Adjusting a film hire contract

Contracts and distribution terms for a film often change during or after its run. You can adjust the film hire contract to account for these changes, even if the film hire records have already been exported for invoicing. 

When you adjust the distribution terms for a contract, the system makes the following changes to existing film hire records:

• Current film hire records (not yet exported): The film hire is recalculated based on the new distribution terms. Current film hire records are updated to match the new terms.  
• Exported film hire records: The film hire is adjusted based on the new distribution terms. Because exported film hire records have already been invoiced, they cannot be updated. Instead, new film hire records are generated to represent the adjustments.

Example: A film brings in $10,000 in its first week. The initial distribution terms are 50% and you export an invoice for $5,000. Later the distributor agrees to accept 47.5% instead, so you adjust the contract retroactively and export a new invoice that changes your liability to $4,750.

Steps

To adjust a film hire contract:

1. Go to Head Office > Maintenance. 
2. Under Film Hire, open the Film Hire Payment form. 
3. To find the film you want to adjust, apply one or more filters and click Refresh.
4. Select the film hire record and click Adjust Contract.
5. Select the Cinemas, Weeks, and Invoices to adjust. 
6. Click Next.
7. The wizard displays the relevant film hire records and their current status. Review and click Next. 
8. Select the new distribution terms for this film. 
9. Select how to apply the adjustments:

   • Calculate Adjustments: Apply the new distribution terms to existing film hire records, but do not update the contract. Future film hire records will use the original contract terms. 

     Note: If you recalculate the affected current film hire records later, they will return to the terms in the original contract.

   • Calculate Adjustments and Update Contract with New Terms: Apply the new distribution terms to existing film hire records and update the film hire contract. Future film hire records will use the new distribution terms. 
10. Choose how the wizard will perform this update:
    • Adjust now: The wizard performs all calculations immediately and gives you a chance to review before applying any updates. This can take a long time, especially if there are many adjustments to calculate. 
    • Adjust in the background: The system calculates and applies all updates as a background task. 
11. If you selected Adjust now:
    1. The wizard calculates the updates that will be performed. Review the adjustments and recalculations, then click Next.
    2. Select whether you want to automatically flag the new adjustment records for export or manually review and flag them later. 
    3. Click Finish. 
12. If you selected Adjust in the background: 
    1. Select whether you want to automatically flag the new adjustment records for export or manually review and flag them later. 
    2. Click Finish. 
    3. You will see a notification when the updates are complete. 
13. You can see any new adjustment records in the Film Hire Payments list. When you're ready to invoice them, make sure that the Export To Invoices column is checked, then click Export Invoices. 

See also:

• Managing film hire calculations (overview)
• Exporting film hire records
• Film hire system settings