Film Accounting Glossary
Invoice
What is an invoice?
Also called vendor invoice, or bill.
An invoice is a vendor's formal demand for payment, and in production accounting it is only payable once it has been matched to an approved purchase order and evidence of receipt.
Invoices need to carry the production's own PO number, the rental dates or scope, and the vendor's tax details, or they will not survive audit. Coding the invoice to the right account is the moment the cost report gets its data.
Example
An invoice arrives for $14,900 with no purchase order number, no rental dates, and a company name that does not match the W-9 on file. It cannot be matched, cannot be coded with confidence, and will not survive an incentive audit in that state.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Matched by accounts payable to an approved PO and evidence of receipt before entering a check run. Coding it is the moment the cost report gets its data.
Common mistake
Paying an invoice that carries no purchase order number or rental dates. It clears, and then cannot be matched or evidenced when the auditor samples it.
Related questions
- What should a production invoice show?
- The production's purchase order number, the scope or rental dates, the vendor's legal name and tax details, and an amount that matches the approved order.
- What is three-way matching?
- Checking the invoice against the purchase order and evidence of receipt before payment, so a production only pays for what it ordered and actually got.