---
title: "What is Vendor master file? Definition"
description: "The vendor master file is the record in your ERP or AP system holding each supplier's legal name, tax ID, addresses, contacts and bank details. Changes..."
url: https://realpayee.com/glossary/vendor-master-file
canonical: https://realpayee.com/glossary/vendor-master-file
date_published: 2026-10-05
date_modified: 2026-10-05
author: RealPayee
---

# Vendor master file

> The vendor master file is the record in your ERP or AP system holding each supplier's legal name, tax ID, addresses, contacts and bank details. Changes to it, especially bank details, are the highest-risk events in accounts payable and should be verified and logged.

_Published 2026-10-05 · Updated 2026-10-05 · By RealPayee_

## Related terms

- [Vendor verification](https://realpayee.com/glossary/vendor-verification): Vendor verification is confirming that a supplier is legitimate and that the bank account you pay belongs to it - at onboarding and whenever its payment details change.
- [Dual approval (segregation of duties)](https://realpayee.com/glossary/dual-approval): Dual approval requires two different authorized people to approve a payment or a vendor-record change, so no single person - or single deceived employee - can move money alone.
- [Know your payee (KYP)](https://realpayee.com/glossary/know-your-payee): Know your payee is the practice of confirming who you are paying before you pay them: that the payee is a legitimate entity, that the bank account belongs to it, and that any change to its payment details was genuinely requested by it.

## Why it matters for finance teams

Most payment fraud reaches AP as a request that looks legitimate. Understanding vendor master file helps your team spot it and apply the right control: verify bank-detail changes and large payment requests with the real person, out-of-band, before money moves. Our free [bank-change policy template](https://realpayee.com/templates/vendor-bank-change-policy) puts that into a written rule.

Full glossary: https://realpayee.com/glossary · All terms as JSON Lines: https://realpayee.com/feeds/glossary.jsonl

## Related

- [Vendor verification: how to verify vendor bank details before you pay](https://realpayee.com/vendor-verification) - A practical guide to vendor verification for finance teams: how to confirm vendor bank-detail changes, run callbacks, and prevent vendor impersonation fraud. (markdown: https://realpayee.com/vendor-verification.md)
- [What should an AP vendor change policy include?](https://realpayee.com/answers/what-should-an-ap-vendor-change-policy-include) - The elements of a vendor master data change policy for accounts payable: scope, verification steps, approvals, evidence, exceptions and review. (markdown: https://realpayee.com/answers/what-should-an-ap-vendor-change-policy-include.md)
- [Vendor onboarding checklist: a fraud-safe process for AP](https://realpayee.com/blog/vendor-onboarding-checklist) - A step-by-step vendor onboarding process and checklist for AP teams: what to collect, how to verify bank details, who approves, and what to log for audit. (markdown: https://realpayee.com/blog/vendor-onboarding-checklist.md)

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