SECTION OVERVIEW AND POLICIES

When processing payments to a vendor, agencies must select a vendor location. In the Statewide Financial System (SFS), a vendor location is a set of business defaults defined by the vendor. Agencies should note that Location is no longer synonymous with payment method, and as a result, agencies can no longer rely on the default location. Instead, they must review and pick an appropriate Location for each transaction, as the default may not be appropriate for a particular transaction. Bulkload agencies should not leave Location blank on submissions to SFS, as this is the same as relying on the default. See Chapter X, Section 4.D – Location of this Guide for additional information about location.

Process and Transaction Preparation:

Each Location has a payment method associated with it. Manual Check and ACH are the two primary vendor payment methods in the SFS. Manual Check produces a paper check, while ACH transmits the payment via Automated Clearing House (ACH). ACH is the preferred method of payment of NYS.

Agencies can view a vendor’s payment method by navigating to the Location tab on the vendor record and selecting the “Payables” hyperlink. Once in Payables, the payment method is displayed under the “Additional Payables Options,” “Additional Payment Information” section. If the Payment Method is “Automated Clearing House,” the payment will be made via ACH. In contrast, if the Payment Method is blank, the payment will be made via check. If an agency needs to send a vendor a check, the agency must select a Location with a blank payment method.

When sending a check, Agencies should be sure the Location selected indicates the correct address where the vendor receives payment. In the SFS, this is referred to as address sequence. Agencies should use the default “Remit to” address sequence for the Location selected unless the vendor requests an alternate address be used.

The location description is populated by the Vendor and is intended to provide agencies with adequate information necessary to select a correct location for orders or payments. If an agency is unable to determine the correct location based on the description, the agency should contact the Vendor for clarification.

There are instances where the OSC Vendor Management Unit will create Locations for a specific use. These locations cannot be viewed or edited by the vendor. Below is a chart outlining these locations:

Guide to Financial Operations

REV. 04/01/2017