Vendor Identification Codes, Zip Codes, 1099s and Unclaimed Property Sylvia James Director of Fiscal Services Budget, Accounting & Reporting Council Conference March 2018

Today’s Topics Vendor Identification Codes (Screen MM2001) Creating Zip Codes (Screen ZX0020) 1099s Unclaimed Property

Vendor Identification Codes (Screen MM2001) TO ADD From the System Menu enter MM2001 in the highlighted field and press the “ENTER” Key Using the vendors name covert the name to an identification code using “Standard Naming Convention,” by completing the following steps Standard naming convention: (First 5 letters of the first word in vendor name) + (1) + (First three letters of the second word in vendor name, INC or LLC may be used as well) Example: PIERC1COL would be for Pierce College If the name is too short, use “0”s as a place holder (Example: ABC001000) Once you have completed assigning a vendor identification code, enter the code in the highlighted field and press “F2.” Use the information from the vendor’s W9 to input data into the open fields Be sure to select if the vendor is 1099 eligible, and enter the vendor’s FED TIN If the vendor has a DBA, enter the first name on the W9 in the VENDOR NAME field, and the DBA in the line 1 of both the BUSINESS ADDRESS field and the PAYMENT ADDRESS fields Enter the year/month (18/03) in the NAME field at the bottom of the screen to indicate when the vendor info was updated TO CHANGE After verifying you are looking at the vendor that would want to change, press “F3” Change the data in the appropriate fields, update the year/month in the NAME field at the bottom to indicate when the vendor was updated last Press “Enter” when finished

Creating Zip Codes (Screen ZX0020) TO ADD   From the System Menu enter ZX0020 in the highlighted field and press the “ENTER” Key Enter the zip code you want to add in the Zip Code field and press the "F2" (Add). Enter the name of the City and press the "TAB" key to move to the next field. . Enter the State initials in caps in the State field Press the "ENTER" key after you have entered the information in the State field. City Code and County Code are optional fields. The line at the bottom of the screen above the boxes will say "Add complete". You can then continue to follow the procedures to enter more Zip Codes or press the "F8" (Menu) key to return to the System Menu. TO CHANGE Enter the Zip Code in the first field and press the "F3" (Change) key. Information that has been entered for that Zip Code will be entered into the appropriate fields. Move to the field(s) you want to change by using the "TAB" key. Make your changes. If you need to move backwards to another field press the "SHIFT" and "TAB" keys at the same time. When all changes are entered for that Zip Code press the "ENTER" key. The line at the bottom of the screen above the boxes will say "Change complete". You can then continue to follow the procedures to enter more Zip Codes or press the "F8" (Menu) key to return to the System Menu. TO INQUIRE Enter the Zip Code in the first field and press the "F4" (Inquiry) key. The information that has been entered for that Zip Code will come up on the screen. You can't make any changes when in inquire mode. **NOTE** You can do Inquiry, Add and Change all on the same screen. You don't need to go out of the zip code screen and come back into it for each type of action, just enter the Zip Code and press the corresponding F key for the action you want to perform.

1099s Instructions regarding 1099msc preparation can be found annually on the IRS website. *BEST PRACTICE* Update W9s with the payee annually. Reports to look at, at December month end: MM2206 1099-MISC Summary (By Month) Report MM2205A 1099-MISC Detail Report – Review NO MATCH ON SOBJ MM2205C 1099-MISC Error Report The MM2206 report shows which vendors are in the system that have the 1099 indicator marked with a Y. It totals, by month, how much money was sent to the vendor. Occasionally, some amounts do not show up on the report, so it is necessary to look up each of the vendors that show up on the MM2206, in the BM3002 screen to double check how much money we have sent to them. Print each BM3002 for each vendor that needs a 1099. Add up the invoice payment amounts of any checks printed in the current year. Attach the calculator tape to the BM3002 print out. Compare with the MM2206 report. Print each Vendor Screen (MM2001) for each vendor that needs a 1099. It provides evidence that we have the most current address. Occasionally you may get a notice from the IRS when the name on a 1099 does not match. The IRS considers a TIN as incorrect if either the name or number shown on the account does not match a name or number combination in their files or the files of the Social Security Administration. You are required to send a Backup Withholding Warning to the individual. The IRS requires that this documentation be kept by the college.

Unclaimed Property 1. PURPOSE AND DESCRIPTION This procedure outlines the management and control over statutorily canceled warrants as well as the general accounting processes and Department of Revenue regulations for unclaimed property. SAAM 85.38.40, SAAM 85.38.50, SAAM 85.74.30, RCW 42.56.070(9), RCW 43.08.062 and RCW 63.29 2. RESPONSIBILITIES a. Cancellation of Warrants: The Pierce College Business Office reviews the monthly banking reconciliation report and cancels warrants (checks) that have not been presented for payment within 180 days from the date of issue (SAAM 85.38.40.a & RCW 43.08.062). This is accomplished by removing the check from Key Total Treasury in the Check Maintenance Screen as well as cancelling the check in the Financial Management System (FMS, Screen BM3003). Prior to checks being cancelled in the FMS (BM3003) the Business Office will also verify that the check has not been cashed through Key Total Treasury in the days following the production of the end of month report. FMS Batch Identifiers 52-55 will be set to manual release so that cancelled checks can be reviewed for any Financial Aid (Title IV) that must be returned. This includes but, is not limited to; Pell, Perkins, Stafford, etc. but, does not include institutional Pierce College grant funds. Batches are then reviewed and released. Items that will be sent to the Department of Revenue will be reversed and turned into a “Liability for Canceled Warrants/Checks” (SAAM 85.38.40.a (5)). Items moved into a “Liability for Canceled Warrants/Checks” are logged onto a spreadsheet of statutorily cancelled checks. Should this information be requested in accordance with the Public Records Act (RCW 42.56.070(9)), Pierce College is to ensure that this information will not be used for commercial purposes. Before releasing this information, Pierce College must have an “Affidavit to Release Outstanding or Cancelled Warrants” signed by the individual requesting a copy of the log. Should an individual contact the Business Office, please refer them to the College’s Public Records Coordinator. b. Department of Revenue, Unpresented Checks Unpresented general checks are presumed abandoned after two years if they remain uncashed. Types of general checks for Pierce College include: accounts payable, expenses and drafts, vendor payments, and refunds. Between May 01 and August 01 of every year, the Business Office will send “Due Diligence” letters to the owners of the Unpresented Checks that are valued over $75. For reissue of statutorily canceled warrants, please see SAAM 85.38.40b. Pierce College must report and escheat Unclaimed Property, as of June 30, annually by November 01. Unclaimed Property reports and supporting detail must be kept for 6 years after the filing date (RCW 63.29).