Power of PAYBOX®
The Benefits of Vendor Master File Cleanup
Accounts payable is a dirty business – at least when it comes to vendor master file management.
The vendor master file of most companies is riddled with missing, outdated and inconsistent information, duplicate files, and no information about vendors under the same corporate entity.
Dirty vendor data is particularly bad for large companies that have information on tens of thousands of vendors housed in multiple systems, across multiple business units, and managed by multiple people. The problem is exacerbated by organizational changes such as mergers and acquisitions.
A dirty vendor master file can cost companies millions of dollars in lost revenues from:
- Higher costs through duplicate payments
- Increased operational risk
- Missed cash discounts
- Missed volume rebates
- Fraudulent payments
- Regulatory non-compliance
Cleaning up a company’s vendor master file can pay immediate tangible benefits:
- Fewer duplicate payments: Vendor master cleanup eliminates the duplicate vendor files and vendor coding issues that significantly contribute to duplicate payments.
- Reduced fraud: The Association of Certified Fraud Examiners estimates that the average company loses 5 percent of its annual revenues to fraud. Cleaning and maintaining a vendor master file provides the visibility and controls required to help reduce fraudulent payments.
- Increased staff productivity: Clean vendor files make it easier to find vendors in your system. This makes it less likely that staff will create a duplicate vendor record, and ensures that staff does not waste their time maintaining files that should have been deleted.
- Improved analysis and management of spending: By showing which vendors are parts of the same corporate entity, vendor master cleanup helps companies analyze and manage spending to negotiate better discount terms and proactively manage their debit balances.
- Streamlined regulatory compliance: Vendor master data management drives compliance with regulations and internal controls, as well as compliance with 1099 tax legislation.
- Reduced costs: Compared to traditional manual processes, an ongoing vendor master data maintenance program significantly reduces the costs of managing supplier information.
Direct Insite’s PAYBOX® Company Profile Management suite includes vendor master cleanup capabilities that combine sophisticated algorithms, advanced data matching and configurable business rules to ensure the quality of supplier data and establish a maintenance program for ensuring clean data going forward. Direct Insite helps companies easily identify redundant, incomplete or outdated vendor records. The Company Profile Management solution is also integrated with our PAYBOX® e-invoicing solution.
Learn how you can clean-up vendor master data. Contact me at email@example.com.