Film Accounting Glossary
Final cost report
What is the final cost report?
Also called final cost, or closing cost report.
The final cost report is the closing statement of what the picture actually cost, issued after wrap once every invoice, residual accrual, and reconciliation is settled.
It becomes the certified negative cost used for participation statements, incentive claims, and the guarantor's release. Producing it can take months after delivery, because the last few open items, insurance claims, union audits, and tax credit adjustments, are the slowest to resolve.
Example
Delivery was in March, and the final cost report is signed in September. The last items to settle are an insurance claim on a damaged vehicle, a union fringe audit adjustment, and the incentive auditor's disallowance of $46,000 of out-of-state purchases.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Issued after wrap once every invoice, accrual, and reconciliation is closed. Becomes the certified negative cost used for participations and incentive claims.
Common mistake
Expecting to close it at wrap. Insurance claims, union fringe audits, and incentive adjustments are the slowest items, and they can run months past delivery.
Related questions
- When is the final cost report issued?
- After wrap, once every invoice, accrual, and reconciliation is settled. On a picture with open claims or audits that can be many months after delivery.
- What is the final cost report used for?
- It becomes the certified negative cost, which drives participation statements, the incentive claim, and the completion guarantor's release.