Creating a Filtered Vendor List for the Project Level

Has anyone created a Filtered Vendor List at the Project Level using the Vendor Master BP? There is not much instructions in the manuals.

 I have created the BP with sub category "Line items to filter business process records" and tied it to the Vendor Master.  I keep getting an error "Vendor Master at the Company leved is not used as Reference Process in <Vendor Name>.  I have the Reference Process created in this BP to the Vendor Master with the Destination and Source Element as the Vendor Name. 

Any suggestions? 

Thanks, Sheila