Managing vendor master data in NetSuite comes with its own set of challenges, especially when compared to other ERP systems who clearly separate entry and approval security objects. NetSuite doesn’t inherently have this segregation built into its standard functionality and permissions. As a result, it becomes crucial for organizations to design roles carefully, ensuring only the right individuals within the vendor management team have access to maintain vendor master data. Without clear boundaries, there’s a higher risk that unauthorized users could make changes, introducing a higher risk of fraud and operational delays. 

In NetSuite, there is no built-in separation between entry and approval permissions for vendor master data. Instead, vendor data management is governed by a single permission called “Vendors,” meaning the same users who can create or edit vendor records can also approve changes.  

Vendor Record in NetSuite: 

Vendor Master Data and Third Parties

While some third-party extensions may allow vendor banking details to be managed separately, these permissions still operate independently. They are not divided into creation and approval permissions. As a result, vendor records and banking information can be updated without formal approval processes unless additional controls are implemented. 

To mitigate this risk, it is essential for organizations to implement an approval workflow using tools like SuiteFlow. A well-defined workflow can ensure changes to vendor records are reviewed by the appropriate parties. This is especially important for sensitive details like banking information. Without this oversight, there’s a significant risk of unauthorized or unnoticed changes that could lead to fraud or payment errors. Implementing these controls helps safeguard financial data and ensures that changes to vendor information are properly authorized. 

For example, if a malicious actor gains access to create or edit vendor records, they could manipulate banking details to divert payments to a fraudulent account. It’s a classic fraud scheme and it can wreak havoc on financial operations. Keeping inaccurate or outdated vendor information can slow payments and frustrate business relationships. It may also cause compliance headaches even beyond fraud. This is particularly true if your organization needs to adhere to regulations like SOX. 

Stay Ahead of the Risks

To stay ahead of these risks, businesses need to take vendor data management seriously. It’s not just about limiting who can view or edit records—it’s about enforcing workflows that ensure every change is carefully reviewed and approved. Additionally, conducting regular audits on vendor records can help identify suspicious activity before it becomes a bigger problem. By tightening access and workflows, organizations can protect themselves from the financial and reputational fallout of poorly managed vendor data.