Vendor master file
Definition
The master record of approved suppliers in the accounts-payable system, containing each vendor's name, address, tax identification, and payment bank account. Unauthorised changes to this file are a primary enabler of billing fraud.
Related terms
- Benford's Law
- An empirical regularity in naturally occurring numerical datasets: the leading digit follows a logarithmic distribution, with 1 appearing about 30% of the...
- Duplicate-payment analysis
- A data analytics test that identifies invoice payments made more than once for the same obligation, by matching on vendor, invoice number,...
- Pass-through scheme
- A billing scheme in which a legitimate supplier is used as a conduit. The fraudster, who controls or colludes with the supplier,...
- Shell company
- A legal entity with no genuine business operations, created to receive fraudulent payments. In vendor fraud, the fraudster controls the shell and...
- Three-way match
- An accounts-payable control that requires a supplier invoice to match an authorised purchase order and a goods receipt note before payment is...
Explained in
- Billing and Vendor Fraud SchemesThe master record of approved suppliers in the accounts-payable system, containing each vendor's name, address, tax identification, and payment bank account. U...