This tutorial explains how to set up a royalty contract based on artists, for example for artist albums. If you want to create a royalties account based on tracks, for example for compilations see SET UP NEW ROYALTY CONTRACT - COMPILATION.
Watch a TUTORIAL video about how to create ROYALTY ACCOUNTS and CONTRACTS for artist releases here.
''Shortcuts:''
* Contract and item share on 50 / 50 deals
First go to LABEL / ROYALTY, click on the account you want to set up a new contract for and go to the subtab CONTRACTS. Then click [+] to type in CONTRACT NAME and enter the percentages of physical, digital and licensing income, confirm with OK.
You will be directed to the CONTRACT's subtab CONTRACT ITEMS where you can add related items either with the auto fill option or manually.
To use auto fill first select the release that is part of this contract in the RELEASE box as described above.
The AUTO FILL FROM RELEASE (ARTIST ALBUM) button now adds all related products and tracks with their specific rata to this contract.
On the next subtab ROYALTY RATES you can see the rates you have previously entered. Here you are able to adjust or complete these by clicking edit in the particular lines or adding additional options by clicking the green PLUS.
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.
The last step is to set up the contract's RECOUPABLES. On the subtab RECOUPABLES you can manage all these settings as well as reserves.
First 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 payment 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.
To set up a reserve, just click [+] 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 whether accounted on net amount or by catalog number.
On the subtab STATEMENT HISTORY you will find an overview of past ROYALTY STATEMENTS created in details for this royalty contract.
On the subtab SPECIAL you find a special AUTO FETCH function for labels and suppliers which automatically adds related items to the contract.
To activate auto fetch for labels click [+] on top right of the box and choose label and the label you want to activate it for.
If you now click the button AUTO FETCH below the box, all related releases, products and tracks of the label will be added to the contract.
You can double check on the subtab contract items.
You can also activate auto fetch for suppliers. Suppliers can be assigned in the PRODUCTS / OVERVIEW subtab.
All products (and related tracks) assigned to this particular supplier will then automatically be added to the contract.
Now you have successfully set up your contract. Next steps will be:
IMPORT SALES
CREATE ROYALTY STATEMENT
Set up a ROYALTY CONTRACT - ARTIST RELEASE
