Film Accounting Glossary
Holdback
What is a holdback?
Also called retention, or retainage.
A holdback is money withheld from a payment until a condition is satisfied, most often a percentage of a vendor's or producer's fee retained until delivery is accepted.
Distributors hold back final payments against deliverables; productions hold back against vendor punch lists and damage. Holdbacks are receivables on the production's books and need tracking, because unclaimed holdbacks are a routine source of money left behind at wrap.
Example
A distributor holds back 15% of a $900,000 minimum guarantee until deliverables are accepted, so $135,000 sits uncollected for four months. It is a receivable, and unclaimed holdbacks are routine money left behind at wrap.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Tracked as a receivable on the production's books, against a punch list of delivery or vendor conditions.
Common mistake
Not tracking holdbacks as receivables. Money withheld against a punch list is money owed, and unclaimed holdbacks are routinely left behind at wrap.
Related questions
- What is a holdback on a film payment?
- A percentage withheld until a condition is met, most often part of a distributor's payment retained until deliverables are accepted.
- How do productions recover a holdback?
- By closing out the condition it was held against, usually delivery acceptance or a vendor punch list, then invoicing for the retained amount.