About Vendor Groups

You use vendor groups to classify your vendor records into groups that share similar characteristics. You define vendor groups adding vendor records.

Vendor groups let you:

• Set default entries to speed up the task of adding vendor records.
• Select accounts for payment. (The vendor group is one of the selection criteria.)
• Select vendors on reports. (Vendor transactions, aged payables, aged cash requirements, letters, and labels can all be printed for a range of vendor groups.)

About Setting Up Vendor Groups

You must define at least one vendor group, and you may define multiple vendor groups.

You use the A/P Vendor Groups screen to define the vendor groups you need.

To define a vendor group, you must:

• Assign a unique code, up to six characters, to identify the group.
• Select the account set, terms code, and bank code to use as the default selections for the vendor records you will add to the group.
• Specify the method for distributing transactions to general ledger accounts. You can distribute invoices by distribution set, distribution code, or general ledger account.
• Specify a default code for the distribution method. For example, if you select G/L Account, you must specify the default general ledger account to which you want to distribute amounts.
• If you have a multicurrency ledger, specify the default rate type for vendors in the group.
• Choose whether to check for duplicate invoices with the same vendor and amount or same vendor and date.
• Choose whether to generate separate payments for each invoice, or pay several invoices with a single check.
• Set default entries for vendor optional fields.
• Select the default tax group for vendors in the vendor group. You must also enter a tax class for each tax authority in the group, and indicate whether tax is usually included in the invoice details.
• Specify whether the vendors in this group are subject to 1099/CPRS reporting. (You can override this choice for individual vendors.)