Linking vendors or cost types to categories helps you gain insight into spend per category. If the cost types are valid and available in your administration system, VendorLink can use this information to calculate the spend per category. This is done by using the entered vendor classification to link the correct invoices to the desired category.
If the cost categories are not available or are disabled, the vendors themselves can be directly linked to a category. When cost types are available and valid, there are two options for linking the spend data to categories.
The first option is a direct link between vendor and category; the cost categories are used to automatically find the link. All spend from a vendor is collected within one category. Multiple vendors can be linked to a category.
The second option is to link spend per cost type to a category. In this way, the spend of a vendor can be linked to several categories. When an organisation purchases multiple products from one vendor, this two-option method provides more detailed information.
Choose one of the two methods under: Admin > Spend Settings > Spend Settings > Categorisation Methods.