Master vendor management is the practise of maintaining an accurate master vendor file so your business can have efficiency in their Procure-to-Pay processes and transparency in their vendor data. Good management of your master vendor file ensures your data is accurate, avoiding things like duplicate vendors, inactive vendors and fraudulent vendors. Eftsure simplifies the vendor master data vendor master data management cleansing process by cross-checking your vendor master data against our database of over 2 million Australian organizations. This helps in identifying outdated and duplicate suppliers, ensuring clean vendor master files. All in all, your vendor master file is a powerful, strategic asset that plays a critical role in effective vendor management and the financial success of your business.

• Check out our extensive library of supplier diversity and ESG content by topic, media type, and more.
• Protecting sensitive vendor information from unauthorized access complies with legal obligations like GDPR and fortifies trust between the organization and its vendors.
• A robust data security framework helps mitigate risks and ensures compliance with regulatory requirements.
• We undertake a thorough cleansing of your Vendor Master File data, with particular emphasis on verifying supplier banking records.
• Financial data, including payment terms and bank details, along with performance metrics on delivery times and quality, are also integral.

Master Vendor File

If you are having trouble handling a ton of supplier information and adhering to compliance standards, get in touch with Bedrock. At Bedrock, we utilize automated systems that are capable of handling extensive supplier data, overseeing compliance, and streamlining contract management procedures. Supplier Master Data Management helps minimize these risks and ensures that organizations stay on top of regulation changes to ensure full compliance. When dealing with global supply chains, there are a variety of governmental or regulatory standards that must be adhered to. Vendor information is in constant flux, because contact names, phone numbers, addresses and terms change frequently. This ensures when staff search for a vendor, they find it easily, and when new vendors are set up, they adhere to the standard.

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• This is the only way to ensure that your entire team handles data in a consistent manner, which is essential for maintaining data integrity and limiting the risks of losses through either fraud or error.
• For example, consistently late deliveries might prompt a review of the vendor’s contract terms or a search for alternative suppliers.
• Reach out to each vendor to verify contact details, including e-mail addresses and phone numbers.
• For instance, standardizing date formats to ISO 8601 can eliminate discrepancies in financial reporting.
• With the average vendor master file containing up to 25% anomalous data, incorrect information increases the risk of errors and fraud.
• Without periodic review, it is easy for this listing to grow, to contain duplicate data, and, ultimately, for someone to take advantage of it.

Certain suppliers, such as contractors or freelancers, may require different treatment petty cash during the clean-up. Decide whether to clean them like other suppliers or prioritize those you transact with regularly to ensure data integrity. Whether you opt to delete these suppliers from your files, or simply mark them as inactive, is a decision each organisation needs to make. Making them inactive retains all their records in your systems but ensures no new invoices will be assigned to them. Eftsure will explore vendor master file what it takes to achieve and maintain you stop fraud in this 3-part series.

Remove duplicates and archive inactive vendors

In this second part of our series, we delve into the steps for an effective master data cleansing process. Getting a W-9 for each vendor you do business with will make sure you have the vendor’s Tax Identification Number (TIN), the correct address, and name. Your company can issue an accurate 1099-MISC at the end of the year, and if a W-9 is required to be added to the vendor listing, it will ensure all vendors have registered their business with the IRS. A further control once a W-9 is received is to utilize the IRS’s TIN-Matching (a free tool) service which validates TIN and name combinations with their database.

Today, the master vendor file is recognized as a critical feature in an organization’s fight to protect itself against fraud and erroneous payments. In this piece we review best practices, look at new ones and identify common vendor validation practices. You would also want to implement regular data validation and cleanup procedures to maintain the accuracy and relevancy of your vendor master file.

In the last five years, the energy giant has acquired eleven new businesses, so as you can imagine, master vendor data management became Bookstime quite the task for their Accounts Payable team. Jeff Santos, Accounts Payable Analyst at Energy Transfer shares how Xelix’s automated solution for master vendor cleansing has helped the team gain back control over their ever-growing vendor database. Maintaining your master vendor file might sound like a heavily manual and time-consuming task, particularly if your company has an appetite for acquisition, but it doesn’t need to be. Automating your master vendor management is a smart way to stay on top of changes, reduce risk and be alerted to any unusual activity. The vendor master file is the repository of a considerable amount of information about a company’s suppliers, which are used for the payment of supplier invoices and the issuance of purchase orders. Automated Clearing House (ACH) and other types of payment fraud are on the rise, and bad actors are using vendor master files to do it.