This policy establishes the responsibilities and authorizations for completing and accurately maintaining the vendor master file (VMF) at a company. This tool highlights the procedures for new vendor setup through the new vendor information form and details the necessary documentation to ensure compliance and accurate reporting. Additionally, it emphasizes the importance of periodic maintenance of the VMF to mitigate risks such as fraud and non-compliance with regulations. 

Within this tool, you will find information on how payment terms are established and modified, and the required approvals for any deviations. This policy also highlights the roles of various personnel in maintaining the integrity of the VMF, including the payroll administrator and accounting manager, ensuring proper segregation of duties. Regular reviews and audits of vendor records will help prevent duplicate payments and ensure accuracy, providing a clear understanding of the internal controls in place for effective vendor management.

Under this policy:

• The employee requesting a change to a vendor profile must complete the vendor profile revision form (VPRF) located in the accounting folder within the company’s shared drive.
• A completed VPRF is submitted to an authorized signatory for approval of changes to the vendor profile.
• The payroll administrator receives the approved VPRF from the originator (either electronically via email or manually via interoffice) and enters the updated vendor information into the VMF.
• The payroll administrator files all approved VPRFs. If the VPRF was received electronically, then the payroll administrator will need to print and manually file the approved VPRF.