Question

Why is it important to keep a file of vendors? *

Answer 1

Why is vendor master data important?

Vendor masters help to record charges for federal and state taxes each year by storing data such as IRS-1099s. It also allows organizations to better understand their spend allowing for future vendor contract negotiation and fiscal forecasting.

Answer 2

Keeping clean data in vendor masters help prevent payment errors such as duplicate payments and potentially missing rebates/discounts. ... Cleansing also reduces the risk of payments made to fraudulent vendors that may have “snuck” their way into a vendor file.