Run: Vendor Master Data Setup SOP

The Accounts Payable Specialist verifies that the vendor request form is fully completed and that all mandatory fields are present before any master record is created. The specialist checks for a clear business justification, requested payment method, and the correct legal entity name. If any required field is missing, the specialist returns the request to the requester for correction and does not proceed.

The Accounts Payable Specialist reviews the vendor's tax documentation for completeness, validity, and consistency with the requested vendor name and country of registration. The specialist confirms that the tax form is current and that any required signatures or certifications are present. If the tax documentation is expired, inconsistent, or missing, the specialist escalates the issue to the Finance Manager and pauses setup until corrected.

The Vendor Master Data Analyst verifies the bank account details using an independent verification method approved by Finance. The analyst confirms the account holder name, bank name, routing information, and payment currency against the vendor-provided evidence. If the banking information cannot be verified or appears inconsistent, the analyst escalates the case for manual review and does not activate payment details.

The Compliance Analyst screens the vendor against applicable sanctions, restricted party, and internal compliance requirements before the master record is approved. The analyst records the screening result and identifies any match, deviation, or exception for escalation. If a potential match or policy conflict is identified, the analyst escalates to Compliance leadership and stops the setup until a disposition is documented.

The Finance Manager verifies that segregation of duties is maintained for the vendor setup workflow. The manager confirms that the person requesting the vendor, the person creating or editing the master record, and the person approving the record are not the same individual when policy requires separation. If a conflict exists, the manager assigns the case to an alternate authorized role and documents the deviation.

The Vendor Master Data Analyst creates the vendor master record in the ERP system using only the approved source documents. The analyst enters the legal entity name, address, tax classification, payment terms, remittance details, and approved banking information exactly as verified. The analyst saves the record and checks for duplicate vendor matches before submission for approval.

The Finance Manager documents the deviation, assigns the issue to the appropriate control owner, and records the reason the standard workflow could not be completed. The manager ensures the vendor record remains on hold until the deviation is approved or resolved according to policy. The manager retains supporting evidence for audit review in the documented information repository.

The authorized approver reviews the completed vendor record, confirms that tax, banking, compliance, and segregation of duties checks are documented, and approves activation in the system. The approver verifies that the record status changes from pending to active only after all required controls are satisfied. The approver ensures the approval trail is retained in accordance with documented information requirements.