Vendor Compliance is now part of Sage Intacct #MakeYourForemanHappy

Ensure that your vendors provide the required compliance documents before you pay them. The Vendor Compliance subscription, which is included with your Sage Intacct Construction subscription, helps you track compliance-related documents, such as proof of liability insurance or business licenses.

Turn on the Vendor Compliance subscription so that you can:

  • Set up compliance definitions to establish how documents are validated and what happens when a document is missing or expired. Validation is based on either receipt of a document or an expiration date.
  • Specify whether payments are blocked or a warning appears in Accounts Payable if a vendor has an expired or missing document.
  • Create compliance types for each type of document that you need to track. Associate compliance definitions with one or more compliance types.
  • Create compliance records for your vendors. Create one compliance record for each of the vendor’s documents that you need to track.

Set Up Screen 1 – Compliance definitions

Compliance definitions each have a unique ID and name, and they include a validation rule and a notifications setting.

  • The validation rule specifies how compliance is validated, either through the receipt of a document or based on an expiration date.
  • The notification setting determines what happens when a vendor’s document is out of compliance. You can block payments to that vendor in Accounts Payable, or show a warning. You can also select the Ignore option.

If you have multiple document types that will use the same validation rule and notification, you can use the same compliance definition for all of those document types.

Set Up Screen 2 – Compliance types

To use a compliance definition, you must first associate it with a compliance type. A compliance type is typically a specific license or other document that you want to track for vendors. You can associate multiple compliance types with one compliance definition.

For example, your subcontractors are required to have a business license and a specialty contractor license. You want to validate both licenses based on their expiration date. And you want to block payments to the subcontractor if either license is expired.

First, create a compliance definition that validates licenses against an expiration date and blocks payments if a license is expired.

Next, create two compliance types—one for a business license and one for a contractor license. Then associate both of those compliance types with the compliance definition.

Set Up Screen 3 – Compliance records

After creating your compliance types, you can create compliance records for your vendors. You can add multiple compliance records for each vendor. Add one compliance record for each document that you need to track.

You can also import vendor compliance records. Go to Purchasing > All > Compliance records, and select Import.

Note: The use of Custom fields, Smart rules, and Smart events is not yet available for Vendor compliance features.

If you have any questions about setting up Vendor Compliance and how to set it up, please contact us here at ETHOSystems!

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