TheVendor Master Filetopic in the APS Certification Program emphasizes the importance of managing the vendor master file to prevent errors and risks. A key reason is toreduce the potential for fraud, as accurate and validated vendor data (e.g., TINs, addresses) prevents payments to fraudulent vendors and ensures compliance with regulations like OFAC.

Option A (Control the number of vendor calls): Not a primary reason. While a clean vendor master file may reduce inquiries, this is a secondary benefit, not a key focus.

Option B (Reduce the potential for fraud): Correct. Careful management, including TIN verification and sanction list checks, prevents fraudulent vendor setups and payments.

Option C (Monitor vendor quality): Vendor quality is typically assessed by Procurement or Operations, not the vendor master file, which focuses on data accuracy. Incorrect.

Option D (Gain visibility into payment status): Payment status is tracked in AP systems, not the vendor master file, which stores static vendor data. Incorrect.

Reference to IOFM APS Documents: The APS e-textbook underVendor Master Filestates, “Careful management of the vendor master file reduces fraud risk by ensuring accurate vendor data and compliance with validation processes.” The training video emphasizes, “A well-maintained vendor master file prevents fraud through rigorous verification, such as TIN matches and address checks.”