Create Vendor Class

Vendor classes group vendors with similar characteristics to help streamline data entry and maintain consistency. Each class provides default values that automatically populate corresponding fields when new vendor accounts are created.
If a certain field is always different for each vendor, it can be left blank in the vendor class and entered individually during vendor setup. Default values can also be overridden as needed.

Setup

Navigation:  Payables > Preferences > Vendor Classes

To add a new vendor class, use the Add New Record icon on the toolbar. Mandatory fields are marked with an asterisk (*).

1. Class ID: Create the unique identifier of the class.  This field is limited to an alphanumeric string of up to 10 characters.
2. Description: Enter a detailed description of the class.

General Tab:

1. DEFAULT GENERAL SETTINGS - It is recommended to specify the Country at a minimum because this field is required on all vendor accounts.
2. DEFAULT PURCHASE SETTINGS (It is recommended to set this field at the individual vendor level).
   1. Shipping Terms – Define the shipping terms applicable to vendors within the class.
   2. Receipt Action – This sets the default action when goods are received from vendors if certain conditions are not met.  Choose one of the following options:
      1. Reject: Items will be rejected upon receipt.
      2. Accept but Warn: Receipt of the items will be accepted, but the system will generate a warning for the applicable purchase order line.
      3. Accept:  Receipt of the items will be accepted.
3. DEFAULT FINANCIAL SETTINGS
   1. Terms – Default credit terms applied on AP Bills to determine the due date of bills.  
   2. Payment Method – Default payment method used on the AP Bills for each vendor in the class.  
   3. Cash Account – Cash Account from which vendors bills (invoices) will be paid. 
4. DEFAULT PRINT & EMAIL SETTINGS
   1. Print Orders – A checkbox to indicate if purchase orders for vendors in this class should be printed automatically upon release.
   2. Send Orders by Email – A checkbox to indicate that purchase orders for vendors in this class should be emailed automatically upon release.

GL Account Tab:

• AP Account – The liability account used to record the balance of AP transactions related to vendors of this class.  
• Expense Account – The expense account used to record transactions related to vendors of this class.  (Since expense accounts often vary by vendor or by the nature of goods/services, this field is typically defined at the vendor level rather than the class level).
• Discount Account – The GL account used to record amounts of discounts received from vendors in this class.
• Cash Discount – The account used to record cash discount amounts received from vendors related to credit terms. 
• Prepayment Account – The account used to record prepayments paid to Vendors.
• PO Accrual Account – The liability account used to record transactions related to purchase order receipts that have not yet been billed.  

Any modifications to the Attributes or Mailing & Printing tabs should be reviewed with your consultant before making changes.