How do you pay one-time/small amount vendors? Are there more efficient ways then setting them up as a new vendor, processing a check payment...?


The best practice for dealing with small amount and one time vendors is to implement a p-card program. Applied to all small dollar spend, p-cards replace invoices and small check payments with one monthly statement and payment to the bank.

There is a lot of information on p-cards on TAPN, as well as a p-card program RFP template and p-card policy template in the AP Tools Suite. (Use the Search to locate the content, and click on AP Tools for the templates.)  

Barring a p-card program, if your vendor master file is a paper-based system, a common practice is to have a Miscellaneous file, where one-off vendors are filed together. When a vendor has three or more transactions, the vendor then gets its own file. But of course you are still processing a lot of small payments.

In electronic vendor files, however, it is often necessary to set up a vendor in the file before the invoice can be processed; so many organizations report that they set up a vendor at the first transaction, of necessity.

Have more questions? Submit a request