Film Accounting Glossary
Vendor
What is a vendor?
Also called supplier.
A vendor is any company the production buys goods or services from, from an equipment house or picture-car supplier to a caterer or a post facility.
Vendors are set up in the accounting system with tax details, payment terms, and insurance requirements before a purchase order can be issued to them. For incentive purposes, where a vendor is located and whether it is a related party both affect whether its invoices qualify.
Example
Two vendors quote the same package at the same price, but one is located in the shooting jurisdiction and one is not. For a 30% incentive on a $60,000 rental, that difference is $18,000 of credit, decided by the vendor's address.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Set up in the accounting system with tax details, terms, and insurance requirements before any purchase order can be issued.
Common mistake
Choosing between equal quotes without checking vendor location. In an incentive jurisdiction, the address can be worth a significant percentage of the invoice.
Related questions
- Why does vendor location matter on a film?
- Because incentive programs generally credit spend with vendors in the jurisdiction, so two identical quotes can differ materially in net cost.
- What is a related-party vendor?
- A supplier connected to the production or its principals. Incentive programs scrutinize these closely and may limit or exclude the spend.