Royalty contracts often have a reserve for returns clause. This clause withholds a percentage of royalties earned to account for future returns that the licensee (publisher) expects to receive from current period sales. The reserve may be flat amount or it can change over time. [Read more…]
To prepare your royalty software for the year end calculations check the data for accuracy and completeness. Failure to do so may result in royalty expenses that are too low or too high. [Read more…]
The royalty manager is responsible for forecasting the cash required to pay royalty related expenses. This includes projecting payables for royalties payable and royalty advance payments.
The royalty administrator is responsible for ensuring that the royalty software data is protected against loss. Recovering from a data loss is expensive and time consuming.
Hard drives are mechanical devices which will fail at some point in their life. Computers can be damaged by power surges. Laptops can be stolen. Backup devices can fail and online backup services can go out of business. [Read more…]