# What is vms?

Source: https://launch-rec.com/glossary/vms. Category: Operations. Market: US and UK.

Also called: vendor management system.

## Definition

The software an MSP or enterprise client uses to distribute requisitions, collect timesheets and process agency invoices.

## In practice

VMS platforms control your billing. Invoices raised outside the portal do not get paid, and portal timesheet cut-offs drive your real cash cycle more than the client's stated terms do.

Factor VMS fees, usually 2% to 4% of spend, into rate cards before agreeing to a programme.

## Related terms

- https://launch-rec.com/glossary/msp
- https://launch-rec.com/glossary/dso
- https://launch-rec.com/glossary/cash-conversion-cycle