I verified with the IRS TIN matching and gave it to our purchasing department to go in and add as a new vendor, under a different vendor code, this way keeping the old company and history safe by starting a new vendor. The purchasing department told me that they were told to go in and change the name and EIN on the current vendor and leave it as that. My question is: what is the best AP practice that should be used? Is there anything in writing to help solve this issue?
Our practitioner expert, Judy Bicking, states that you were correct to create a new vendor. She says, "You gave purchasing the best practice, which would be to create a completely new vendor. If you change the existing vendor record, most ERP systems will reflect the new EIN with all the "old" transactions that actually were purchased under a different EIN. If you want to link these together (which I don't see a legal reason to do), you should indicate that in a memo field. The old vendor number should be closed, and in the attention line of the address, you can refer everyone to the new number."