Daitron, Inc. Revised 12/13/2007
SAL102-2 1 of 13
MAS200 PURCHASE ORDERS______
New Vendors & Existing Vendors
When you have a new vendor, you will need to open a new Daitron account. Also, there will be times when you need to change the current status of existing vendors and when you need to close a vendor’s Daitron account. This section explains the procedures for opening, closing, and revising vendors’ Daitron accounts, and who has the authority for final approval of each of these actions.
1 Authority for Final Approval…. 1
2 Setting up New Vendors………. 2
3 Changing Vendor Status………. 6
4 Closing Vendor Accounts……… 7
1 -- Authority for Final Approval --
1). Opening / closing / revising vendor’s accounts
Final Approval - Administration Division Manager
2). Changing Payment Terms
(a). Better Deals (e.g. Postponing Payment Term)
Final Approval - Department Manager
(b). Worse Deals (e.g. Shortening Payment Term)
Final Approval - Administration Division Manager
Proposal - Department Manager
3). Changing Payment Terms (Temporary)
Final Approval - Administration Division Manager
Proposal - Department Manager
2 -- Setting up New Vendors --
1. The Accounting Department needs a New Vendor Information Form filled out with all the necessary information. The form can be found at the following address:
http://www.daitroninc.com/5_Forms/4_Sales_Related/2_ForVendor/New_Vendor_form.xls
<New Vendor Information Form>
2. Sales gives the vendor information form to the Administration Division Manager to be approved.
3. After receiving approval, Sales forwards the information form to the Accounting Department.
4. The Accounting Department will request a W-9 form from the vendor.
5. Based on the W-9, Accounting will determine whether or not it is necessary to file a 1099 form. (In general, no for corporations, yes for all others.)
Yes for each vendor to whom Daitron pays the following:
- at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest
- at least $600 in services (including parts and materials), rents, prizes, and awards, other income payments, medical and health care payments
- gross proceeds paid to an attorney
- direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment
- if you have withheld any federal income tax under the backup withholding rules regardless of the amount of the payment
No for:
- payments to a corporation, except for attorney’s fees
- wages paid to employees reported on Form W-2
The due dates for 2008 are:
- January 31, 2008 – a copy must be furnished to the recipients
- February 29, 2008 – Form 1099 must be filed with the IRS
6. Accounts Payable registers the new vendor on MAS 200.
b. Open the Modules menuàAccounts PayableàMainàVendor Maintenance
c. On the “1. Main” tab:
1) Create a vendor number with the format: Section Code-VENDOR.
Section Codes are:
00 Oregon Expense
10 SED Vendor
30 DSC Vendor
35 NBD(ELE) Vendor
40 ELE Vendor
45 Chori Vendor
81 DLN Expense
85 DLN Vendor
Vendor name (VENDOR) may be up to seven letters long.
2) You must also enter address, zip code, country, telephone or fax number, and terms code (click the magnifying glass and select terms code from the list).
3) You may also enter the G/L account number, but it is not required.
Sample
d. On the “2. Additional” tab:
1) If a 1099 is required (see step 5 above), select vendor type as either “business” or “individual.” You must enter the vendor’s tax ID number (social security number for an individual). Enter 7 in the “Default Box No.” field.
2) If a 1099 is not required (for corporations), select “none” for vendor type.
e. Click “Accept.”
Sample
3 -- Changing Vendor Status --
1. When a company merger or any other event causing either the vendor’s tax ID number OR payment terms to change occurs, Accounts Payable must create a new vendor number for the vendor (follow steps 1~6 listed in “2 -- Setting Up New Vendors --” above).
2. When a vendor changes name or address only, Sales completes the Change Vendor Information Form located at:
http://www.daitroninc.com/5_Forms/4_Sales_Related/2_ForVendor/Change_vendor_Form.xls
<Change Vendor Information Form>
After completing, Sales submits this form to Accounts Payable.
4 -- Closing Vendor Accounts --
Every month, review accounts that have been inactive for the last 5 years.
1. Create a list of inactive accounts.
a. In MAS 200, open ModulesàAccounts PayableàCustom ReportsàVendor Account Review. This screen will appear:
b. Enter 5.
c. The following screen will appear:
1) Enter ../home/cm in the path name field.
2) Enter file name in the format: divisioncodeVRmmyy.xls. (You will create a separate report for each division code.)
d. Press Enter and the following screen will appear.
e. Enter 7 and press Enter.
f. This screen will appear. Select Yes.
g. This screen will appear. Enter NO to be able to change the ending date and the section code. Press Enter to move between lines.
h. Leave the first line blank (LAST_Activity STARTING). Enter the date of last day of the month 5 years previous in the second line (ENDING).
i. Enter the division code. You must create a different report for each division (00, 10, 30, 35, 40, 45, 81, 85).
j. Press Enter again and answer Yes to the question at the bottom of the screen.
k. The report will be saved on the cm drive. Repeat step 1 for each division code.
2. Open the excel documents you created in step 1.
3. Designate each vendor on each list you created in step 1 as a “temporary vendor” in MAS 200.
a. Open ModulesàAccounts PayableàMainàVendor Maintenance.
b. Enter the vendor numbers one at a time.
c. Check the “Temporary Vendor” box for each vendor.
d. Click Accept.
Sample
(this vendor is not actually a temporary vendor)
4. Review “temporary vendor” accounts for closing.
5. Remove accounts from MAS 200.