Master Vendor File Best Practices

Author: Mary Schaeffer

Often not given the attention it fully deserves, the master vendor file is a trove of information and controls for any organization that handles it correctly. The emergence of new frauds, the increased realization that internal controls really do matter and increased regulatory compliance requirements have all shined a light on less-than-stellar master vendor file practices. Now, with all the different types of vendor portals, this old workhorse is getting a lot of attention.

The passage of new 1099 reporting legislation several years ago revealed a weak link in some of our accounts payable functions. Many had poor master vendor file practices and even worse procedures for soliciting taxpayer identification numbers (TINs) for information reporting purposes. Within the last year or two, the need for additional data related to regulatory reporting has become apparent. This course was created to address the growing need for strong internal controls surrounding the master vendor file as well as the increased data requirements.

Publication Date: September 2022

Designed For
Accountants, controllers, accounting managers, auditors (internal and external), Treasurers, CFOs, CEOs, accounts payable professionals, payroll professionals and procure-to-pay professionals and travel managers.

Topics Covered

• Introductory remarks
• Data in the Master Vendor File
• Collecting TINS
• The New Frauds
  • How Vendor File Can Help
• Operational Issues

Learning Objectives

• Identify best practices for onboarding new vendors
• Recognize how to incorporate new up-front verifications into your existing practices
• Identify problems within their existing master vendor file practices
• Identify the repository of information for all vendors that the company does business with
• Identify what percent of companies compare addresses in the master vendor file against the HR file and have it reviewed by a senior level executive, based on the AP Now survey
• Identify how long a Form W-9 is good for, unless there is a change in circumstance
• Identify the most current version of Form W-9

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None