Vendor Validation for Microsoft Dynamics 365 Business Central
Validate vendors year-round with automatic IRS and OFAC checks, built inside Business Central
Watch the DemoValidate vendor details and reduce risk before payments are processed.
Catch tax ID errors early
Prevent payments to restricted vendors
Keep your AP process moving without manual checks
Embedded directly inside Business Central, your AP team can confidently:
Screen Vendors Before Payments Go Out
- Check new and existing vendors against the OFAC (Office of Foreign Assets Control) list to reduce the risk of sending payments to restricted entities.
- Compare vendor names and tax IDs with IRS records to catch mismatches early.
- Validate vendor addresses against USPS data to help ensure records are accurate.
Hold payments when something doesn't look right
- Automatically flag and hold payments if a vendor appears on the OFAC sanctions list.
- Pause payments when tax ID details don’t match IRS records, so issues can be resolved before processing.
- Hold payments when an address cannot be verified, giving your team time to confirm details.
Reduce surprises during 1099 reporting
- Identify tax ID issues early and apply backup withholding where needed, helping ensure smoother 1099 reporting.
Keep a clear audit trail
- Maintain records of vendor checks, showing that your team took steps to prevent payments to restricted entities and worked to resolve tax ID issues.
Where vendor validation breaks down today
Many AP teams:
- Rely on manual checks or one-time reviews
- Catch errors after payments are sent
- Scramble during 1099 reporting
The result is rework, risk, and uncertainty at the worst time.
Curious how teams are catching these issues earlier in Business Central?
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Catch vendor issues before payments are created
With Mekorma Vendor Validation, compliance checks run year-round, as part of your normal process in Business Central.
When vendor details are entered or updated, the system checks them automatically so your team can resolve issues before payments are created.
Vendor Validation is available as part of Mekorma Payment Hub or as a stand-alone tool.
Resources for Vendor Validation
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Vendor Validation FAQs
Common questions about vendor validation and how it fits into your accounts payable process.
What is vendor validation in accounts payable?
Vendor validation is the process of checking that a vendor’s name, tax ID, and status are correct before a payment is sent. This helps reduce errors, prevent fraud, and ensure compliance with tax and regulatory requirements.
Why is vendor validation important?
Vendor validation helps accounts payable teams avoid sending payments to incorrect or restricted vendors. It also improves accuracy in tax reporting and reduces the risk of delays, rework, and compliance issues.
What is TIN matching?
TIN matching compares a vendor’s name and tax identification number with IRS records to confirm they match. This helps prevent 1099 reporting errors and reduces the risk of penalties.
What is OFAC screening?
OFAC screening checks vendors against the U.S. Office of Foreign Assets Control sanctions list. This helps ensure payments are not sent to restricted or sanctioned entities.
Can vendor validation be done inside Microsoft Dynamics 365 Business Central?
Yes. When vendor validation is embedded in Microsoft Dynamics 365 Business Central, checks can run automatically as part of the accounts payable workflow. This helps teams catch issues early and resolve them before payments are created.
When should vendor validation happen in the AP process?
Vendor validation should happen when vendor records are created or updated, and before payments are processed. Running checks continuously helps catch issues early and reduces risk throughout the payment cycle.
Still have questions about Vendor Validation in Business Central?