All 22 Vendor Management questions
More in Vendor Management
What is vendor onboarding and what checks are involved? What are payment terms and how are they expressed? What is a W-9 (or W-8) form and why does AP collect it? What is a preferred supplier list and why maintain one? Why is standardized vendor naming and data important? What is the purpose of a vendor onboarding checklist? Why are controls over vendor bank-detail changes so important? How do you detect and prevent duplicate vendors in the master file? What is a supplier statement reconciliation and why perform it? How does vendor segmentation improve AP management?
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Accounts Payable & Receivable › Vendor Management

What is the vendor master file?

Beginner

Answer

The vendor master file is the central record of each supplier: legal name, addresses, contacts, tax IDs, bank/remittance details, payment terms, currency, and status. Accurate vendor master data underpins correct payments, tax reporting, and duplicate/fraud prevention, so changes to it are tightly controlled.
Real-world example Before a supplier can be paid, AP sets up a complete, verified vendor master record with validated bank details and tax ID.

Common follow-ups: Why is the vendor master a fraud risk? | What fields are mandatory?

Invoice Processing Payment Runs Vendor Management
All 22 Vendor Management questions