Vendor Setup

AppFolio only requires a first and last name to save a vendor. That creates the record and nothing else. The vendor is not usable until the portal is activated, and activation is not something we can do for them.

Sending the invitation is not activation

The vendor has to click the link and sign in. Until they do, there is no payment method on file, they cannot upload compliance documents, and they cannot see their work orders. This is the step that gets missed. See Activate the Vendor Portal.

Before You Create

Search for the vendor first. There are hundreds of vendors in the database and duplicates cause split payment history and misrouted bills. Type the company name and the contact name into the search bar before creating anything.

Collect these from the vendor:

• Contact name and company name
• Billing email address
• US mobile number (AppFolio cannot text a landline or a non-US number)
• Remittance address
• W-9
• Certificate of insurance with expiration dates

Create the Vendor

Go to People > Vendors, then click New Vendor in the Tasks menu on the right.

Vendor Information and Contact

Most of this form is self-explanatory. Four things need a decision:

• Vendor Type: see the table below. This one is hard to fix later.
• Use company name as display name: check it for companies so the vendor sorts and searches by company.
• Emails: the first email listed is what AppFolio uses for portal activation, work order links, and eCheck receipts. Put the billing contact first.
• Phone Numbers: enter the US mobile and set the type to mobile, or texting will not work.

Vendor Type	Use for	Effect
General	Maintenance and service vendors	Standard vendor behavior
Utility	Gas, electric, water, trash, telecom	Bills become utility bills with service dates and an account number. See Utility Vendors
In-house Maintenance	Companies running their own maintenance business	Can generate a PDF invoice when billing from a work order
External Management Company	Outside management companies	Used in the End Management flow when a property transfers out

Requests, Tax, and Accounting

Copy the taxpayer name and ID straight off the W-9 and check Send 1099? if we file one for them. Leave the Accounting Information defaults alone unless the vendor has asked for something specific. Work Order Adjustment is required, so enter 0.0 when there is no negotiated markup or discount.

Check the document requests that apply to this vendor. AppFolio sends one invitation covering everything selected.

Request	Check it when
Payment information	Always, for any vendor we pay
W-9 documentation	We do not already have a current W-9 on file
Liability Insurance	Any vendor performing work at a property
Worker’s Comp.	The vendor has employees or sends a crew on site
EPA Certification	Painting, renovation, or demo on pre-1978 buildings
Auto Insurance	The vendor drives or hauls on our behalf
State License	Licensed trades: plumbing, electrical, HVAC, roofing, general contracting
Contract	Recurring service vendors: landscaping, janitorial, pool, elevator, fire, pest, security

Worker's comp exemptions

A sole proprietor with no employees may not carry worker’s comp. Do not skip the request. Get the exemption in writing, attach it to the vendor page, and confirm with Anna or Rachana before the vendor is assigned work.

Attach the W-9, the certificate of insurance, and any signed contract under Notes & Attached Files, then click Save.

Full field reference

Vendor Information

Field	What to enter
First Name / Last Name	Required. The contact at the company. If there is no named contact, put the company name here so the record saves.
Company Name	The billing entity. Prints on checks and the 1099.
Website	Optional.
Vendor Trade	The type of work they do. Drives Vendor Suggestions on new work orders.
Tags	Optional grouping. Use an existing tag before creating a new one.
Do Not Use Vendor for Work Orders	Check for vendors that never get assigned work: utilities, insurance, professional services.

Contact

Field	What to enter
Phone Numbers	A US-based mobile, typed as mobile. Office, dispatch, and fax numbers go in as additional numbers with a label in Additional Details.
Emails	At least one. First in the list is the one AppFolio uses for everything outbound.
Addresses	The remittance address, meaning where a check would be mailed.
1099 Address	Leave Use vendor address as 1099 address checked unless the vendor gives a different one.

Federal Tax

Field	What to enter
Taxpayer Name	From the W-9. Check Use company name as taxpayer name when they match.
Taxpayer ID	The EIN or SSN from the W-9. Required if we file a 1099.
Send 1099?	Check only if we file a 1099 for them.
Balance Forward For 1099	Amounts already paid this tax year outside AppFolio. Leave at 0.00 for a new vendor.

Accounting Information

Field	What to set
Consolidate Checks	Leave on All bills on single check unless the vendor asks for one payment per bill.
Check Stub Breakdown	Leave on List each bill detail line item so the vendor can match the payment to their invoices.
Hold Payments	Check only to stop payments. Bills can still be created, they just will not appear in Pay Bills.
Email eCheck Receipt	Leave checked. The receipt goes to the first email listed in Contact.
Payment Terms	Set if the vendor has standard terms. Bills then set the due date automatically.
Default Check Memo	Optional. Use for an account number the vendor wants on every check.
Default GL Account	Optional but recommended. Pre-fills the GL on every bill and work order for this vendor.
Work Order Adjustment	Required. Enter 0.0 unless there is a negotiated markup or discount.
Adjustment Type	Markup or Discount. Only applies if the adjustment is not zero.

Payment Type

Leave this alone. The vendor picks their own payment method in the portal. Only users with Full Access to the Owner/Vendor PII permission can view or edit bank account information.

Activate the Vendor Portal

Go to Communication > Letters, then click Vendor Portal Activation in the Tasks menu. Select the vendors to invite and click Email. Only vendors with an email on file can be selected.

The Activated column on this page is the one place to see who has actually finished. Come back to it to chase the ones still showing No.

This is what the vendor receives. Nothing happens until they click through and sign in.

Once activated, the vendor returns at vendor.appfolio.com with their own username and password. They set up two-step verification, choose a payment method (Instant Pay, direct deposit, or mailed check), upload their compliance documents, and see their work orders. We cannot see inside a vendor’s portal.

Activating one vendor

For a single vendor, open their vendor page instead. Vendor Communications shows Portal Activated? Yes/No with an Activate Portal button, and Online Payables has Request Payment Info. A secure link on a work order also activates the portal.

First ACH payment is slow

New or updated bank accounts settle in 3 to 5 business days for the first 30 days. Do not promise a vendor a fast first payment.

Compliance Documents

Compliance controls are on. A vendor with an expired date cannot be used to create a work order or purchase order, create a bill from one, create a recurring bill, or be paid. A bill can still be created under Payables.

AppFolio names the expired item and blocks the selection.

To fix it, get the current certificate from the vendor, open the vendor page, scroll to the Compliance block, and click Edit. Update the expiration dates and save. The restriction lifts immediately.

Utility Vendors

Set Vendor Type to Utility for gas, electric, water, trash, and telecom. Do this before their bills start coming in.

Utility bills have statements, not invoice numbers

A regular vendor invoice carries an invoice number, which becomes the Reference Number on the bill. Utility bills do not. They have an account number and a statement period. Smart Bill Entry only pulls the account number and statement service dates for vendors typed as Utility. Typed as General, those fields come back empty and every bill has to be corrected by hand.

REA pulls utility statements from vendor portals on the 1st and 15th rather than waiting for the vendor to email them. See AP Processing Workflow.

Tell the Vendor How to Bill Us

Cover this before their first job:

1. Send invoices to the Smart Bill Entry address, not to a person. The address is listed in Accounting > Payables > Smart Bill Entry.

2. Add two contacts to their email: our Smart Bill Entry address and donotreply@appfolio.com, so AppFolio’s confirmation replies do not land in spam.

3. One invoice per PDF. Smart Bill Entry only reads the first page of a file.

4. Put the work order number on the invoice. That links the bill to the work order and closes it out automatically on approval.

Setup Checklist

	Item
☐	Searched first, no duplicate record exists
☐	Vendor Type correct (Utility for utilities)
☐	Billing email entered first in the Emails list
☐	US mobile entered and typed as mobile
☐	Remittance address entered
☐	W-9 collected, taxpayer name and ID entered, Send 1099 set
☐	Compliance documents requested and expiration dates entered
☐	W-9, COI, and contract attached to the vendor page
☐	Portal invitation sent
☐	Vendor told to bill Smart Bill Entry, one invoice per PDF

Quick Reference

AP Processing Workflow How invoices flow from receipt through Smart Bill Entry to payment.

Work Orders Assigning vendors and how vendor bills close work orders.

AP Schedule Weekly approval and payment schedule.