What does the first step of processing vendor payments involve?

The initial step in processing vendor payments typically involves billing the purchase order. This step is crucial because it ensures that the transaction is accurately recorded and that the payment corresponds appropriately to the goods or services received. By billing the purchase order, the system can verify that the items billed match what was ordered and that the terms of the purchase order have been met. This creates a clear audit trail and helps in maintaining financial integrity.

In this context, other options do not represent the first step effectively. Creating a vendor credit generally comes into play when there is a need to return goods or correct an error in billing. Writing and sending checks can only happen once the payment has been authorized and necessary verifications are complete. Receiving further approval from management reflects a control measure that may come after the initial billing process has been conducted. Thus, billing the purchase order is the foundational step that initiates the subsequent processes involved in vendor payment.