What is a vendor?

Definition of Vendor

In the context of accounts payable, a vendor is a person or business that supplies goods or services to the company. Another term for vendor is supplier.

The term vendor can also be used to mean any seller of goods.

Examples of Vendor

Assume that a company prepares and submits purchase orders to its suppliers whenever the company orders goods. Th suppliers are referred to as the company's vendors. When the company receives the goods it ordered, it will also receive an invoice. The company may refer to the invoice as the vendor invoice.

A wider use of the term vendor would be the peanut vendor at a baseball game or the vending machine in the break room.

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