How to Show Free Copies on Royalty Statements

Many publishers provide free books to potential reviewers. Publishers that are part of Kindle Select may offer the Kindle version for free to raise awareness of a book series or gain reviews for a new title. A publisher that uses a marketing service such as Bookbub to promote “free” eBooks can distribute several hundred to several thousand books in just a few days. [Read more…]

Frankfurt Book Fair 2015

We will be presenting the latest versions of our royalty software solutions at the Frankfurt Book Fair again this year, in Hall 6.2 Stand B101.

EasyRoyalties is a powerful solution for complex royalty accounting. Available as a standalone package, or with rights and permissions modules included. Easily scalable and thus affordable for publishers of all sizes.

That’s Rights! is a comprehensive solution for organizing and tracking foreign/subsidiary rights, co-editions and permissions. (Versions available for rights sellers and literary agents.)

If you still have some appointment time available we would be happy to meet with you for a demonstration at your stand or ours (6.2 Stand B101) —please suggest your preferred appointment times.

We look forward to hearing from you and to seeing you in Frankfurt!

Make an appointment

London Book Fair 2015

We will be exhibiting at the London Book Fair again this year (14-16 April 2015, stand 4E44), where we will be demonstrating our latest versions of That’s Rights! and EasyRoyalties, our popular applications for royalty accounting and foreign and subsidiary rights management.

Our royalty accounting solutions are designed for small to mid-sized publishers, and can be configured by the user to handle anything from simple calculations to the most sophisticated, complex royalty rules. Our rights solutions accommodate rights departments and agencies of all sizes.

Our newly-released Version 4 offers powerful features for automating royalty runs, distributing statements by email, and a new interface featuring user-defined statistics and alerts. Also new with Version 4, EasyRoyalties can now be purchased with a “mini” rights module, ideal for smaller publishers and which can later expand as their rights activity grows.

If you still have some appointment time available we will be happy to meet for a demonstration at your stand or ours (4E44). Please suggest a date and time that would be convenient.

In the meantime, you can download free trial copies of our solutions from www.easyroyaltiesusa.com

We look forward to hearing from you, and hope to see you in London!

Royalty Software Payments Export

Our royalty software can export a file with the amounts owed to each royalty recipient. Importing this file into your accounting software eliminates the need to manually enter the amounts into your accounts payable system. A task that could take an accountant several hours to perform is reduced to just a few minutes. [Read more…]

Reserve for Returns

The reserve for returns clause in many contracts allows the licensee (publisher) to withhold a portion of royalties earned to account for future returns from sales made during the royalty period. This reduces the chance that royalties will be paid on unrealized sales.

The reserve is withheld for one or more royalty periods; usually one, and usually recovered over a single periods. Publishers that pay royalties monthly or quarterly may withhold reserves for 6 to 12 months.

The general ledger entry

Reserves are a delay in payment, not a reduction in the royalties earned. As such they are shown as a liability, and royalty expense is not reduced.

Period 1: 10% Reserve is withheld

Account Type Debit Credit
Royalty Expense Expense $ 1,000
Royalties Payable Liability $ 900
Reserves Liability (Withheld) Liability $ 100

Period 2: 10% Reserve is withheld and Period 1 reserve is released

Account Type Debit Credit
Royalty Expense Expense $ 2,000
Royalties Payable Liability $ 1800
Royalties Payable Liability $ 100
Reserve Liability (Withheld) Liability $ 200
Reserve Liability (Released) Liability $ 100

Royalty Software Application

The Easy Royalties software allows users to have multiple reserve rules. These rules can be based on product format, sales type or the royalty rule that applies to the sales record. Many companies do not withhold any reserves on digital products. Some publishers have higher reserve rates on sales to specific types of customers.

Royalty Software Reserves

Royalty statements can display a summary of reserves withheld and their futre recovery date.

Royalty statement reserve summary

30 Day Trial

To download a 30 day trial of Easy Royalties go to www.easyroyaltiesusa.com

V4 – Royalty Schedules

In our royalty software every royalty contract is attached to a royalty schedule.

The royalty schedule determines 1) when royalty statements are generated, 2) the royalty statement format, 3) where PDFs of the statements are stored and 4) what email template is attached to emailed royalty statements. [Read more…]

V4 – Reserve for Returns

The royalty software supports a royalty contract clause that allows the licensee to hold back a portion of royalties earned to cover future returns from sales made during the royalty period. This is referred to as a reserve against returns.

A book publisher’s reserve for returns clause may allow the publisher to withhold a “reasonable reserve” or it may specify the reserve as a percentage of the royalties payable to the author.

The reserve clause for a publisher paying royalties semi-annually or annually may state that the reserve will be withheld for no longer than one royalty period. For a publisher paying royalties quarterly this clause usually allows the publisher to withhold the reserve for two or four royalty periods.

Example:

“The Publisher may maintain a reserve against returns of ten percent of the amount due to Author, and Publisher shall indicate such reserve, if any, on the Author’s statement of accounting. The reserve will be withheld for no more than one accounting period.”

“The Publisher may maintain a reserve against returns of 25 percent of the amount due to Author for the first two royalty periods. Thereafter the reserve rate shall be based on the actual returns rate for the period. The Publisher shall indicate such reserve, if any, on the Author’s statement of accounting. The reserve will be withheld for no more than one accounting period.”

“The Publisher may maintain a reasonable reserve against returns from the amount due to Author. The Publisher shall indicate such reserve, if any, on the Author’s statement of accounting. The reserve will be withheld for no more than one accounting periods.”

Royalty Software Implementation

In the royalty software this is handled from the royalty contract’s reserve rules menu item.

Royalty Software Reserve for Returns

A royalty contract can have one rule or several returns for reserves rules.

Each rule can apply to specific product formats, sales type or only earnings from a specific royalty rule. Many publishers do not withhold as reserve on eBook sales.

Example

The example below shows a reserve for returns rule that applies only to earnings from sales of hardcover and paperback editions. No reserve is withheld from sales of the eBook edition.

1. The reserve rule applies to hardcover and paperback editions.

2. The reserve rate is based on royalty earnings.

3. The reserve period field specified for how many royalty periods the reserve is held. Publishers paying royalties annually or semi-annually tend to hold back reserves for one royalty period. Publishers paying royalty quarterly tend to hold reserves for 4 royalty periods (1 year).

4. The recovery period field specifies the number of royalty statements over which the released returns are paid to the author. A value of 1 means that 100% of the reserves are released in one statement. A value of 4 would release 25% of the withheld reserve each royalty period.

RoyaltyReserve02

Royalty Statement Options

The royalty software has an option to include a schedule of withheld reserves for returns and their release date(s) on the royalty statement. To show this schedule from the royalty statement document’s totals tab select show reserve account summary.

Royalty Software Reserve Schedule Print Option

 

Version 4 – Author Minimum Payments

Many royalty contracts have a minimum payment clause. This clause states that if the amount payable is under a specified amount, the payment amount will be rolled over to the next period. [Read more…]

Version 4 Released

Version 4 of Easy Royalties was officially released on December 31st. This royalty software upgrade features an updated database engine, new graphical user interface, support for emailing royalty statements and many other new features. [Read more…]

2015 New Year Holiday Schedule

Our office is closed for the 2015 New Year holidays from 3 PM Wednesday December 31st through Friday January 2nd. Normal business hours will resume on Monday January 5th. [Read more…]