Five Reasons To Keep The Vendor (Supplier) List Clean

Figure 1 – The push broom used to keep shop floors clean

Most organizations have a safety policy in place.  High on the list of safety is keeping the premises clean and tidy.  An extension of this "clean and tidy" practice should be to keep the vendor list clean in the ERP system.

Why? Here are five reasons to keep the vendor list clean.

1. The longer and messier that the vendor list is, the more likely coding errors will happen. 
2. This increases the chances of the wrong vendor being paid for an invoice assigned to them in error.
3. Now, there are two voids to process, one for the cheque payment, and one for the invoice.
4. If Vendors have not been used in the last two years, inactivate them to reduce the risk that invoices will inadvertently be assigned to them. (In Dynamics GP, for example, run a SmartList to show vendors that have not received payment for the last two years, and then inactivate them.)
5. Managing the vendor list and reviewing it quarterly or semiannually will help to minimize the occurrence of fraudulent vendors, that is, vendors who submit the same invoice under different names.  You will catch these errors  because  you are watching.

The team at Dynamics MCT Consulting has been implementing Microsoft Dynamics ERP Business Solutions for more than 15 years and provides a full range of Microsoft Dynamics services.  Please contact us for more information on capabilities or how we can help you with a Dynamics implementation.

Send an email to Support@dynamicsmct.com or call us at Toll Free:  +1.780-555-6144.

Submitted by Judith Hirst CPA, CMA MCP Senior Financial Analyst

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