Film Accounting Glossary
Vendor onboarding
What is vendor onboarding?
Also called vendor setup, or new vendor form.
Vendor onboarding is the process of collecting what accounting needs before a vendor can be paid: a completed W-9 or the foreign equivalent, verified bank details, a certificate of insurance where relevant, and agreed payment terms.
Doing it at purchase order stage rather than at invoice stage is what prevents a payment run stalling on missing paperwork. Verifying bank details independently, by phone to a known contact, is the standard defense against payment redirection fraud.
Example
Before a PO is issued: a completed W-9, verified bank details confirmed by phone to a known number, a certificate of insurance where relevant, and agreed payment terms. Doing this at PO stage rather than at invoice stage is what stops a payment run stalling.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
The front end of the vendor relationship, and the production's main defense against payment redirection fraud.
Common mistake
Onboarding at invoice stage rather than at purchase order stage. The payment run then stalls on missing paperwork with a vendor already owed money.
Related questions
- What does a production need to set up a vendor?
- A completed W-9 or local equivalent, verified bank details, a certificate of insurance where relevant, and agreed payment terms.
- How should bank details be verified?
- Verbally, by calling a known number for that vendor rather than one supplied in the email requesting the change. It is the main defense against payment fraud.