A vendor is a person or business that supplies goods or services to a company. Another term for vendor is supplier.
In many situations a company presents the vendor with a purchase order stating the goods or services needed, the price, delivery date, and other terms. Generally, when the vendor delivers the goods or services it will also send an invoice to the company. The company should then match the vendor's invoice with its purchase order and receiving report. If the three documents are in agreement, the company can than arrange for payment to the vendor.