It is important that there is close collaboration between the Post Production Management and Finance teams to identify any potential variances from the original budget and collaborate to find solutions to achieve desired outcomes within the same cost envelope.
The cost report is issued from both the Post Production Accountant & the Post Production Supervisor.
Information is shared, cost to date and estimate to complete (ETC) is analyzed, ETC’s are adjusted if required.
PPS cost tracker & room/equipment logs are extremely useful tools in analysis of ongoing rentals and hires.
Cost report topsheets are prepared, outlining period highlights, and explaining any period variances.
Cost reports are then discussed with Producers and Studio before being distributed.
Post Supervisor/Producers should always be involved with the cost reporting & included in all meetings with Accounts to prepare the cost report.
Failure to include the PPS/PPP will result in inaccurate cost reporting
Things change, though, maybe when you first budgeted your project, you were hoping to engage an Editor at a certain rate, but approaching post, they were unavailable, so you had to find an alternative person and the rate you have to pay them is now different.
That’s where the PPS & Post Accountant work best together! The budget was locked at the beginning of the project, so now we aim to reflect the updated or “Work in Progress” budget. We analyze costs and see if we can shake out any savings together to reallocate to other line items that are a bit more than you originally planned.
There is a common misconception that the Budget & your Budget tracking document & the cost report are the same thing. They are not.
Your Budget will be LOCKED after it has been submitted & approved usually before the project starts shooting. A PPS/PPP will then continue to track costs in a tracking document that will shared with the Post Accounting Team & form the Basis of the ETC in the Cost report.
The Cost report is the reporting tool used to measure how the cost of the film/project is lining up with the original budget. We aim to keep the bottom line the same. This means we might move money/allowances around, but the overall cost remains the same unless there are overages that cannot be covered by savings in other areas.
Overages - There are two types of overages!
Approved Overages, this is when we have been able to move money (due to savings in other areas)
Unapproved Overages, this is usually because there has been a major event that has pushed your budget/schedule out beyond what could have been foreseen. At this point the producers will have to find additional funding.
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