with your suppliers and for maximizing the value from your ERP system and other automated solutions. Used correctly, a well kept supplier master data file is a strategic asset that can be leveraged into time savings, resource savings and dollars to your company’s bottom line.
The biggest challenge to maintaining the quality of your supplier data is its near immediate decay after being recorded. Suppliers constantly undergo mergers, purges, acquisitions and employee churn that challenge the integrity of their data. Dun & Bradstreet (D&B) reports its database of businesses experiences annual changes of 20% for addresses, 17% for business names, and 18% for phone numbers underscoring how quickly and frequently supplier data decays. ERP systems perform some data quality measures at the time a supplier is set up, but they do little to preserve the integrity of the data over time. ERP systems are reliant on quality data, but they do not ensure it.
Allowing your supplier data to decay over time is very costly to your enterprise. Inaccurate data delays implementation of ERP systems and other automated solutions and can prevent those solutions from achieving their optimal ROI, effectiveness or their value over time. Failure to identify overlaps or relationships within your supplier population can lead to missed volume discounts or rebates as well as an increase of duplicate payments by up to 300%. Poor supplier data quality is also very costly in terms of lost efficiency and time. Bad addresses alone can lead to miss-sent shipments and checks. Quality supplier data is also vital to stay in compliance with various external regulations and internal controls. Failure to achieve this compliance can be both disruptive and very costly while causing great exposure and risk.
Collection and management of supplier data is more important now than ever. New 1099 tax legislation included in the funding provisions of the Patient Protection & Affordable Care Act (March 2010) requires companies to collect valid Tax Identification Numbers (TINs) on a much larger scale than pre-legislation levels. Today most companies are expected to perform 1099 reporting for less than 10% of their supplier population. When the new law takes effect, companies can expect reporting levels to rise above 90%. Companies will need to implement new policies and potentially even new systems to manage supplier information more accurately in pursuit of staying in compliance.
The question arises: How are you going to ensure the ongoing quality of supplier information to achieve optimal project ROI and on-going efficiency while maintaining compliance with controls and regulations?
Download the “New 1099 Tax Laws” Webinar for free!
We are still celebrating a huge success surrounding last Friday’s webinar. With very limited outreach efforts, we overbooked the capacity of our web cast provider and we retained all attendees for the entire event. Anyone well rehearsed in presenting webinars will acknowledge bth of these data points as huge feats!
Sherry DePew conducted and expert walk-thru of the new 1o99 laws which will dictate the future of 1099 reporting for companies (of all sizes) for the next several years. The new laws will increase workloads, staffing requirements and exposure to significant non-compliance fines. Sherry outlined a very realistic plan for getting all the facts and for getting prepared.
We are scheduling many more webinar events about similar and related topics soon. Please notify us at firstname.lastname@example.org to get on our distribution list.
We would love to hear any comments or questions whether you were able to attend of not and we are offering a free video replay of the webinar by clicking on the tile below.
Section 6041 of the Internal Revenue Code outlines 1099 reporting requirements. The Patient Protection and Affordable Care Act includes an Amendment to Section 6041 which now requires 1099 reporting for any payments aggregating $600 to a supplier per year
The new amendment will now create requirements for reporting for:
All for-profit corporations (excluding tax-exempt corporations)
Payments made for Property (goods, merchandise, supplies, raw materials, equipment, etc.)
Companies will be required to submit accurate TIN information or face monetary penalties
The provision in the health care law is aimed to reduce the gap between income that individuals and businesses make and the federal taxes they pay, which the Government Accountability Office estimates is $345 billion
The Wall Street Journal says Congress hopes the new 1099 provision will collect $17 billion more in federal taxes and fees.
Thursday saw a very dynamic and interactive session for a small but passionate group of Accounts Payable professionals.
Gail K. from UCSF (who is now one of my favorite AP networking buddies) led an informal discussion about filing 1099′s. She used a narrative approach and talked about evey step in the process including vendor setup, how P-cards payed into the scenario/headache, the process she inherited, and her constant negotiations with IT. She was stopped several times along the way with very thoughtful questions. The group would scrum on the topic and then Gail would pick back up where she left off. With a strong “project management” background Gail made really good points throughout about learning from mistakes, training her staff the “right way” and about empowering her people on a go-forward basis.
The group was small, but represented a number of big companies and unfortunately I do not believe today’s meeting attendees will be traveling to Dallas for tha annual IAPP conference. This saddens me, because I can clearly see that there is a huge need for more networking.
This is a very difficult landscape for Accounts Payable and I think the need to connect with with peers has grown in parallel with constantly expanding job duties. In my opinion it is more necessary now to force the time into your schedule to attend chapter meetings or webinars or even to log on and follow a LinkedIn conversation. You will not only benefit from the information that is circulating, you will be suprised by how much other people need to hear what you have to say.