Accounts Payable Process Best Practice: Vendor Setup

The accounts payable process from a best practice standpoint, should start with the setup of a new vendor (supplier). But, when should that happen vs. when a new vendor is actually set up. In this episode, as I do in my book, 127 Best Practices for Accounts Payable, we’ll discuss the best, almost best and worst practice for setting up a new vendor in the master vendor file. Make sure to stick around until the end when we reveal the worst practice, which regrettably is still used in many, many companies. We’ll explain why this is so bad and how it can cost your organization millions of dollars. #accountspayable #accountspayableprocess #vendorfile
Accounts payable and accounting require the use of both accounts payable best practices and strong account payable internal controls. For the accounts payable process to work well, best practices for AP should be used. The accounts payable process includes master vendor file, or vendor master vendor file. By their very nature, accounts payable best practices incorporate strong internal controls and avoid AP control weaknesses. Those controls include the master vendor file, and more specifically setting up a vendor in the master vendor file.
The accounts payable process from a best practice standpoint, should start with the setup of a new vendor (supplier). But best accounts payable practices and reality don’t always match up. That’s when almost best practices come into the picture. And, of course, the reality is there are worst practices still in use in many accounts payable groups.
Link to Fraud in the Vendor File
• Fraud in the Vendor Fi...
Link to: Worst Accounts Payable Practices [What to Do Instead]
• Worst Accounts Payable...
Link to AP in the Movies
• Real-Life Fraud: How H...
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Host: Mary Schaeffer (www.ap-now.com)

[@Borriqualishes]

For years ive struggled to get this in my head, mostly because of my health condition with too many stokes mostly minor. I have trouble memory wise. Although i still love my career as an AP specialist and continue to learn. People don't see what i go through and fear of not being hired, i cant share. Anyways I'm very glad i came across your page. You make it aound perfectly clear. 25+ years and now I'm understanding 😂 ❤❤❤ thanks to you!

[@Queen-xn8lm]

Love your videos!

[@APNow]

Thank you!!!

[@Queen-xn8lm]

@@APNow no problem!

[@chandrumurugan7914]

Hi mam,
Greetings
Can u make a video about vendor query handling process..much appreciated ur videos.. helping me lot.
Thanks

[@APNow]

I'll add it to the list - Great suggestion - thanks for making it

[@erick-o]

Thanks for the great info! Our AP team just converted from servicing US company, to companies in UK, Germany, Japan, etc. Do you have any guidance on vendor set up compliance for subsidiaries outside the US?

[@APNow]

Great question Erick. Your task just increased exponentially. You need to study the regulatory compliance issues for each country and ensure you are getting the information needed for each - and of course, they are all different. Yes, I know, this wasn't the answer you were hoping for. Simple example. In the US, we do 1099s and collect W-9s. No one else does. But in the UK, they do some payment timing reporting (not quite the right name, maybe someone will chime in) and you need to collect the info for that. Also, for all other countries there may be VAT reporting. Is that done in AP or elsewhere? I'll be interested to learn how you progress. Good luck.

[@Oreocookie-fz3pg]

hello Ma’am . do you have a video about how to read W9 forms how to decide who gets a 1099 form at the end of the year ?

[@APNow]

That is quite complicated. Usually for tax issues such as this, I rely on a tax attorney for advice - so, sadly no videl.