What is the first step in the process of making vendor payments?

The correct first step in the process of making vendor payments is to create a Bill for a Purchase Order (PO). When a company receives goods or services from a vendor, it typically starts the payment process by documenting the transaction through a bill. This step involves entering the details of the receipt related to the Purchase Order into the system, allowing for an accurate record of what is owed to the vendor.

Creating the Bill not only tracks expenses but also enables the organization to manage its accounts payable effectively. It ensures that the amounts recorded match the terms agreed upon, and it provides the information necessary for subsequent approvals and payment processing. Once the bill is created, it can then move through necessary approval workflows before payment methods, such as writing checks or making electronic payments, are utilized.