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Add a Vendor

Distributor steps for adding a vendor in Encompass, including carrier vendor type, inventory vendor and excise tax settings and linking or creating its AP account. Requires v22.08+.

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Written by Bailey Naas-Thornton

Minimum Version Required: 22.08

Steps

How to Add a Vendor

1. Using Universal Search, navigate to the Vendors table
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2. Click the Add Vendors button
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3. Enter values to all required and applicable optional fields displayed in the Add Vendors form and click the Add Record button when complete
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a. If the vendor should be able to be set as the carrier on a shipment or forecast group, ensure that the Vendor Type is set to = Carrier.
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b. If the vendor should be able to be addressed purchases that involve inventory, or costs that would be disbursed into inventory such as third-party freight, make sure that the Is Inventory Vendor field is set to True. This should only be False if the vendor will be related to account-type purchases.
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c. Set Excise Tax Exempt if tax is usually due on purchase but tax should be exempt for this vendor.
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d. In addition to detailing the vendor information, it will be important to associate a vendor with an AP Account to represent the financial side of the business. AP Accounts can be created in three ways:
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I. Leaving the AP Account field blank on the Add Vendors dashboard will automatically create an AP Account with the same name as the Vendor when the vendor record is added.
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II. An AP Account can be created with defined fields by typing in the name of the AP Account in the AP Account drop-down menu and then choosing Add Related Record. Define any required fields and additional information and click Save.
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III. If the AP Account was created in advance and already exists, it can be selected from the AP Account drop-down menu.

Fields And Definitions

Vendor - Name of the vendor (for Quickbook Sync this must match exactly)

Company - The company to which the vendor belongs

Active - True or False if this vendor is currently active

Vendor Type - This field is used to allow the vendor to be set as the carrier on a shipment when the Vendor Type is Carrier, Also, Vendor type can be used for reporting purposes

AP Account - Accounts Payable (AP) account associated with the vendor

Is Inventory Vendor - Determines if the Vendor can be addressed on Purchases with inventory-tracked products

Carrier SCAC - Standard Carrier Alpha Code, used to identify road transport. Optional field that is relevant when Vendor Type is Carrier

Max Weight in Lbs -This is the max weight a vendor (carrier) can haul based on vehicle, trailer, and government regulations. This field is used by PO Generator to calculate the number of PO to create. Optional field that is relevant when Vendor Type is Carrier

Max Pallets -This is the maximum number of pallets a vendor (carrier) can fit in a trailer. This field is used in conjunction with Max Weight in Lbs to calculate the number of PO to create in PO Generator. Optional field that is relevant when Vendor Type is Carrier

Exercise Tax Exempt - If true, sets Purchases from this Vendor to Exempt from State Excise Taxes

Recalculate Cost On Receiving - If true, the cost is recalculated when receiving purchases, and these costs are not editable until the Shipment is received

Address - section to hold the location details for an individual vendor

License - section for License Number, Business Entity ID, and DUNS

Templates - section for the Purchase, Bill of Lading (BOL), and Print Receiving Pallet Tag information

Best Practices

  • The Vendor Type field can be blank, but if the vendor is also a carrier or trucking company, in order for a vendor (carrier) to be set as a carrier on a Shipment or set as the carrier on a forecast group, the vendor type will need to be set as a carrier. This type of Vendor can still be set as the Vendor on a Purchase.
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  • A Vendor is a distinct and separate record from a Supplier. However, when these records would represent the same business entity, they can be bridged by creating a record on the Suppliers Vendors table.
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  • Distributors may choose to use one AP Account for all Vendors or split them out however they wish
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  • Because Vendors are linked to an AP Account in General Ledger, a Vendor is linked to one and only one Company. If a Distributor has two companies that buy from the same Vendor, they will need to have two unique Vendors set up in Encompass

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