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CHECKLISTVendor Onboarding andTermination Checklistwww.aavenir.comAre you correctly onboarding and offboarding your vendors?
2Vendor Onboarding and Termination ChecklistIntroductionVendors areaccessing yournetwork morethan you think.On average,89 vendorsare accessinga company’snetwork everyweek. Creating a vendor onboarding andtermination checklist is a simple techniqueto prevent a vendor failing to be onboardedin your accounting software while alsoensuring cyber and physical security as wellas safety compliance. Assess both tabs to ensure that yourorganization‘s onboarding and terminationactivities are consistent with its policies,practises, and processes. An onboarding checklist will also help youverify that the vendor is a legitimate and haslegal business entity. Alternatively, you can use this templateto offboard or terminate your vendors toensure all your intellectual property andphysical property is returned, very much liketerminating an employee. Disclaimer: These checklists are intended toprovide basic information only, not preciseprofessional or personal advice, and arenot intended to be used as a substitute forprofessional advice of any kind. Use this checklist as a starting point andguide for document creation, in whole or inpart. Simply replace the Aavenir informationin the Header and Footer fields of thisdocument to customise it with corporatemarks and titles.
3Vendor Onboarding and Termination ChecklistVendor Onboarding ChecklistActivityLine of BusinessCheck if vendor will accept P-Card orcredit card to improve cash flowIT Billing Analyst,Accounts Payable1Check vendor is not already in thesystem, including any parent or relatedentitiesIT Billing Analyst,Accounts Payable1Ensure that NDAs, contract and SOWsare fully executed or vendor will agreeto terms and conditions on the Purchase OrderVendor and ContractsManager1Verify vendor's certificate of insuranceif applicableVendor and ContractsManager1Classify vendor based upon COSTModelVendor and ContractsManager1Add vendor to inventory list ofpreferred vendorsVendor and ContractsManager1Ensure that proper paymentinformation is captured such asbanking EFT or mailing addressAccounts Payable,Vendor and ContractsManager, Treasury2Collect and verify all vendor contactinformation (company name addressprovidedVendor and ContractsManager2Verify W-9 or applicable taxdocuments are on fileAccounts Payable2Any other documentation required ifapplicable (i.e. AOC, PCI, BusinessContinuity Exercises)Vendor and ContractsManager Or InformationSecurity2Initial onboarding meetingVendor and ContractsManager, Vendor andany other applicablebusiness units2Apply vendor to performancescorecard if applicableVendor and ContractsManager2Time (weeks)www.aavenir.com
4Vendor Onboarding and Termination ChecklistActivityLine of BusinessBuild a business plan for strategicvendorVendor and ContractsManagerTime (weeks)4Ensuring there is no internal conflict ofinterestAnticipated spend for accurate Purchase Request and Purchase OrdercreationIs there a current vendor who can supply same products or services?Vendor and ContractsManagerPerform financial viability analysis toensure vendor in not high risk to goout of business for the duration of thecontract termCorporate Risk,SourcingVendor is not owned or operated bypolitically risky entityCorporate Risk,Procurement, SourcingThe vendor is willing to sign the ethicalcode of conductProcurement orSourcingVendor is not on any government orinternationally sanctions listCorporate Risk,Procurement, SourcingValidate that the vendor doesn't havea negative insurance rating or highrate of insurance claimsCorporate Risk,Procurement orSourcingwww.aavenir.com
5Vendor Onboarding and Termination ChecklistVendor Termination ChecklistActivityLine of BusinessInternal review of terminationprovisionsContract Manager,Legal and appropriatebusiness units3Compile list of termination provisionsto be actionedContract Manager,Legal and appropriatebusiness units1Internal meeting to determineperformance of Vendor; reviewscorecardContract Manager,Legal and appropriatebusiness units1Have a meeting with the Vendor toexamine termination provisions &obligationsVendor, ContractManager, Vendor andappropriate businessunits2Give Vendor written notice, negotiateif required, and obtain acknowledgement as requiredVendor, ContractManager, Legal andappropriate businessunits8Ensure termination provisions arecompleted by both partiesVendor, ContractManager, Legal andappropriate businessunits12Verify if any personnel/contractorswere issued assets/credentials, andensure HR termination workflowinitiatedVendor, ContractManager, business units,HR, asset managementand information security0.5Switch the status of the Vendor fromactive to inactiveContract Manager1Remove Vendor from inventory list ofpreferred VendorsContract Manager1Obtain & process final invoiceVendor, ContractsManager, appropriatebusiness unitsEnsure that the vendor is deactivatedfrom all systems so that no new transactions are entered intoVendor, ContractsManager, appropriatebusiness unitsTime (weeks)www.aavenir.com
6ABOUT USAavenirAavenir revolutionizes age-old procurementprocesses with AI-enabled Source-to-Pay solutionsincluding RFPflow, Contractflow, Obligationflow, andInvoiceflow. Built on ServiceNow, Aavenir solutionsstreamline procurement, legal, and accounts payablework processes using the latest technologies such asAI, ML, and NLP to eliminate manual work, acceleratecycle time, and reduce dependency by offering smartsuggestions based on historical data. For moreinformation, please visit www.aavenir.comVendor Onboarding and Termination Checklist
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organization's onboarding and termination activities are consistent with its policies, practises, and processes. An onboarding checklist will also help you verify that the vendor is a legitimate and has legal business entity. Alternatively, you can use this template to offboard or terminate your vendors to
