Master vendor file complete? Not without these items

The master file vendor is the most critical material AP has at its disposal. So it’s worth asking if your master vendor file has all the info it needs.

Sure, master vendor files need vital info like addresses, contact info, TINs (Tax Identification Numbers) and paid invoices, so everything AP staffers need is right there when they need it.

But these materials are guaranteed to save AP time — and headaches — should a vendor problem or question come up.

• Contract. When pricing errors or disputes occur, your written contract has the potential to clear up a problem before it even starts.
• Dates and terms of discounts. How long does your company have to take advantage of an early-pay discount? Does the discount only apply to certain purchases?
• Limits and restrictions. Making sure your firm has minimum/maximum purchase limits in place for vendors can prevent inaccurate or duplicate-payment info from leaving your AP department.
• G/L info. Including General Ledger numbers in master vendor files can help out come month-end close.
• Sale tax items. It’s a good idea to check if any purchases from the vendor are exempt and include related certificates. Also, there’s possible tax implications if your company ever moves items purchased across state lines or uses them in its facilities.
• AP Comments. Taking the time to let employees know if a certain vendor happens to make the same invoice mistakes over and over again can be very helpful down the line.