We talked about the vendor management fundamentals in the last post: https://faoblog.com/processes-ap-vendor-management/
How will a typical process look like? The basic flow will encompass receipt of the request, verification of documentation, supporting and the data, verification of duplication, approvals and then upload to ERP.
See the process flow in the image below (you may click on the image to enlarge it)
So in this workflow, the following steps are prominent:
- The client received / generates a new request for vendor setup or amendment
- This is defined on a pre-designed template or through a web form, filled by either someone in the vendor management department or by the vendor himself.
- This is sent to the provider. At this stage, it may be approved as per the approval matrix or may need the approval of the relevant authorized personnel at the client end.
- Once this is received at your end, you need to verify the documentation as per your pre-defined SOP (standard operating procedure), including the approval matrix.
- Some key things to check are:
- Vendor details, including name, address, tax identification numbers, the product line this vendor deals in (optional)
- For US, a W9 form is also needed as they contain a legal listing of the vendor details
- Validation of pre-existing records / entries in the ERP (which may be dormant) to avoid duplication
- If all validations are fine, and the request is not pre-approved, send for relevant approval.
- Once approval is received, add or update the vendor master.
- Do a final review / check.
- It will be good to publish a report on a periodical basis for all such activity done over a period of time, say a week or a month or what may work for you
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It appears you really fully understand very much pertaining to this topic and it demonstrates through this excellent post, named “Processes
– AP – Vendor Management – workflow | The Finance and Accounts Outsourcing Blog”.
Thanks -Ilse
great stuff