Film Accounting Glossary
Reallocation
What is a reallocation?
Also called budget transfer, or line transfer.
A reallocation is a formal move of budget from one line or department to another to cover an overage with an identified saving, leaving the total unchanged.
Reallocations keep a locked budget honest: the money is documented as coming from somewhere specific rather than from optimism. Studios and completion guarantors typically require approval above a threshold, and a pattern of reallocations into one department is a signal in itself.
Example
Set dressing comes in $60,000 under, construction $46,000 over. A documented reallocation moves $46,000 across, total unchanged, with both movements approved. A pattern of reallocations all flowing into one department is itself a signal.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Approved above a threshold by the studio or completion guarantor, and noted in the variance report.
Common mistake
Reallocating without naming the source. A transfer from an unidentified saving is just a re-typed budget with extra steps.
Related questions
- What is a budget reallocation?
- A documented move of budget from one line to another to cover an overage with an identified saving, leaving the approved total unchanged.
- Who approves a reallocation?
- The line producer within limits, and the studio or completion guarantor above an agreed threshold, with the movement noted in the variance report.