Vendor classes

A vendor class represents a subset of vendors in a vendor group. Vendor classes categorize vendors that share common characteristics. They are used for reporting and payment processing. Several defaults can also be set at the vendor class level and you can perform inquiries by vendor class.

For example, vendors can be grouped into a class for reporting purposes, such as:

• Transportation vendors
• Suppliers
• Associations to which you pay professional fees
• Recurring vendors.

Vendors that are grouped in a class can be used to reflect payment processing because pay cycles can only be run for selected vendor classes. For example, vendor class can be created for:

• Vendors that are paid out of a special bank account
• Vendors that you pay on a separate or unique schedule

Each vendor must be assigned to a vendor class and can belong to only one vendor class. You must assign a vendor class when you define the vendor.