An approved vendor is a master data accounts list of those associated to acquire,

produce, or transport materials. They are considered reconciliation accounts.

Companies want to approve vendors through a process. We need to consider “who” they
are approving. Are they reliable, can they deliver, and how can they help within
the organization? But once approved a standard of practice is set.

These accounts pertain to materials management, financial accounting and production

records. The approved vendors help with production, and are sourced in both
accounts payable and receivable. Companies approve vendors to keep a business
running. Once a vendor is approved and all information is inputted, the logistical
fields are more functional. Whether the vendor is for transportation services or
production sourcing, a bound contract has already been established. Price points,
delivery times, inventory lists, etc. are all accessible and managed under an
account. Invoice verifications are distributed between both parties and orders can
be placed in associated fields in a faster time frame.