Locked budget: Meaning in Film Production

Locked budget

Definition

A locked budget is the final approved version of a production budget, fixed at the point financing closes or the studio or completion guarantor signs off. It becomes the baseline column on every cost report, and any later changes are recorded as approved transfers or overages rather than edits to the locked numbers.

Why it has to stay fixed

If the budget changes every time an account runs over, variance disappears and nobody can tell whether the film is on track. Locking the budget gives the cost report a fixed reference point. The same logic as a locked script: after the lock, changes are tracked as revisions.

How changes are recorded

Say the budget was locked as version 7 on March 2. In week 2 of shooting, the director adds a night exterior that needs a condor, two extra electricians, and a location fee. The producer approves $18,500 from contingency. The camera department also comes in $4,000 under on lenses, and the UPM moves that to grip.

Acct	Description	Locked (v7)	Transfers	Approved changes	Current budget
3300	Camera	$118,000	($4,000)		$114,000
3400	Grip	$41,000	$4,000		$45,000
3500	Electric	$52,000		$9,200	$61,200
3600	Locations	$64,000		$9,300	$73,300
9800	Contingency	$75,000		($18,500)	$56,500

The approved changes sum to zero across accounts: $9,200 + $9,300 - $18,500 = $0. The locked total is unchanged, and the report shows exactly where contingency went and why.

Getting to a lock

Final shooting schedule, since days drive most costs.
Deals closed or priced for all above-the-line and department heads.
Fringe rates confirmed with the payroll company.
Insurance and bond quotes in hand.
Review by the financier or completion bond guarantor, whose notes often add days or money.
Version number and date on the top sheet, signed off by the producer.

How a lock gets broken

Continuing to edit the budget file after the lock and overwriting v7, so the original is lost. Locking a budget built on an old schedule. And moving money between accounts without any record, which a guarantor or tax credit auditor will find. The production accountant should keep the locked version as a read-only file and build every report from it.

Frequently asked questions

When is a film budget locked?

Usually when financing closes, or when the studio or completion guarantor approves it, typically during prep after the schedule is final. On small unfinanced indies, producers lock it themselves before the first major commitments.

Can you change a locked budget?

You don't edit the locked numbers. You record changes: transfers between accounts, approved additions, and overages, each with an explanation, so the cost report shows both the original budget and the revised one.

What's the difference between a locked budget and a working budget?

The locked budget is fixed for reporting. A working budget, or current budget, reflects approved changes since the lock and is what the production is actually managing to.