- Owner
- Procurement Manager
- Effective date
- September 15, 2026
- Review cycle
- Every 12 months
1.Purpose
To onboard new vendors with proper compliance screening, accurate setup in financial systems, and a clear first order before relying on them for ongoing supply.
2.Scope
Applies to new suppliers of goods or services being added to the approved vendor list. Ongoing supplier performance reviews are handled by a separate process.
Definitions
- Vendor code
- The unique identifier assigned to a vendor in the ERP or accounts payable system.
- W-9 equivalent
- The tax information form collected from a vendor to support accurate tax reporting and payment setup.
- Compliance screening
- The check of a prospective vendor against sanctions lists, insurance requirements and other risk criteria before approval.
3.Responsibilities
- Procurement Specialist
- Runs the intake process, coordinates screening, and sets the vendor up in the ERP or accounts payable system.
- Vendor Relationship Owner
- Requests the vendor, defines the need, and manages the relationship going forward.
- Compliance Reviewer
- Screens the vendor for risk, sanctions and required insurance or certifications.
- Accounts Payable Specialist
- Verifies tax and banking information and processes the vendor's invoices once approved.
RACI matrix
| Activity | Procurement Specialist | Vendor Relationship Owner | Compliance Reviewer | Accounts Payable Specialist |
|---|---|---|---|---|
| Submit vendor intake request | C | R/A | I | - |
| Collect vendor information and tax forms | R/A | C | I | C |
| Run compliance and risk screening | C | I | R/A | - |
| Set vendor up in the AP system | R | I | I | R/A |
| Place and review first order | R/A | R | - | I |
R = Responsible, A = Accountable, C = Consulted, I = Informed
4.Materials and PPE
Materials, tools and systems
- →Vendor intake request form
- →Tax and banking information form (W-9 equivalent)
- →Compliance and sanctions screening tool
- →Insurance certificate requirements
- →ERP or accounts payable system
- →Standard vendor contract or terms template
5.Procedure
- 5.1
Submit the vendor intake request
Vendor Relationship OwnerThe vendor relationship owner submits an intake request describing the goods or services needed, the estimated spend, and why this vendor was selected.
- 5.2
Collect vendor information
Procurement SpecialistThe procurement specialist sends the vendor an intake packet requesting company details, tax information and banking details needed for payment setup.
- 5.3
Verify tax and banking information
Accounts Payable SpecialistThe accounts payable specialist verifies the submitted tax form and banking details for completeness and consistency before they are entered into any system.
Checkpoint: Banking details are verified through a secondary contact method before being entered, to reduce the risk of payment fraud.
- 5.4
Run compliance and risk screening
Compliance ReviewerThe compliance reviewer screens the vendor against sanctions lists and other risk criteria, and requests any required insurance certificates or certifications for the category of work.
Checkpoint: No vendor is approved without passing sanctions screening and providing any required insurance documentation.
- 5.5
Negotiate contract terms
Procurement SpecialistThe procurement specialist and vendor relationship owner agree pricing, delivery terms and service levels, using the standard contract template where possible.
- 5.6
Obtain approvals
Procurement SpecialistThe procurement specialist routes the vendor file, including screening results and contract terms, for the approvals required by the spend level before setup proceeds.
- 5.7
Set up the vendor in the AP system
Accounts Payable SpecialistThe accounts payable specialist creates the vendor record in the ERP or accounts payable system, assigns a vendor code, and enters verified tax and banking details.
- 5.8
Confirm the vendor record
Procurement SpecialistThe procurement specialist reviews the completed vendor record for accuracy against the intake information and contract before it is marked active.
- 5.9
Hold a kickoff call
Vendor Relationship OwnerThe vendor relationship owner holds a short kickoff call with the vendor to confirm ordering process, contacts and expectations before the first order is placed.
- 5.10
Place and review the first order
Procurement SpecialistThe procurement specialist places a first order or purchase order with the vendor and reviews delivery, quality and invoicing accuracy against what was agreed.
- 5.11
Schedule a performance review
Vendor Relationship OwnerThe vendor relationship owner schedules an initial performance check-in after the first few orders to confirm the vendor is meeting agreed service levels before scaling up volume.
6.Quality checks
- →Every active vendor has passed compliance and sanctions screening.
- →Banking details are verified through a secondary contact method before entry.
- →Vendor records in the AP system match the approved contract terms.
- →A first order is reviewed for quality and invoicing accuracy before volume increases.
7.Records
- →Vendor intake request and information packet
- →Compliance screening results and insurance certificates
- →Signed contract or terms
- →Vendor record in the AP system with assigned vendor code
8.KPIs
- →Time from intake request to active vendor status
- →Percentage of vendors passing screening on first review
- →First-order accuracy rate
- →Percentage of vendor records with complete documentation
9.Common mistakes
- →Entering banking details without verifying them through a secondary contact method.
- →Skipping compliance screening for a vendor referred by someone internally.
- →Setting up a vendor in the AP system before contract terms are finalized.
- →Placing large orders before reviewing how the vendor performs on a smaller first order.
10.Revision history
| Revision | Date | Description | Reviewed by |
|---|---|---|---|
| 1.0 | September 15, 2026 | Initial release | Alexa Uskova |
This is a template. Adapt it to your organization, equipment and local regulations before use.
