Recoupables are costs which are paid against royalties. Typical recoupable costs are advance payments. Depending on your ROYALTY CONTRACTS also other costs such as video production costs or marketing expenses can be recoupable costs, mostly with a specific share e.g. 50% of costs are recoupable against royalties.
Your costs added in details are NOT automatically recoupable costs. Only once the relevant contract has a recoupable rate, your costs can be forwarded to your artists! If costs appear as NOT RECOUPABLE, the related contract has no recoupable settings enabled.
”Excursion”
WHERE AND HOW TO ADD COSTS in ”details”
How to upload cost documentation
So, to make costs recoupable you need to add costs in ”details” , set up the recoupable settings within the relevant contract and finally account current recoupables to the ROYALTY ACCOUNT before creating the ROYALTY STATEMENT so that royalties are set off against recoupable costs.
First you need to enter costs in ”details” , depending on where they occur.
On the RELEASES‘ subtab COSTS you can add all costs that occur for the release as a whole. Typical release costs are advance payments, marketing costs, artwork design etc.
On PRODUCTS‘s subtab COSTS you can now add all costs that occur for the particular product. Typical product costs can be CD manufacturing, LP manufacturing, etc.
To set up the RECOUPABLES setting of a ROYALTY CONTRACT go to LABEL / ROYALTY and choose the account and related contract.
On the contracts subtab RECOUPABLES you can choose a RECOUPABLE TYPE from the drop down menu.
There are the following options:
1) If advance payments and / or other particular recoupable costs are agreed on in your royalty contract, choose RECOUPABLE BY GROUPS.
Now click [+] on top right of the Costgroup Setup box and choose the cost group and the split e.g your contract includes an advance pament which is paid against royalties 100% you add the costgroup advance and give it a split of 100.
If your contract also includes a recoupable split of 50% on remix costs, just add the cost group Remix and give it a split of 50.
100% of the advance payment and 50% of the remix costs will now be paid against royalties.
It is essential that your costs have the correct COST GROUP. ”details” automatically identifies the costs by its cost group so that these will be accounted according to the above settings.
2) If all RELEASE RELATED COSTS and all PRODUCT RELATED COSTS are recoupable costs (e.g. 50/50 deal), choose GENERAL RECOUPABLES and type in the split.
Please note that advance payments have a default split of 100%. You can adjust the amount if necessary once it’s been accounted in the Recoupables Box right next to the Setup box or while you account the advance payment separately on RELEASE / COSTS.
3) If you do not have any RECOUPABLES included in your contract, choose NO RECOUPMENT.
Once you have entered the RECOUPABLES and set up / double checked the settings of the ROYALTY CONTRACT you can account them. ”details” will then automatically transfer all ACCOUNTED AMOUNTS to the related ROYALTY ACCOUNT.
There are multiple ways to account RECOUPABLES.
To account recoupables in a batch across all releases & products go to Royalty / Recoupables.
Select a start and end date of your current royalty period and add more filters if needed.
To account all, click the Account All Button at the bottom of the page.
To exclude single items of the compiled list, you can still tick IGNORE and these will not be accounted as recoupables.
Alternativley you can account single recoupable costs where you have previously set them up, e.g.
after you have added costs on the RELEASES subtab COSTS you can account them by clicking on the bold text ACCOUNT RECOUPABLES which will appear according to the royalty settings of the selected RELEASE. If it appears NOT RECOUPABLE instead, you will need to adjust the royalty settings.
It will be the same workflows for product related costs on the products subtab costs.
Once you have accounted the recoupables, they will be set off against royalties in your next royalty statement.