# Vendor Category

### **Module Guide: Vendor Category**

#### **Module Location**

#### Purchasing > Supplier > Vendor Category

#### **Module Objective**

#### The **Vendor Category** module is a tool for managing master data that has two primary functions:

1. #### **Classification**: To create and manage a hierarchical structure for grouping suppliers/vendors by their type (e.g., Raw Material Vendors, Service Vendors, Expedition Vendors).
2. #### **Accounting Integration**: To link each vendor category to specific accounts in the General Ledger. This setup automates the journaling process for every transaction related to suppliers within that category.

### **1. Main View (Category Structure)**

#### The main page of this module displays all the vendor categories that have been created in a **tree view** format.

![Screenshot 2025-08-12 084333.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/screenshot-2025-08-12-084333.png)

![Screenshot 2025-08-12 084352.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/screenshot-2025-08-12-084352.png)  
  
![Screenshot 2025-08-12 084424.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/screenshot-2025-08-12-084424.png)  
  
![Screenshot 2025-08-12 084439.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/screenshot-2025-08-12-084439.png)

#### **View Explanation**

- #### **Hierarchical Structure**: This view shows the grouping of suppliers, such as Vend-BB - Raw Material Vendors, Vend-BS - Spare Part Vendors, and Vend-JS - Service Vendors.
- #### **Navigation**: To edit a category, **double-click** on the category name. To create a new category, it is usually done by right-clicking on its parent and selecting 'Add'.

### **2. Steps to Manage a Vendor Category**

#### When you create a new category or edit an existing one, you will see a detail form.

#### **Step 1: Fill in Basic Category Information**

#### At the top of the form, fill in the basic details of the category:

- #### **Category Code**: The unique code for the category. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/ndJimage.png)
- #### **Category Name**: The descriptive name for the category.   
    ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/T3Mimage.png)

#### **Step 2: Set Up Account Linking (GL Linking - Important!)**

#### This section is a crucial accounting setup for automating purchasing journals. You must define the default General Ledger account for each type of payable transaction, per currency.

- #### **Account for Tracking Payables**: Define the main **Account Payable** account for this category.
- #### **Account for Tracking Suppliers Deposit**: Define the account for recording deposits given to vendors.
- #### **Account for Tracking Suppliers Down Payment**: Define the account for recording Purchase Down Payments to vendors.

#### **Step 3: Save the Settings**

#### Use the buttons in the bottom-left section to save your changes:

- #### **Update**: Saves the changes for this category setting only. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/ligimage.png)
- #### **Update ALL MASTER VENDOR**: Saves the changes and applies them to all existing vendor data under this category. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/5iGimage.png)
- #### **Delete**: To delete the category. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/d5bimage.png)

### **Tips & Important Notes**

- #### The **Vendor Linked Accounts** settings must be done very carefully and in coordination with the **Accounting team** to ensure all purchase transactions are posted to the correct General Ledger accounts.
- #### A good category structure will greatly simplify the process of reporting and analyzing company expenditures.
- #### Use the **Update ALL MASTER VENDOR** button with caution, as it will change the accounting links for all existing vendors within that category.