Cross-Collaterizations
What is Cross-Collateralization?
Cross-Collateralization is a contractual mechanism that allows the Organization to recoup Expenses, typically Advances or Fees, across multiple Contracts instead of recouping them independently on a contract by contract basis.
In practice, this means that outstanding balances on one Contract can be offset by revenues generated under other Contracts, provided that the underlying agreements allow it.
Cross-Collateralization is commonly used in recording and publishing agreements to consolidate recoupment across multiple releases, catalogs, or revenue sources such as recordings, works, merchandising, or live activities.
Cross-Collateralization in Reprtoir
By default, Reprtoir applies recoupment at the individual Contract level.
The Cross-Collateralization feature allows you to override this default behavior by grouping multiple Money Out Contracts under a single recoupment scope.
When Contracts are cross-collateralized:
- Expenses attached to any Contract in the group are recouped against the combined balances of the group
- Recoupment no longer stops at the boundaries of a single Contract
- Minimum payout rules can be applied at the group level
Cross-Collateralization does not change how royalties are calculated. It only changes how recoupment is applied after calculation.
Cross-Collateralizations List
Cross-Collateralizations are managed through a dedicated list.
To access the Cross-Collateralizations list, open the navigation menu on the left, click the "Royalty Accounting" icon, locate the "Legal" section, and click the "Cross-Collateralizations" list.
The list displays the following columns by default:
| Column Name | Description |
|---|---|
| Name | Name of the Cross-Collateralization group |
| Rights Holder | Rights Holder to whom the group applies |
| Money Out Contracts | Contracts included in the group |
| Minimum Payout | Minimum payout applied at group level, if any |
| Creation Date | Date the Cross-Collateralization group was created |
The list can be customized using Custom Columns if additional metadata is required.
Creating a Cross-Collateralization Group
To create a Cross-Collateralization group:
Open the navigation menu on the left, click the "Royalty Accounting" icon, locate the "Legal" section, and click the "Cross-Collateralizations" list.
At the top right of the list, click the "New Contract Group" button.
A panel opens to define the Cross-Collateralization group.
Details
| Field | Description |
|---|---|
| Contract Group Name | Internal name of the Cross-Collateralization group |
| Rights Holder | Rights Holder to whom the group applies |
| Contracts | Money Out Contracts included in the group (minimum two) |
| Minimum Payout | Optional minimum payout applied at group level instead of contract level |
When a group level minimum payout is defined:
- individual Contract minimum payouts are ignored
- recoupment and payout logic is evaluated at the group level
Click the "Save" button to create the Cross-Collateralization group.
The group becomes immediately active for all future calculations and recoupment operations.
Accounting Impact
Cross-Collateralization directly impacts how Expenses are recouped and how balances evolve.
When a Cross-Collateralization group is active:
- Expenses are recouped against the combined balances of all Contracts in the group
- Contract Balances remain visible individually
- Recoupment logic operates at group level
- Payments and minimum payout thresholds are evaluated globally
Cross-Collateralization does not modify past calculations. It applies only to calculations performed after the group is created or updated.
Important Considerations
Cross-Collateralization should only be used when it accurately reflects contractual reality.
Before creating a group, ensure that:
- all Contracts belong to the same Rights Holder
- the legal agreements explicitly allow cross-collateral recoupment
- financial reporting requirements are understood
Incorrect use of Cross-Collateralization can significantly alter recoupment behavior and payout timing.
Updated 6 days ago