How Mekorma’s automated vendor validation tools simplify compliance for Dynamics 365 Business Central and Dynamics GP users

Editor’s note: This article is sponsored by Mekorma.

For companies operating in the US, proper vendor validation and compliance requires a mix of organizational discipline and IT capabilities. As the rules, regulations, and expectations of government authorities evolve, they put new demands on companies to control their data and business processes.

In a recent Mekorma webinar, a panel of experts highlighted critical aspects of vendor validation and compliance processes, and technology advances that are improving the story for businesses. They discussed ways that Dynamics 365 Business Central and Dynamics GP users can take control of their Tax Identification Number, (TIN) matching, Office of Foreign Asset Control (OFAC) checks, and address validation within their ERP systems without adding undue overhead to their teams.

Importance of proper vendor validation

Vendor validation starts with understanding what the IRS and OFAC regulations require of organizations if they want to avoid hefty penalties. AP departments are responsible for much more than simply processing payments, explained Nicole Caley, director of AP shared services at Aspen Dental, to the webcast audience. 

Caley described the challenges companies face in handling TIN matching, a process that verifies whether a vendor’s legal name and tax ID match IRS records. Errors in this process often result in "B notices" from the IRS, which notify companies of mismatches in their 1099 filings. Companies that receive these notices must take immediate action, such as obtaining the corrected information from vendors and possibly initiating backup withholding.

TIN matching is especially important during year-end 1099 reporting. ...