General Ledger  Royalties & Commissions  Recurring Royalties

Recurring Royalties Overview

A Recurring Royalty is a record link to a single recurring line which contains information as to whom and what amount should be paid to an employee or a vendor each time the recurring line is cycled and the invoice is posted.  The User setting up the Recurring Royalty record has the option of posting the Royalty transaction to the GL or to just have the information available for use when ready to write checks for Royalties due to Employees or Vendors.

The User also has the option of deferring a Recurring Royalty.  If this option is selected in the Recurring Royalty record setup, if a customer is cycle for a period other than monthly, the Royalty amount will be divided up into monthly amounts for each month within the service period being cycle invoiced.  For example, if a customer was cycled for the service period of October through December(quarterly), and the monthly Royalty amount is $5.00, three Royalty records will be created for $5.00 each; October, November and December.

Recurring Royalty records may be setup for Employees or Vendors. 

Recurring Royalty for an Employee

An Employee receiving a Recurring Royalty is typically the Salesperson for the customer.  Some companies pay a monthly Royalty to a Salesperson as an incentive for the Salesperson to keep the customer happy and continue with recurring services with your company.  Since the recording of Recurring Royalties due is based upon posted cycle invoices, if the customer cancels recurring services, the Recurring Royalty ends.

Recurring Royalty for a Vendor

Recurring Royalties may be setup for a Vendor.  The Vendor may be an outside sales consultant or a Vendor your company has agreed to pay a royalty for a particular type of recurring service.  For example, your company is selling medical monitoring services.  Your company is leasing the medical unit from a Vendor; each month your company pays the Vendor a Royalty for all units in service.  By setting up a Recurring Royalty for the Vendor, each time the customer is cycled, a Royalty due record will be created for the Vendor.