DV Step 2: Search for an existing payee or vendor record

On This Page: Warning! | Kinds of Vendors in KFS | Employee Payee Records | DV Payment Reasons and Payees/KFS Vendors | When to Use Each Vendor | Search for an Existing KFS Vendor

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Warning!

Always search for an existing vendor record before creating a new record! If a vendor record already exists for your payee, do not create a new one. When searching, remember that someone else may have established a vendor record using a slightly different name (e.g., “Bunger and Robertson” and “Bunger & Robertson”).


Kinds of Vendors in KFS

'Vendor records' are individuals and/or entities who are set up in KFS to receive DV payments. Each vendor type has a two-character code assigned by KFS, listed in parentheses below.

Note: W-8 and W-9 forms are tied to the United States income tax system. They provide an employer with a taxpayer’s name, address, and Taxpayer Identification Number (TIN) so the employer can report the taxpayer’s earnings to the IRS.

  • W-9: for those considered a U.S. person for tax purposes
  • W-8: for those considered a non-U.S. person for tax purposes.

A W-8 is good until December 31 three years after the W-8 was originally signed. For example, a W-8 signed 6/21/14 will be good through 12/31/17. If the signature on the W-8 will be expired when University Tax Services reviews the DV, a new W-8 should be submitted.

Purchase Order Vendor (PO)

  • Vendor Information Packet (VIP) is required.
  • Approval requires:
    • Submission of tax paperwork (W-8 or W-9).
    • Verification of the vendor’s name and tax ID number via the IRS Taxpayer Identification Number (TIN) lookup.
  • PO vendor record submissions are reviewed and approved by the Vendor Work Group in Purchasing.
  • Can receive payment from either a purchase order or a disbursement voucher.

Disbursement Voucher Vendor (DV)

  • Approval requires:
    • Submission of tax paperwork (W-8 or W-9).
    • Verification of the vendor’s name and tax ID number via the IRS Taxpayer Identification Number (TIN) lookup.
  • DV vendor record submissions are reviewed and approved by the DV Vendor Approval Workgroup in Accounts Payable.
  • Can receive payment from a disbursement voucher but not a purchase order.

Participant Payment Vendor (SP)

  • Do not need a W-8 or W-9 to establish.
  • SP vendor record submissions are reviewed and approved by the DV Vendor Approval Workgroup in Accounts Payable. This AP team checks to ensure that a PO or DV vendor record does not already exist for the vendor.
  • Maximum payment: $400 per calendar year. If you anticipate that a study participant will be paid more than $400 (from participation in one or multiple studies), inactivate the Participant Payment vendor record and create a DV vendor record for that participant.
  • Can only receive certain kinds of DV payments.

More information about Participant Payment vendors, including exceptions to the $400 annual payment limit, is available on the FMS website.

Refund Vendor (RV)

  • Non-taxed (do not need a W-8 or W-9 to establish).
  • Vendor record routes straight to final once the vendor document is submitted in KFS.
  • Can only receive certain kinds of DV payments.

Revolving Fund Vendor (RF)

  • Revolving fund operation is similar to that of a petty cash account with no dollar limit.
  • A revolving fund is opened in the name of a researcher or professor.
  • Vendor record routes straight to final once the vendor document is submitted in KFS.
  • Can only receive certain kinds of DV payments.

Employee Payee Records

All IU employees have an Employee Payee Record. Employee payee records are created automatically based on Human Resource Management System (HRMS) records. The payee number in KFS matches the employee ID number.

In almost every situation, employee payee records, not a vendor record, should be used when employees receive DV payments. The only exception is when payment is being made for services that are deemed by University Tax Services as not related to the employee’s IU job. Use the Independent Contractor Questionnaire (ICQ) to request determination if the services an employee provides are unrelated to their IU job.

Otherwise, all compensation for employee services must be paid via payroll (additional pay). Never use the DV payment reason “Compensation for Services” to pay an IU employee for services related to their IU job.


DV Payment Reasons and Payees/KFS Vendors

Payee/Vendor Type

Additional Pay?

Disbursement Voucher?
Purchase Order Vendor (PO) No

Yes, except for the following payment reason:

  • (K) Revolving Fund Reimbursement.
Disbursement Voucher Vendor (DV) No  

Yes, except for the following payment reason:

  • (K) Revolving Fund Reimbursement.
Participant Payment Vendor (SP) No

Yes, but only for the following payment reason:

  • (C) Payment to research participant.
Refund Vendor (RV) No

Yes, but only for the following payment reasons:

  • (F) Refund/repayment to individual or agency.
  • (B) Reimbursement for out of pocket expense.
  • (N) Travel payment for a nonemployee.
Revolving Fund Vendor (RV) No

Yes, but only for the following payment reason:

  • (K) Revolving Fund Reimbursement.
Employee Payee Record Yes

Yes, but only for the following payment reasons:

  • (Z) Claims, settlements, or tax payments.
  • (C) Payment to research participant.
  • (F) Refund/repayment to individual or agency.
  • (B) Reimbursement for out of pocket expense.

When To Use Each Vendor

A PO vendor can receive a DV payment, but a DV vendor cannot receive a PREQ payment transaction (PO). PO vendors are the only vendor type allowed on a PREQ document. A DV vendor can, however, be upgraded to a PO vendor by providing additional information.

If your payee already has a PO record but your payment circumstance meets the requirements for a DV, use the PO vendor record anyway. A DV can, however, be used to pay a PO vendor for the following, with no dollar limit:

  • Subscriptions without a contract.
  • Royalties.
  • Tuition payments.
  • Settlements.

If your payee already has a DV or PO record, and is owed a refund or a payment for participating in a research project, do not to create a Participant Payment or Refund Vendor record. Participant payments and refunds can be processed to either DV vendor records or PO vendor records.

If your payee has a Participant Payment or Refund Vendor record but will need a DV or PO vendor record for your payment reason, inactivate the existing record and create a new DV or PO vendor record.


Search for an Existing KFS Vendor

In KFS, search for and select Vendor. Alternatively, scroll down to the Vendor module and choose Vendor from the Reference list.

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Enter your vendor’s name in the Vendor Name field. Use wildcards characters to broaden your search. None of the other fields need to be specified.

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Look under the Vendor Type column to identify the vendor type.

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Keep in mind that the KFS vendor search will not return results for Employee Payee Records, since employees do not have vendor records.