This tutorial explains how to set up ROYALTY CONTRACTS based on tracks, for example for compilations. If you want to create a royalty account based on artists' account see SET UP NEW ROYALTY CONTRACT - ARTIST RELEASE.
''Shortcuts:''
* Contract and item share on 50 / 50 deals
On LABEL / RELEASES, you can choose the release which you want to set up contracts for.
Go to the subtab PRODUCTS, where you can see the different tracks by multiple artists on the right. Each artists should be paid royalties for their tracks and additionally for the bundle sales based on their rata.
Select the product you want to set up the royalty contracts for and go to the subtab PRODUCT / TRACKS to find out the shares, e.g.
Artist A contributed 2 out of 3 tracks and therefore gets 2/3 of each product sold and Artist B gets 1/3 in terms of this royalty contract.
In order to set up the contract, go to LABEL / ROYALTY, search for the artist's ROYALTY ACCOUNT and go to its subtab CONTRACTS.
If you haven't set this up yet, see here how to add a new ROYALTY ACCOUNT first.
Now to create a new ROYALTY CONTRACT, click [+] and type in the NAME OF THE CONTRACT, the percentages of physical, digital and licensing incomes and confirm with OK.
You will be directed to the contract's subtab CONTRACT ITEMS.
To select the tracks that are part of this contract, click [+] again and choose from the list. Make sure to adjust the share percentage accordingly if the track is part of several ROYALTY CONTRACTS (e.g. two separate artists are rights holders and have contracts with you).
The AUTO FILL FROM TRACKS (COMPILATION) button adds all the products with their specific rata. Select products for the activation of the cost split.
The RELEASE needs to be added manually, just click on [+] on the Release box and select from the list.
Now you can define and enter the share of the RELEASE that belongs to this ROYALTY ACCOUNT.
Normally, you would choose the product promising the most income e.g. the digital release, and calculate:
Product Share x rata1 : rata2 = Release Share
On the next subtab ROYALTY RATES you can see the rates you have previously entered, adjust or complete these by clicking edit in the particular lines.
You can enter detailed royalty settings like territories, accounts, deductions, adjustments etc. and add multiple royalty rates, e.g. different royalty rates on downloads and streaming.
To do so click on the edit button of the first option and change the usage type to download.
Then add a new option by clicking the green PLUS icon on top right of the digital section and add a royalty rate and choose the usage type stream.
Every recorded sale is now checked whether it fits under rule 1: download and if not it will be accounted according to rule 2.
The next step is to set up the contract's RECOUPABLES. On the subtab RECOUPABLES you can manage all these settings as well as reserves.
Choose a RECOUPABLE TYPE from the drop down menu.
There are three 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 enter 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.
To set up a reserve, just click on the green PLUS icon on top right of the Reserve Setup box and type in the percentage, the extra months amount as stated in your contract and choose a type wether accounted on net amount or by catalog number.
At last you will find an overview of past ROYALTY STATEMENTS created in details for this royalty contract on the subtab STATEMENT HISTORY.
Now you have successfully set up your contract. Next steps will be:
IMPORT SALES
CREATE ROYALTY STATEMENT
Set up new ROYALTY CONTRACT - COMPILATION
