What's best practice for AP to receive supplier banking info? A form? An email? Does it matter if the form is signed, and if so, how do we verify the signature?


In receiving a supplier’s banking information, the following are all acceptable. The first is the best practice:

  • Through a vendor portal
  • By way of a signed form that the supplier scans and sends via email or via U.S. mail  (scanning is faster, but not 100% tamper-proof)
  • A signed form that is faxed—verify the fax bar at the top matches the supplier's name.

For the second and third, or to set up a template for the first option above, see in the AP Tools section of The AP Network:

As far as validating the supplier signature, use verbiage that says this person has company authorization to provide this information.  

Then, test by sending a very small amount of money to that bank account and have the supplier’s AR validate that the dollars were received.   Make the amount an odd amount, like 36 cents (some companies send a penny).

Don't forget that once this information is received it has to be protected to comply to the privacy laws.

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