In Accounting, there are times when purchases are made that do not require an actual vendor to be created. 

For example, if you go to the grocery store, or purchase lunch for an associate, you may not want to create a vendor for every grocery store, gas station, restaurant, etc. In these examples, when entering Withdrawals, Deposits, or Credit Card entries, you can use the Generic Vendor instead.

When entering, you can type in Generic or Vendor for this option to appear.