The calculation of royalties depends largely on the terms of the license agreement and the resulting accounting rules.
Put simply, royalties are calculated by multiplying a sales quantity at a specific base price with a royalty rate. A simple example would be 1.000 CDs * 7 € PPD * 20% royalty rate = 1.400 €.
However, if royalty calculation was always this simple, there would be no need for a database solution like detəils. This article shows you how to set up more complex rules for royalty calculation correctly.
In detəils you can manage rules for royalty calculation separately for each channel
- physical sales
- digital sales
- licensing / thirdparty revenue
- performance revenue
Each channel can have one or multiple rules or royalty options as we call them.
Please check below to find out ...
how to set royalty rates for digital sales
how to set royalty rates for physical sales
how to set conditions for royalty options