Royalties
Our Financial systems provide the tools required to keep management informed on the state of the business and confident that the correct controls are in place to protect the stakeholders ensuring informed decision making and success.
The Online Advantage Royalties module covers the requirements of manufacturers and distributors who pay a royalty to a third party based on the movement of stock lines under contract.
The Royalties module also caters for non-product related royalties. For example, an advance paid to an artist prior to a contract attracting a royalty.
Features
- Contract Maintenance — catering for the establishment of an unlimited number of Royalty Contracts with one or more product lines
- Royalty Recipients – allows you to record who the Contract is with, per Creditor and to have optional Royalty Recipients on file to split out a contract into individual recipient sections
- Other transactions – is a facility to include other “financial” transactions onto a Royalty Statement and list such items as advances or agreed product expense claims
- Accounts Payable Interface – sees the Royalty system automatically create invoices on the nominated contract creditor for the value of the royalty statement so these can be paid in due course without additional processing by your payables staff
- Automatic Calculation – a variety of royalty calculation methods to be used per contract per product line
- Statement Generation – including optional faxing/emailing of Royalty Statements and Remittance Advices
Functions
- Royalty Contracts Maintenance– covers the following details:
- Entry of the Creditor/Payee for use in Accounts Payable
- Optional Recipient Entry
- GL account to be used to take up the Royalty Expense
- Contract Start and End Dates
- Payment/Royalty Reporting frequency in months
- Next Payment Date
- Freeform Text/Contract Comments of unlimited length
- Unlimited Products with Royalty calculation method per product
- Royalty Calculation – the following calculation methods are available:
- Percentage of a Nominated Nett Price
- A Fixed Value per Quantity Sold
- A Percentage of a Nominated Price List Value
- Calculation Method – select from three types of sales as follows:
- Normal Sales
- Special Sales
- Nominated Buying Group Sales
- Creditor/Recipient Reporting – this module comes with a series of standard reports by contract creditor and contract recipient. A selection of the reports available is listed below:
- Royalty ledger
- Royalties due for payment
- Royalty transactions
- Royalty details
- Interim transactions
- Interim details
Benefits
- Time Savings – once setup, the Royalties system never misses a transaction as it generates your contractual liabilities without any additional human intervention
- Audit – the royalties module provides a central place for performance or contract review with historical reporting and transaction details
- Control – having an online and integrated royalties system keeps you in control of your financial commitments as you go rather than having the expense suddenly hit your P&L in an ad-hoc way as time permits to manually calculate your contractual exposure