Vendor Validation

Vendor Validation ensures your company’s vendor data is compliant and less likely to invoke sanctions by verifying critical information like addresses, Taxpayer Identification Numbers (TIN), and compliance with the Office of Foreign Assets Control (OFAC) Sanctions List. This feature integrates with external validation providers to reduce errors and help meet both business and federal compliance requirements. Each validator entity is referred to as a ‘provider’ in Mekorma documentation.

Before you can use Vendor Validation, follow these setup steps:

• Set Permissions: Ensure users have access to Vendor Validation through the User Setup page. Only users with the proper permissions can perform validations.

• Activate Validation Providers: Enable specific validations in the Vendor Validation Setup page:
  • TIN Matching: Confirms vendor TINs with Internal Revenue Services (IRS) records.
  • OFAC Screening: Verifies vendors against the OFAC Sanctions List.
  • Address Validation: Ensures accurate and valid addresses.

• Enable Pay Run Validations: Enable validations to occur at each payment run.

Configuration is company-specific, allowing you to customize the providers for each organization.

Implementation best practice
After implementation, we recommend running a bulk validation of your existing vendors. This helps identify any data or compliance issues early that could later delay payment processing or cause year-end reporting complications.

If you prefer not to validate your current vendor list, you can instead enable Pay Run Validation. This ensures that existing vendors are validated automatically before new payments are issued to them, helping to prevent data or compliance issues.