Test Your AP IQ: Master Vendor File Size

February 23, 2007

What is a good rule of thumb to use to determine whether your master vendor file is getting too large?

I just recently accepted a position as an account payable clerk and I enjoy it. I am thinking about joining your program to learn more. My question is that our master file is a mess. However, the supervisor wants to keep all the miscellaneous vendors in tack to have a history. The files aren't being deleted. How would you clean up the file maintenance and protect the company incase something arises with those vendors who needs to be deleted?

PBURNS on February 25
PBurns - My company runs a last activity report on all of our vendors every six months. We don't delete the vendors, but we do put them on hold, which would allow you to keep the records already established. Another issue relates to having the proper controls in regards to vendor file. Who suggests changes and who approves them? How can old vendors be reinstated? Do you go through another new vendor set up to get current information? It is important to keep in mind that too many active vendors increases the risk of paying the wrong vendor and the potential for vendor/employee fraud. This is one area we have worked diligently on since our last external audit. It is a very good exercise to review the vendor master file on an ongoing basis. Good luck.

JGlobensky on March 13