Options for vendor class setup

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

For example, you may want to group vendors in a class for reporting purposes, such as:

  • Transportation vendors

  • Suppliers

  • Associations to which you pay professional fees

  • Recurring vendors

You may also want to group vendors in a class to reflect your payment processing because you can run a pay cycle for just the vendor classes you select. For example, you might create a vendor class for

  • Vendors who are paid out of a special bank account

  • Vendors that you pay on a separate or unique schedule

    Illustration: Categorizing vendors into vendor classes

You must assign a vendor to a vendor class. Each vendor can belong to only one vendor class. You assign a vendor to a vendor class when you define the vendor using Vendor (AP10.1).