How to Merge Vendors in Bill.com

A cluttered vendor list in Bill.com is more than just a minor annoyance; it can lead to potential payment errors, inaccurate reports, and sync problems with your accounting software. Duplicate vendors often appear due to typos, variations in company names ("Big Co." vs. "Big Company Inc."), or different team members entering the same vendor in slightly different ways. This guide will walk you through the exact steps to merge duplicate vendors, explore the best practices to follow before you start, and explain what to do if you encounter any issues.

Why A Clean Vendor List Matters

Before jumping into the "how-to," it's worth understanding why merging vendors is so important. This seemingly small administrative task directly supports the integrity of your financial data. When you maintain a clean and accurate master vendor file, you actively prevent common accounting headaches.

There are three main benefits to keeping your vendor list tidy:

• Accurate Reporting and Tax Filings: When spending for a single vendor is split across multiple duplicate records, your reports become unreliable. This can disguise how much you're truly spending with a key supplier and create significant problems when preparing 1099s. The IRS requires you to report all payments to a vendor on a single Form 1099-NEC or 1099-MISC. If the payments are split, you might under-report or fail to file for a vendor who actually exceeded the $600 threshold.
• Prevention of Duplicate Payments: A messy vendor list is a leading cause of accidental duplicate payments. An AP team member might enter a new bill for "ABC Supplies," not realizing an unpaid bill already exists under "ABC Supplies, Inc." By consolidating all activity under one record, you greatly reduce the risk of paying the same invoice twice.
• Improved Efficiency and Data Sync: A clean list saves your team time and prevents confusion. It's easier to find the correct vendor, view complete payment histories, and avoid creating yet another duplicate. It also ensures a smoother data sync with your connected accounting software like QuickBooks Online or Xero, preventing errors that arise when two systems try to reconcile conflicting or fragmented data.

The Pre-Merge Checklist: What to Do Before You Merge

The single most important thing to know about merging vendors in Bill.com is that the action is permanent and irreversible. Once you merge two vendor records, you cannot undo it. This is why a careful review before you begin is essential to avoid mistakes. Follow this pre-merge checklist every time.

1. Identify the "Keeper" and the "Goer"

First, you need to decide which vendor record you will keep and which one will be merged into it.

• The Keeper: This is the primary, correct vendor record that you want to serve as the master file going forward.
• The Goer: This is the duplicate, incorrect, or less complete vendor record that will be absorbed and deactivated.

Open both vendor records in separate browser tabs to compare them side-by-side. Your "keeper" should generally be the record that has the most accurate and complete information.

2. Validate the "Keeper" Record

Thoroughly inspect the vendor record you've chosen as your keeper. This is the information that will survive the merge. Check the following details carefully:

• Vendor Name: Is the name spelled correctly and formatted according to your company's conventions? Does it match the vendor's W-9?
• Contact Information: Verify the mailing address, email, and phone number are all current. This is critical for sending payments and communications.
• Payment Details: Confirm that the payment method (ACH, check, etc.), bank account information, or mailing address for checks is correct.
• Tax Information: If this is a 1099 vendor, ensure the tax ID (EIN or SSN) is correct and you have a W-9 on file as an attachment.
• Sync Status: Make sure this vendor record is correctly syncing with your accounting software and is mapped to the corresponding vendor profile there.

3. Review the "Goer" Record

Before you merge the "goer" away, give it one final review. Look at its transaction history. Check for any unpaid bills, vendor credits, or pending payments associated with this duplicate record. Don't worry; all this historical data will automatically move to the keeper record during the merge. The purpose of this final check is simply to ensure there are no strange or unexpected transactions that need to be investigated separately before you proceed.

Step-by-Step Guide: How to Merge Vendors in Bill.com

Once you've completed the pre-merge checklist and you're confident in your "keeper" and "goer" selections, you're ready to perform the merge. The process is straightforward and only takes a minute.

Note: You must have Administrator permissions or a custom role with "Manage Vendors" permissions to merge vendors.

1. Navigate to the "Goer" Vendor: Log in to your Bill.com account. From the main dashboard, go to Vendors in the left-hand navigation pane. Find and click on the vendor record you want to get rid of (the "goer").
2. Select the Merge Option: Once you are on the "goer's" vendor details page, click on the More actions dropdown menu in the upper-right corner. From the list of options, select Merge.
3. Search for the "Keeper" Vendor: A new screen will appear with a search box. In this search box, type the name of the vendor record you want to keep (the "keeper"). As you type, Bill.com will suggest matching vendors.
4. Select the "Keeper" Vendor: Click on the correct "keeper" vendor from the search results.
5. Review and Confirm: A final confirmation screen will pop up. Bill.com will clearly state which vendor will be kept and which will be deactivated. It will also remind you that all bills, payments, notes, and documents from the deactivated vendor will be moved to the one you are keeping. This is your last chance to back out.
6. Complete the Merge: If everything looks correct, click the Merge button. The merge will begin processing. For vendors with extensive histories, it may take a few moments. Once complete, the "goer" record will be gone, and all its transaction history will now appear under the "keeper's" profile.

Post-Merge: Understanding the Sync to Your Accounting System

After you merge the vendors in Bill.com, the system automatically sends this update to your connected accounting platform. If you have a sync set up with QuickBooks Online, Xero, or Sage Intacct, Bill.com will instruct that software to perform the same merge on its end. This keeps your vendor lists consistent across both systems.

You can verify this by checking the Sync Status page in Bill.com after the merge. You should see a successful update indicating the vendor merge was communicated to your accounting system. This automation is key to maintaining a single source of truth for your vendor data.

Troubleshooting Common Merge Issues

While the process is usually smooth, you might occasionally run into a snag. Here are a couple of common issues and how to resolve them.

The "Merge" Option is Not Visible

If you navigate to a vendor record and don't see the "Merge" option under "More actions," the cause is almost always related to user permissions. You must be logged in as a user with an "Administrator" role or a custom role that has been granted full "Manage Vendor" privileges. If you need to perform a merge, contact your firm's Bill.com administrator to either have them perform the merge for you or update your user role's permissions.

Sync Errors After Merging

Occasionally, you might see a sync error after a merge. This often happens if the "keeper" and "goer" vendors in Bill.com were linked to two different vendor records in your accounting software. The sync fails because your accounting software doesn't know how to merge two separate records that Bill.com now views as one. In this case, go to your accounting software first. Merge the two corresponding vendor records there. Then, return to Bill.com and run the sync again. This should resolve the error.

Final Thoughts

Regularly merging duplicate vendors in Bill.com is a foundational practice for good data hygiene. It protects the accuracy of your financial reports, prevents costly payment errors, and ensures smoother 1099 filings at year-end. By following a consistent pre-merge checklist, you can keep your vendor file clean and your accounts payable process running smoothly.

Maintaining clean vendor data is also the first step toward confident tax compliance. When questions arise about specific 1099 requirements or the taxability of a particular vendor payment, teams often spend hours searching for clear guidance. With our AI research assistant, Feather AI, accounting professionals can get instant, citation-backed answers to complex tax questions, turning hours of manual research into seconds of confident decision-making.