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R&P – Payments

Introduction

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

Business rules

Business rules for 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 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-APIF A/P interface – Definition Setup AP interface definition and minimum payment amounts by company as applicable.
TMSRY/RY-RGRP Royalty Contract Groups Setup royalty groups, supress AP interface if required, allow minimum royalty payment overrides if required.
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 that may apply 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 territories.
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  codes.
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 Rights & Permission 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 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.

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.

 

 Process Steps
Create/setup works All works must be defined and linked to a product before royalty contracts can be created for it.

  1. In the menu, expand Publishing Modules > Rights & Permission > Maintenance and double-click Works Management. DSW020 Work with Works selection panel appears.
  2.  Click Add. You can specify the Works ID or leave it blank to be automatically generated by the system.
  3. 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.

  1. 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.
  2. 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
  1. 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 or items. If an item is entered then work will be automatically created and allocated to that item and the subsequent contract will have the work linked.

(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  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:

  1. In the menu, expand Publishing Modules > Rights & Permission > Management and double-click Work with Royalty Contracts .
  2. Select the contract for the advance payment and right click Payee share.
  3. Select the payee and right click Advance details.
  4. On the Advance Details panel, click Add and enter the advance details by sequence number.
  5. 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:

  1. In the menu, expand Publishing Modules > Rights & Permission > Management and double-click Milestone Management.
  2. 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;

  1. In the menu, expand Publishing Modules > Rights & Permission > Period Processing and Others and double-click Copyright Agency Licence.
  2. 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.

  1. In the menu, expand Publishing Modules > Rights & Permission > Period Processing and Others > Monthly Royalty Run and double-click Royalty Sales Interface. RYO053 Royalty Sales Interface panel appears.
  2. 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.
  1. Run Royalty movements monthly rebuild (Refer to RYO051 Movements Monthly Rebuild)
  2. Run Royalty accruals calculations (Refer to RYO180 Accrual Calculations)
  3. Review royalty accruals report (Refer to RYR181 Accruals Report)
  4. Make any adjustments as required. Adjustments can be made to royalty rates, price basis, and movement quantities (RYM200 Sales/Movement Adjustments)
  5. 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.
  6. Post accruals to GL. (Refer to RYO185 Accruals Post to GL).
  7. 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.
  1. Run the Movement Consolidation program to group royalty transactions into a specified royalty period. (Refer to RYO081 Royalty File Summarisation)
  2. 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)
  3. Review trial balance (Refer to RYR061 Trial Balance Spreadsheet)
  4. Print royalty statements. (Refer to RYR035 Royalty Statement Print)
  5. 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)
  6. Any held payments can be released for payment via Release Royalty Unpaid Balance. The hold flag on the creditor masterfile must be turned off to release held payee payments. When released for payment the system will reverse the unpaid GL journal/s for the selected payee and create AP invoice/s and interface to AP system.
  7. Run RYO095 Royalty Balance Carried Forward program to create the opening balance for next Royalty period.
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