Difference between a Vendor and a Supplier in Accounts Payable

In the context of accounts payable, the main difference between a vendor and a supplier lies in their relationship with the company.

Vendor

A vendor is a company or individual that sells products or services to the company. Vendors typically have ongoing relationships with the company and provide goods or services on a regular basis.

Supplier

A supplier, on the other hand, is a broader term that encompasses both vendors and other entities that provide goods or services to the company. Suppliers can include manufacturers, wholesalers, and other third-party entities that supply products or services.

In summary, while a vendor specifically refers to a seller of goods or services to the company, a supplier is a more generalized term that encompasses all entities that provide goods or services to the company.