General Ledger Royalties & Commissions Recurring Royalty Setup-Vendor
Recurring Royalty Setup for a Vendor (continued)
Data Entry Fields
Amount - Enter the monthly dollar amount of the Royalty. If the recurring line is being cycled quarterly and the User enters the amount of $2.00, a Royalty will be generated for $2.00 for each month in the service period; i.e. a total of $6.00.
Deferred Royalty - If this option is selected, and the recurring line billing cycle is 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 $2.00, three Royalty records will be created for $2.00 each; October, November and December.
Vendor Royalty - Select this option.
Vendor - From the drop-down list, select the name of the Vendor to receive the Royalty.
Post to General Ledger - If the Royalty amount(s) is to be posted to the General Ledger when cycle invoices are posted for this recurring line, select this option then select the GL Account Numbers to use for the debit and credit side of the transaction in the next two fields.
Debit Account - This field is only available if the Post to General Ledger option was selected. Select the GL Account Number for the Debit side of the Royalty. This is typically an expense account such as Recurring Royalties.
Credit Account - This field is only available if the Post to General Ledger option was selected. Select the GL Account Number for the Credit side of the Royalty. This is typically a liability account such as Royalties Payable. When checks are written to the vendor, this GL Account is selected for the expense.
Start Date - Enter the date on which the Royalty will begin. This is typically the next cycle date for the recurring line. If the recurring line has never been invoiced and the first invoice will be prorated for a partial cycle, the Royalty will also be generated as a prorated amount. For example, if the next cycle date is 08/01/2009 and the recurring start date is 08/15/2009, the Royalty will be prorated for the period of 08/15/2009 through 08/31/2009.
End Date - If the Royalty will only be paid for a limited period of time, enter the last date for the Royalty. For example, if the Royalty will only be paid for the first year of services billed to the customer, and the start date was entered as 10/01/2008, then the end date would be set to 09/30/2009. If the Royalty is to be paid as long as the customer is actively being billed, do not enter a date into this field.