In DETAILS, the handling of royalty statement results across periods is done mostly automaticly, but deserves some explanation:
Automatic Carryover
Royalty statement results are carried over to the next periods under the following conditions:
– The overall period result is negative.
– The overall period result is less than the minimum payment threshold specified in the royalty account settings.
For instance, if the overall period result is -1000 EUR or +30 EUR, both would be automatically carried over as an opening balance to the next period if the minimum payment threshold is set to 50 EUR.
Conversely, total period results equal to or higher than the minimum payment threshold would not be carried over, as DETAILS assumes they are due for payout by default.
Consideration of Cross-Recoupable Contracts
Additional complexity arises when cross-recoupable contracts are involved. Selected contracts may be set as to not be payable unless the overall total of all cross-collectable contracts collectively recoups and exceeds the minimum payout threshold. Further information on cross-collectable contracts can be found in our dedicated article here.
Manual Setting of Opening Balances
DETAILS provides the flexibility to manually include amounts for carryover to royalty periods. This feature is useful when statements were calculated before manually or in another system.
Initial amounts can be entered either at the level of Royalty Contracts or in the Royalty Account as Balances, with the type set as “Closing Balance”.
The date of the balance should correspond to the first day of the period you want the balance to be included in as an opening balance.