Do most companies require another approval besides an invoice approval to set up a vendor in the master vendor file?

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It is a good business and internal control practice to require at least a management-level position to sign off on any new vendors added to your database. Generally, the approval of an invoice should be by someone other than the person requesting the order.

The requirement of two management-level managers approving invoices and new vendor set-ups is a tighter control, but you may need to consider the cycle time to pay versus the added control of a second management sign-off. If you don't require a second manager signature, then you could compensate by requiring all supervisors in charge of each department to review a list of monthly purchases with vendors assigned to their departments. They can make sure they see who they are doing business with, the amount spent, and sign off on their review.

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