What Is a Vendor Number and How Do I Find It?

A vendor number serves as a unique identifier an organization assigns to its suppliers. This internal code helps differentiate suppliers within the organization’s financial and purchasing systems. It is an internal reference for managing business relationships with entities that provide goods or services.

Purpose of Vendor Numbers

Organizations use vendor numbers to streamline their financial operations and maintain organized records. These identifiers facilitate accurate tracking of transactions, from the initial purchase order through payment processing. For instance, a company’s accounts payable department relies on vendor numbers to ensure payments are correctly attributed to the intended supplier.

Using a distinct vendor number for each supplier helps prevent duplicate entries in accounting systems. This practice is useful when a supplier’s legal name might be similar to another or when they operate under multiple trade names. The Internal Revenue Service (IRS) requires businesses to report payments made to unincorporated vendors for services, typically on Form 1099-NEC. Accurate vendor numbers aid in compiling this information efficiently and correctly.

How Vendor Numbers Are Assigned

Vendor numbers are generated and assigned by the purchasing or accounting software of the organization receiving the goods or services. When a new supplier is onboarded, the buyer’s system creates this unique code. The format of these numbers can vary widely, ranging from simple sequential digits to complex alphanumeric strings, or even codes derived from the vendor’s name.

A vendor number is specific to the buyer’s internal system. This means a single supplier may have a different vendor number assigned by each of their customers. For example, a supplier might be “Vendor #12345” for one customer and “Supplier_XYZ001” for another. The supplier themselves does not assign this number; it is assigned to them by their customer.

Locating Your Vendor Number

If a customer requests your vendor number, they are referring to the specific identifier assigned to your business within their system. The most direct way to find this number is to review documents received from that customer. Look for it on purchase orders or payment remittance statements.

These documents often include the customer’s internal reference numbers for your company. If you cannot locate the number on these records, contact the customer’s accounts payable department directly. They can provide the vendor number they have on file for your business, ensuring you provide the correct identifier.