Contents

Introduction

Royalties Rights & Permission system is a fully integrated set of programs, designed to effectively provide the means to manage contracts by securing and recording the primary rights, subsidiary rights and permissions that have been requested by external parties within the system. It identifies the works associated with the contract along with the contractual details and the rights owner for the payment of royalties.

This document describes the setups and processes involved in the management and the processing of Payment contracts.

Business rules

Business rules for Royalties, Rights & Permission – Payments must be setup with support from Iptor IP1 consultants. It is critical to understand the setting of control files and how it works. Control files must be setup correctly for the system to operate as intended. Any changes to the control files setup should be addressed cautiously and in consultation with Iptor IP1 consultants.

Note	This document does not cover customised setup tasks of specific companies. Deviations from this setup should be covered by setup tasks written by individual companies.

View business rules

The following control files have been changed or newly created for the new Royalties Rights and Permission module.

Business rules	Setup
TMSRY/RY-ACCLS Royalty account set class	This is a system defined control file to classify the royalty account set into expense group and payee group.
TMSRY/RY-ACDEF Account set definition	Each royalty account set class has its own accounts which can be deactivated if required.
TMSDS/TM-STS Works status	This is a system defined control file that holds all the work statuses.
TMSDS/TM-CTYP Works content type	Define all the various types of work contents (information only).
TMSDS/TM-TYP Works type	This system defined control file differentiates between work and subwork.
TMSRY/CAL-MTYP CAL calculation method	Define the calculation method (CAL or Distributor sales) by movement types.
TMSRY/RY-CTYP Type of royalty contract	Define all the royalty types used by the system, with a short description.
TMSRY/RY-BMVT Royalty Basis of Movement	Change movement type to 6 characters.
TMSRY/RY-MVTGP Movement Group	Change movement groups to 6 characters.
TMSRY/RY-MVTLK Movement Link	Link 6 character movement codes to movement groups.
TMSRY/RY-OPT Royalty options	Setup Royalty tab options used by various Royalty payment contracts.
TMSRY/RY-MMF Royalty Movement Source Type	This system control file holds the various movement source types.
TMSRY/RY-PREVR Movement Types for Prevailing rate and Purchasing	Change movement type to 6 characters.
TMSRY/RY-RGRP Royalty Grouping	Add new column to suppress AP interface.
TMSRY/RY-TTYP Text type headings	Item has been removed from showing in any of the royalty text headings and text type CLT is added.
TMSDS/TM-ALFLD Content Search fields	Include search field ‘REF’.
TMSDS/TM-ALSET Content Alpha search set	Include prompt search fields TCTYP, TCCTP, LNGID, & STS.
TMSRY/UA-ACC User access – applicable accounts	Royalty user access has been changed to remove the Items levels and add Company group and Royalty group. All royalty processes are controlled by user access in TMSRY/UA-ACC and TMSRY/UA-ACT.
TMSDS/TM-CRT Automatic works creation	Set the flag to ‘1’ to always auto create work on item creation (without checking TMSRY/RY-HRCHY).
TMSRY/RY-ADVS Advance status	This system defined control file holds the different statuses of an advance payment.
TMSRY/RY-ADVT Advance types	Maintain all the different types of advances applicable to Royalties.
TMSRY/RTS-TMP Item rights template	Holds rights templates by item hierarchy, for automatic rights creation on item creation.
TMSRY/RTS-LNG Rights language	Maintain all the languages for the rights.
TMSRY/RTS-RECT Rights record type	This is the rights record identifier; granted rights or exploited subright (system defined).
TMSRY/RTS-STS Rights status	Holds rights statuses (system defined).
TMSRY/RTS-TER Rights territories	Maintain all the rights regions.
TMSRY/RTS-TER2 Rights territories	Maintain all the rights sub-regions.
TMSRY/RY-TYP Rights types	Maintain all the rights types.
TMSRY/RY-HRCHR Royalty Validation Rpt RYR075 – extra condition	Holds conditions for Royalty unallocated sales report.
TMSRY/RY-BCAL Basis of calculation	Update price basis type codes; price basis codes define the unit price for royalty calculations.
TMSRY/RY-SSTC Royalty subledger subtype code	Add subledger sub type code for subrights and add columns Subrights & Allow a/c override.
TMSRY/RY-SRGN Sales region	List of sales regions to allow for movements by sales region.
TMSRY/RY-SRGND Sales region details	List of customer regions grouped by sales region.
DS-ISTC International Standard Text Content	Setup the control number file for DS-ISTC for automatic generation of Works ID, if required.
RY-CTNO Royalty contract number	Setup the control number file for RY-CTNO for contract number generation.

Setup account sets

Setup the GL expense accounts to form the link between the Royalties module and the Accounts Payable/General Ledger systems

(Refer to Royalty Accounts Set for details on setting up royalty accounts sets)

Setup movement types

Movement Types are used by the system to determine which sales transactions are to be used in the calculation of Royalties payment. Sales extraction will extract the transactions based on the movement type and transfer to Royalties, Rights & Permission for calculation of royalty amounts payable to specified payees and agents.

(Refer to Movement Definition Maintenance for details on setting up movement types)

Setup templates

Templates can be created for contracts and subrights. Refer to Contract Template and Rights Template for details on setting up contract & rights templates.

Royalties R & P payments process

It is your responsibility to ensure that you understand this procedure before performing the following tasks.

Note	Deviations from this procedure should be covered by procedures written by your company. Before performing any tasks please ensure all the business rules are set-up accordingly.

View the process

Process

Steps

Create/setup works

All works must be defined and linked to a product before royalty contracts can be created for it.

In the menu, expand Publishing Modules > Royalties, Rights & Permission > Maintenance and double-click Works Management. DSW020 Work with Works selection panel appears.
Click Add. You can specify the Works ID or leave it blank to be automatically generated by the system.
Enter the work details. (Refer to DSW020 Work with Works for details of the required fields).

Link items to work

Multiple items can be allocated to a work.

In the menu, expand Publishing Modules > Rights & Permission > Maintenance and double-click Works Management. DSW020 Work with Works panel appears listing all the existing works.
Select the work to allocate items to and right click option Royalty item. DSW025 Work with Works Allocation panel appears. Any items already allocated will display with the allocated percentages. (Refer to DSW025 Work with Works Allocation for further details).

Note

A work linked to a product can not be deleted.

Create subrights for work

Follow the steps described in RYM190 Work with Rights.

Note

Subrights can also be added via the Works Management or from Work with Royalty contracts using option Rights.

Create Royalty contracts

Create Royalty contracts and link to the related works. Note: Royalty contracts now links to works instead of an ISBN.

(Refer to RYW010 Work with Royalty Contracts on how to create and maintain a contract and the related details)

Note

Royalty contracts can also be created in Book Production via Work with Book Specification. All contracts created in BP will pend awaiting approval via the Royalties, Rights & Permission module.

Manage milestones

Milestone management allows early payments or advances against a contract, which is offset against future royalties.

To enter an advance payment:

In the menu, expand Publishing Modules > Royalties, Rights & Permission > Management and double-click Work with Royalty Contracts .
Select the contract for the advance payment and right click Payee share.
Select the payee and right click Advance details.
On the Advance Details panel, click Add and enter the advance details by sequence number.
Click Release. When released the advance will appear in the Milestone Management panel for approval/rejection.

Note

If you do not want to release the advance to the Milestone Management panel click OK instead of Release.

To approve/reject/display an advance payment:

In the menu, expand Publishing Modules > Royalties, Rights & Permission > Management and double-click Milestone Management.
Select the contract with the advance and right click Approve/Reject/Display as required. The payment due date can be updated when approving. Once approved the relevant AP transactions will be generated.

For additional details (including field descriptions) for Milestone Management please refer to Milestone Management

CAL Processing

Each CAL upload into IP1 system is identified by a batch number, with the upload being either CAL or 3rd party payment (as configured in control TMSRY/CAL-MTYP). For CAL uploads if a payee is provided then the transaction will be treated as CAL direct and paid fully to the nominated payee otherwise it will be picked up by the system and split by creditors and the publisher based on the % split specified on the contract.

To upload and process CAL transactions;

In the menu, expand Publishing Modules > Royalties, Rights & Permission > Period Processing and Others and double-click Copyright Agency Licence.
Follow the steps described in RYM300 Work with CAL

GDM Processing

GDM processing is for sales transactions from 3rd party companies with subsidiary rights. These are uploaded into IP1 using an excel file and validated for royalty calculations. This must be run before monthly royalty calculations.

In the menu, expand Publishing Modules > Royalties, Rights & Permission > Period Processing and Others > Monthly Royalty Run and double-click Royalty Sales Interface. RYO053 Royalty Sales Interface panel appears.
Follow the steps described in RYO053 Royalty Sales Interface.

End of month Royalty processing

Note

All royalty processes are controlled by user access in TMSRY/UA-ACC and TMSRY/UA-ACT. For regional processing all users must be setup in TMSRY/UA-ACC and TMSRY/UA-ACT must be activated with undefined user default to No access).

Royalty monthly process can be included in DS EOM; EOM user must be setup with the appropriate companies in UA-ACC.

Run Royalty movements monthly rebuild (Refer to RYO051 Movements Monthly Rebuild)
Run Royalty accruals calculations (Refer to RYO180 Accrual Calculations)
Review royalty accruals report (Refer to RYR181 Accruals Report)
Make any adjustments as required. Adjustments can be made to royalty rates, price basis, and movement quantities (RYM200 Sales/Movement Adjustments)
If any adjustments have been made re-run 2 & 3 above and review the accruals reports again. This cycle can continue until the results are satisfactory.
Post accruals to GL. (Refer to RYO185 Accruals Post to GL).
Update payee balances. (Refer to RYO065 Payee Balances Update).

Note

End of month Royalty processing can be run as a batch process instead of running the above programs individually. Refer to RYO005 Batch Processing for Monthly Royalty run.

End of Royalty period

Note

End of Royalty Period is a manual process; appropriate user access must be setup before running this. Royalty group selection can be used for running logical batches.

Run the Movement Consolidation program to group royalty transactions into a specified royalty period. (Refer to RYO081 Royalty File Summarisation)
Update the royalty balances. This will recalculate and update all Royalty balances and can be run more then once. (Refer to RYO060 Royalty Balances Update)
Review trial balance (Refer to RYR061 Trial Balance Spreadsheet)
Print royalty statements. (Refer to RYR035 Royalty Statement Print)
Generate the interface between Royalties Rights & Permission and Accounts Payable. This will create invoices for amounts due for payment. (Refer to RYO070 Royalty Interface to AP)
Run RYO095 Royalty Balance Carried Forward program to create the opening balance for next Royalty period.