There are two types of category links within VendorLink;
- Vendor - category link
- Cost type - category link
With a Vendor - Category link, vendors are linked one-to-one to a category. All expenses at the vendor belong to one category. This is the simplest link, but it is true that all expenses of a vendor automatically belong to one category. Even if the data you supply does not contain any cost categories, you choose the Vendor - Category link.
With a Cost type - Category link, no vendors are linked to categories, but cost types are linked to categories. This makes it possible to allocate expenses from one supplier to several categories. A requirement of this link is that for each invoice line it is indicated to which cost type the expenditure belongs.
From experience we have learned that the best way is the cost type-category links because you can also distinguish different services and products from vendors (provided these are booked on different cost types). The management of this type of linking is also lower because the number of cost categories is always lower than the number of vendors and also changes less in this. Find out for yourself which link best fits the current situation.
Once you have made a decision, we can go ahead and begin setting up.
Activate a category link
- Navigate to Admin > Spend Settings > Spend Settings.
- Check the link you want to use. It is important that only one link is active.
- Choose a 'Default category' below. Unassigned vendors will be linked to this category when they are transferred to the Vendors module. This list of categories consists of the categories you created in the previous step.
You have provided the VendorLink environment with vendors & categories, and you have activated the category link. In the next lesson we will actually link these vendors.
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