TheVendor Master Filetopic in the APS Certification Program outlines best practices for maintaining an accurate and efficient VMF. These include verifying vendor data, blocking inactive vendors, and consolidating duplicates to prevent errors and fraud.Deleting and re-entering vendors that moveis not a good practice, as it disrupts historical data and audit trails; instead, the VMF should be updated with the new address.

Option A (Having a vendor verification program): A good practice, ensuring vendors are legitimate through TIN matches, address verification, and sanction list checks.

Option B (Blocking inactive vendors after a certain period): A good practice, preventing accidental payments to dormant vendors while retaining their data for records.

Option C (Finding and consolidating duplicate vendors): A good practice, reducing errors like duplicate payments by merging redundant vendor records.

Option D (Deleting and re-entering vendors that move): Not a good practice. Deleting and re-entering disrupts transaction history; updating the address is the correct approach. Correct answer.

Reference to IOFM APS Documents: The APS e-textbook underVendor Master Filestates, “Best practices include vendor verification, blocking inactive vendors, and consolidating duplicates,but deleting and re-entering vendors for address changes is inefficient and risks data loss.” The training video emphasizes, “Update vendor addresses in the VMF rather than deleting records to maintain audit trails.”