Are there standard vendor classifications that are used by the majority of companies? We use the following classifications and have concerns about combining government with exempt, since not all tax exempt organizations are government.

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  • EMP - Employee
  • GOV - Government/Exempt
  • IND - Individuals
  • INT - International
  • LRG - Large Business
  • SML - Small Business
  • RET - Retirees

We are not aware of a standard for classifications of the kind you list. There is an industry classification system, the NAICS (the North American Industry Classification System), which replaced SIC codes, but it may be too detailed for your purposes.

For vendor master file purposes, many companies devise simple classifications like yours. The key is to determine the distinctions important to your purpose. If you treat a government entity and a nonprofit the same in all ways and cases, then there's no harm in combining them under one classification. But if you must handle some aspect of the relationship differently depending on whether it is a government entity or a not-for-profit non-government entity, then they should be in separate categories, e.g. perhaps GOV and NFP.

 

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