Why Mekorma Vendor Validation?

In today’s business world, trust is crucial when handling Accounts Payable (AP). This user guide highlights the importance of validations to ensure reliable master data. By carefully verifying vendor/customer information, you can confidently maintain a secure and compliant AP process.

Vendor Validation is designed to ease the workload of your AP team by verifying a vendor or customer’s TIN and address, and validating that they are not on the Office of Foreign Assets Control (OFAC) Sanctions List. Matching Taxpayer Identification Numbers (TIN) specifically applies to US-based vendors and customers, while address validation and OFAC screening can be used globally.

Depending on how you configure your thresholds, these validations will reduce corporate risk and assist in compliance efforts by preventing transactions that breach both Internal Revenue Service (IRS) and OFAC standards. If you get audited, Vendor Validation shows auditing officials that the best efforts have been, and continue to be made to meet compliance requirements.

TIN matching benefits:

• Reduces financial losses by avoiding fines and delays on submissions to the IRS.
• Improves data quality by avoiding duplicate TIN numbers and validated vendor names.
• Enhances staff productivity by avoiding manual validations, reprocessing submissions, and lengthy audits.
  

OFAC screening benefits:

• Assists in the generation of reports of potentially prohibited transactions and activities.
• Reduces financial loss by avoiding fines and penalties that can be imposed by OFAC.
• Enhances staff productivity by avoiding manual validations and lengthy audits.
  

Address validation benefits:

• Minimizes the risk of shipping or payment errors by ensuring the accuracy of your master data.
• Provides the complete zip code, which helps with sales tax reporting.
• Enhances staff productivity by automating simple processes.