> ## Documentation Index
> Fetch the complete documentation index at: https://docs.plane.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Streamlined vendor management

> You can now manage vendors separately from contractors.

### Improvement

When the entity you want to pay is a company (that is not a sole proprietorship), it usually makes sense to add them as a vendor.

Vendors can be paid with one-time payments but not added to payroll and won’t have detailed HRIS tracking that is associated with employees or contractors.

If the contractor you are paying is set up as a sole proprietorship, then you can choose how to invite them based on the features you want to use.

* Add the person as a contractor if you want to use any of the following features: Set up contracts, track compensation history, offer benefits, add them to payroll, and/or view them in people reporting.
* Add the person as a vendor if you don’t need any of the features above.

<img src="https://mintcdn.com/plane/APjN5Ky-SfHaSjNd/changelog/images/2023-04-17-streamlined-vendor-management/1.png?fit=max&auto=format&n=APjN5Ky-SfHaSjNd&q=85&s=b85ef9493bcda99bfe50bead8c0f11f6" alt="Streamlined vendor management" width="1120" height="528" data-path="changelog/images/2023-04-17-streamlined-vendor-management/1.png" />
