Movements maintenance links the contract to an appropriate Movement type. Various Movement types may apply and their order of preference is determined through the use of the sequence field. If a transaction does not meet the criteria as defined for the first Movement type, the next Movement type is referred to, and so on.
Applicability details can be entered via the Movement applicability option, providing the facility to determine when the sales extract instructions are to come into effect, if notice is required, and if so, how many days notice, and who should be notified. Any comments or notes can be entered in the Text file of the Movement type.
In order to calculate Royalties, the system combines the transaction quantity with the Unit price and an applicable Royalty rate. The user is able to define which Unit price is to be used in the calculation routine, by entering the appropriate Price basis code. This code identifies whether the system is to refer to the recommended retail price, the price when the ISBN was received, or the average selling price of the ISBN. Different Royalty rates and Price bases may come into effect, applicable to specified transaction quantities. This requires the user to complete one or more fields of the Stepped royalties section.
An example of a Rising Royalty requirement is the author is entitled to a certain percentage royalty for the first print run of books. The publishing company needs to recover the costs involved in publishing the book and may decide to pay the author a smaller percentage royalty on the first run and recover a large proportion of the costs. For the second print run, the author is given a higher royalty percentage as costs have been recovered from the sales made from the first print run. The Steps are therefore Print Runs and Print Runs relate to a number of copies of a book printed.
A Movement type’s total transaction quantity can be combined with the total transaction quantity of another selected Movement type to create a new sales total. An example could be local and export sales quantities must be added together as they come from the same print run but different royalty rates are applicable. If the quantities are added together then the criteria of applicable rates per Print Run are met. This is set up in Movement Maintenance.
The Royalties statement displays all stock movements, royalty calculations and totals during a particular period. The system offers the facility to select the Movement type details to be printed on the statement. If it is decided to omit transaction details, a Movement type can be nominated to absorb the resulting stock movement discrepancy.
Add movements to contracts
- In the menu, expand Publishing Modules > Rights & Permission > Management and double-click Work with Royalty Contracts. RYW010 Work with Royalty Contracts selection panel appears.
- Enter the selection variables and click OK. The selected royalty contracts are displayed.
- Select the royalty contract and right click option Movement. RYM120 Movements Maintenance panel appears.
| Note | Movements Maintenance panel would appear automatically on contract creation to allow entry of applicable movement types for the contract. |
| Field | Description | ||
| Sequence |
Multiple Movement types may apply and their order of preference is determined through the use of the Sequence field. When the Royalty calculation is performed it reviews each transaction detail and matches it to the Movement types in sequence to determine into which bucket the sales value must be posted. If a transaction does not meet the criteria as defined for the first Movement type, the next Movement type is referred to, and so on. If the sequence of Movement types is not set up correctly, a higher or lower sales value could be calculated resulting is a higher or lower royalty value being paid out. If there are overlapping conditions in the Movement type definitions, the first bucket to meet the criteria is selected. The sequence also defines the order in which the Movement type details print on the Royalties Statement. |
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| Type |
This field identifies the Movement type applicable. Multiple Movement types may apply and their order of preference is determined through the use of the sequence field. The sequence of Movement types would probably be high discounts and remainder sales and other special conditions and then normal sales. If there is no overlap in conditions the sequence is not as critical. Royalties are probably not paid on certain Movement types where no profit is made, for example when stock is being offloaded as a Remainder sale. If Sales and Returns are to be shown separately, two Movement types must be created. A consolidated movement group as defined in control file TMSRY/RY-MVTGP can be entered. The linked movement types (TMSRY/RY-MVTLK) as defined in the movement definition would apply. |
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| Description | Description of the selected Movement type. | ||
| Basis per step |
The Price Basis code is required to define the unit price on which the royalties are to be calculated. A Basis per Rise (number of copies) as well as a basis per Movement type can be entered. The Net Value is the RRP net of discount. The Average Selling Price is similar to the RRP except the total value is divided by the total quantity to determine the Selling Price. The United States uses code 4 Prevailing rate. For export sales they use the current local Prevailing rate and nominate a Percentage of the local prevailing rate. For example: 90%, as the export rate. Code 5 Amount per Unit is a flat amount. Code 6 Recommended Retail Prices less Tax is used by New Zealand as the GST is not to be included in the price.
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| Rates per step | This determines the royalty rate to be calculated for each step. In the example of 10% royalties for the first 5000 copies sold and 12% for the next 5000 copies sold, the 10% is entered in the Step 1 Rate field and the 12% is entered in the Step 2 Rate field. | ||
| Stepped royalty quantity |
The Stepped or Rising Royalties function allows for different Royalty Rates and Price bases to come into effect, based on predefined transaction quantities. In order to calculate royalties the system uses the transaction quantity, combined with a given unit price and royalty rate. If it is a flat rate, not dependent on the number of copies sold, these rises do not have to be completed For example 10% royalties on the first 5000 copies sold and then 12% on the next 5000 copies sold. The first 5000 is entered as the quantity for step 1 and the second 5000 is entered as the quantity for step 2, etc. The various steps could be print runs and the quantities the number of copies printed in the print run. |
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Print flag per Movement type determines whether to print or omit particular movement details on the Royalty statement. A Title’s Royalty statement displays all stock movements, royalty calculations and totals for a particular period. The system offers the facility to select which Movement type details are to be printed on the statement. If it is decided to omit transaction details, a Movement type can be nominated to absorb the resulting stock movement discrepancy. |
| Option | Description |
| Movement appl | Accesses RYM150 Movement Applicability Maintenance to maintain a movement’s applicability. |
| Text | Accesses RYM100 – Royalty Movement Text to maintain text for a royalty movement. |
| Movement defn | Accesses RYM050 Royalty Movement Definition Maintenance to inquire on a movement definition |
| Override | Accesses RYM050C – Movements Definitions Maintenance. This option is only available for movement types that are defined with *IMS against the selection field. |
- On a new line, enter the sequence number and select a movement type other than the existing ones.
- Enter the above information for the movement type and click OK.
| Note | Collection contract movements can also be setup with step quantity and rates as the sales charge is based on historical accumulated sales. The step will be estimated on sales upload and will be re-stepped again when finalised (transfer) to ensure stepping by confirmed sales. |
