The vendor master file is the repository of a considerable amount of information about a company's suppliers, which are used for the payment of supplier invoices and the issuance of purchase orders. When a business has even a relatively small number of suppliers, a significant number of errors will gradually creep into the vendor master file. Here are a number of suggested ways to clean the file:
On a regular basis, print a report for each supplier that shows every field being used in the vendor master file. Scan the report for missing information in the more important fields, such as tax codes and taxpayer identification numbers (TINs).
Print a list of suppliers, sorted by name, and look for duplicate names that indicate the presence of duplicate records. Determine which of these records to archive and flag them as not to be used again.
Print a report that shows payments to suppliers over the past two years. If there has been no activity during that time period, flag the related vendor master files as archived.
Compare the recorded taxpayer identification numbers for the newest suppliers to the TIN matching program on the IRS website to verify that the recorded numbers are correct. Update any information that is incorrect.