Determine Royalties. A floating amount is a percentage or dollar amount associated with unit sales of the book.
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1 Determine Royalties Royalties are the amounts paid to an author or organization assoiated with a produt and its supplements. The amount paid is always a ombination of a fixed amount and a floating amount. A fixed amount is paid on events, like the signing of a ontrat, publishing of a title, et. Quik Tip When you lik the Editorial tab, and then lik the Royalties tab, the Summary sreen appears by default. A floating amount is a perentage or dollar amount assoiated with unit sales of the book. Royalties are omputed by hannel. Royalties for domesti hannels are alulated ompletely differently than international hannels. For international hannels, type either a perentage or dollar amount for eah hannel for eah payee; this is applied to the estimated net revenues or estimated net sales respetively to determine the royalty amount. For domesti hannels, royalty information is entered as one or more steps of inreasing royalty rates depending on the foreast sales. The steps may be entered as a perentage of revenues or a straight dollar amount. The alulated royalty amounts are determined by terms ontrolled by how the steps are applied and what years are used to alulate the royalties. 1 Clik the tab and then lik the sub-tab. The Royalties sreen appears defaulting to the Summary sreen option. Additional sreen view options an be aessed from the View drop-down menu. 1
2 Summary Sreen 1 The Summary sreen summarizes the royalties for the produt. a b a Selet the Summary option from the View drop-down menu. b To view the royalty information for a partiular payee or total royalty, selet Payee or Total from the PAYEES drop-down menu. Notes For an individual royalty, the system will display the names of all payees in the Payee drop-down menu. For a ombined royalty, the system will display the distint list of all payee types in the drop-down menu. Summary sreen field desriptions: a Opening Advane Balane: This is the unearned advane of the previous year. For the first year, it is zero. a 2
3 Royalty Advanes: This amount is manually entered on the Summary sreen in the Payee view. Advanes an only be paid in years prior to the opyright year. The Royalty Advane field is editable for all types of payees, but is a read-only field when the Total option is seleted from the drop-down menu. d Royalty Advane Earned: If (Royalty Earned Against Adv <= (Opening Advane balane + Royalty Advanes)) Royalty Advane Earned = Roy. Earned Against Adv Else Royalty Advane Earned = Opening Advane Balane + Royalty Advanes e Unearned Advane: If (Roy. Earned Against Adv <= (Opening Advane balane + Royalty Advanes)) Unearned Advane = Opening Advane Balane + Royalty Advanes Royalty Earned Against Advanes Else Unearned Advane = 0 d e 3
4 Royalties Earned: f International: Represents yearly royalty earned for International hannels from Royalties setion. g Domesti: Represents yearly royalty earned for Domesti hannels from Royalties setion. h Non-Cap Grants and Outright: This amount is manually entered on the Summary sreen in the Payee view. This field is editable for all types of Payees, but is a read-only field when the Total option is seleted from the drop-down menu. i j Royalties per P&L: Royalty for Domesti Channels + Non-Capital Grants and Outright. You an view the royalty information for a partiular payee or total royalty by seleting Payee or Total from the Payee drop-down menu. Opening Advane Balane: This is the unearned advane of the previous year. For the1st year it is zero. f g h i j Payees Sreen This sreen lists the payees. By default, all the authors assoiated with the produt are listed as payees. You an assoiate, disassoiate, replae, or reate a plaeholder payess on this sreen. 4
5 Assoiate a Payee 1 To assoiate a payee, lik the button. 2 The Assoiate Payee dialog box appears. a Enter the appropriate searh riteria b Clik the button. Selet the appropriate payees from the searh results, d Clik the button. a b Notes When you disassoiate a payee, all royalty foreasts for the payee are removed. When you disassoiate an author of the produt from the payee list, the author is not disassoiated from the produt. 5
6 3 The dialog box loses. a The seleted payees display on the Payees sreen. b Clik the button to save your seletion. a b Disassoiate a Payee 1 To disassoiate a payee, selet the payee(s) from the list, and then lik the button. 2 The Are you sure you want to delete the seleted row(s)? warning appears. Clik the button to disassoiate the payee. 6
7 Plaeholder Payee You an reate a plaeholder payee to ontinue to define royalty without having to wait for the final list of payees assoiated with the produt. To reate a plaeholder payee at any point in time, you an use the Replae Payee feature to replae the plaeholder payee with the desired payee. 1 To reate a plaeholder payee, lik the button. 2 The plaeholder payee appears in the payee list. Plaeholder payees are sequentially numbered: Plaeholder Payee 1, Plaeholder Payee 2, et. Clik the button to save your seletion. 7
8 Replae Payee You an replae an existing or plaeholder payee with a new payee. The original payee s defined Royalty Foreast moves to the new payee. The original payee is not disassoiated from the Payee list. 1 To replae a payee, selet the payee(s) in the list, and then lik the button. 2 The PCS Searh dialog box appears. a Enter the appropriate searh riteria. b Clik the button. Selet a name from the searh results. d Clik the button. a b d 8
9 3 The payee is added to the list and appears on the Payees sreen. Clik the button to save your hanges. Royalty Terms To foreast royalty, define royalty steps or tiers on the Royalty Terms sreen: 1 Selet the Royalty Terms option from the View drop-down menu. The Royalty Terms sreen appears. 9
10 2 Selet the appropriate fields from the available drop-down menus: a Foreast Type: Individual Royalty Individually for eah payee. The system displays the names of all payees in the Payee drop-down menu. Combined Royalty Rolled up for eah payee type. The system displays a list of all payee types in the Payee drop-down menu. b Payee a distint list of all payee types [ie. Author(s)]. Payment Units Selet Dollar or Perentage from the drop-down menu. Dollar allows you to foreast on dollars per unit. Perentage applies to net dollar sales. d Terms You an foreast Royalty as Retroative, Enter by Year, for the Life of Edition, Foreast Period, or Copyright Year, and also by Reserve perentage. If you selet the Enter by Year option, a Royalty Esalators option appears. e Regular Sales A business unit an ategorize a group of Sales Channels as Regular Channels on whih same royalty esalators will be appliable. This list is onfigurable at a Soure level. f Other Sales All other hannels whih are not ategorized as Regular Channel fall into this ategory. There will be a default value populated for these hannels based on the Soure. a b d Quik Tip Clik the button or the button to add/remove steps to the Regular Sales panel. e f 10
11 Foreasted Net Sales Sreen 1 Selet Foreasted Net Sales option from the View drop-down menu. This sreen displays the Channel-wise Net Sales Units and Dollars for all the Sales Foreast Periods and Payees. You an view the Net Sales Units and Dollars at eah payee level or view the rolled up Net Sales Units for all the Payees. 11
12 Royalty Per Payee 1 Selet the Royalty Per Payee option from the View drop-down menu. This sreen displays the Channel-wise Royalty and the Royalty Rate for all the Sales Foreast Periods and Payees. You an view the Royalty at eah Payee level or you may hoose to view the rolled up Royalty for All the Payees. Payment Shedule Sreen 1 Selet the Payment Shedule option from the View drop-down menu. The Payment Shedule sreen appears. Here, you an plan for any bonuses for payees. You an also view details of any payments made to a payee. 12
13 2 Clik the button to add a payee to either the Payment Shedule or the Bonus Shedule setion. 3 A new row appears. a Selet the appropriate payee from the drop-down menu. b Type a desription in the Event text box. Type a number in the Doument text box. d Type a dollar amount in the Amount text box. e Clik the alendar ion and selet the appropriate date for the Date Payment Released text box. f Clik the button. a b d e f 13
14 4 To delete a row: a Selet the row. b Clik the button. Clik the button. Quik Tip The text boxes in a row must be empty in order for them to be deleted. You an lik the button to go to your last saved version. a b Note Use the to remove rows. button NOTE If you mistakenly delete a row, lik the to your last saved version. button to return 14
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