Cost Control
You can tell what the sign of a variance means, why a forecast rises on its own and what to check when a variance is negative.
In Cost Control, **Variance** is the budget minus the forecast. A negative variance means the forecast is higher than the budget. The account then costs more than planned. KOSMA shows the variance in red.
| Variance | Meaning | Example from the demo project | | -------- | --------------------------------------------------------- | ------------------------------------------------------------------------- | | Negative | The forecast is above the budget. The account costs more. | 4.02 Overtime Supplement: budget 17,850.00, forecast 20,300.00, −2,450.00 | | Zero | The forecast matches the budget. | 1.01 Screenplay: budget 45,000.00, forecast 45,000.00, 0.00 | | Positive | The forecast is below the budget. There is money left. | 5.02 Locations & Permits: budget 22,500.00, forecast 20,400.00, 2,100.00 |
The further the variance is above zero, the more money is left. The closer the variance is to zero, the closer the forecast is to the budget.
The forecast of an account is at least what has been booked on it, **Paid** plus **Expected**. If the bookings go above the budget, the forecast goes up with them, even if nobody changes it.
In the demo project, account 3.08 Gaffer has a budget of 18,400.00. **Paid** 12,900.00 and **Expected** 6,900.00 make 19,800.00. The forecast is therefore 19,800.00, and the variance is −1,400.00. Its group 03B Camera, Grip & Sound also has −1,400.00.
For a cost you expect but have not booked yet, you can also raise a forecast by hand. Account 4.02 has no cost items. Someone raised its forecast by hand to 20,300.00. See [how a forecast is formed](/kb/article/how-a-forecast-is-formed).
An account without cost items, whose forecast nobody has changed, shows *-* in **Variance**, **Paid** and **Expected**. **Free** then shows the whole budget. In the demo project this is account 2.02 Lead Actor 2.
The dash means that nothing has happened on the account yet. It does not mean that the account will stay within its budget.
Budgeting has a **Variance** column too, but it compares two other figures. It is hidden at first. To show it, click **Show or hide columns** (the three dots above the **Account Details** column). Under **Columns**, click **Original & Variance**.
In Budgeting, **Variance** is the current total minus **Original**. **Original** is the total the account had when the budget was created. If a total grows, the variance becomes positive and KOSMA shows it in red. In the demo budget How KOSMA Calculates, account 101 has an original of 1,000.00. At a quantity of 2 instead of 1, the total is 2,000.00 and the variance 1,000.00.
| Module | Variance compares | Red when | Answers | | ------------ | ----------------------------------- | -------------------------------- | --------------------------- | | Budgeting | the current total with **Original** | the total is above **Original** | How has the plan changed? | | Cost Control | the budget with the forecast | the forecast is above the budget | Will the account cost more? |
In Budgeting, a cost increase makes the variance positive. In Cost Control, it makes the variance negative. Before you compare two variance figures, check which module each one comes from.
A negative variance has one of three causes.
- The bookings are above the budget, as with 3.08 Gaffer. Plan where the extra money comes from. - Someone raised the forecast for a cost you no longer expect. Lower the forecast again. - A cost item is on the wrong account, so another account shows a positive variance. Move the item to the right account.
To change a forecast, see [how a forecast is formed](/kb/article/how-a-forecast-is-formed). To move a cost item, see [move cost items to another account](/kb/article/move-cost-items-to-another-account).
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