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…]

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…]

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…]

Reserves for Returns

Reserves for returns is a key functionality of royalty software.

Reserves are used when your contract allows you to withhold a portion of royalties earned in the current royalty period to cover expected returns that are expected to be received in the next royalty period. [Read more…]

Royalty Software Selection

Publishers, manufacturers and software companies often ask is Easy Royalties the best software for them. The answer is, it depends. You need to look at your budget, your requirements, the competition and contact references to select the software that best meets the needs of your company.  Easy Royalties is best suited for companies that will have 5 or fewer concurrent users and will import fewer than 100K sales transactions monthly. [Read more…]

Validation of ISBN/Product Code

Every product in our royalty software requires a product code. Book publishers call this code an ISBN (International Standard Book Number).

Book publishers can configure the royalty software to accept only valid ISBN’s. This is done from the Options, settings & lists > Personal options > General tab.

Select Validate ISBN numbers on data entry to accept only valid ISBNs. Leave this box unchecked to turn validation off.

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Royalty Software Disaster Protection

Hurricane Sandy, which hit New York City in October 2012, drove home the importance of protecting your critical royalty software files. While companies along the shore were affected, so were datacenters in Manhattan and inland companies that experienced power outages and power surges.

At Kensai International we advise our clients to implement a four tier backup plan.

Tier 1. Online Backup

Online backup ensures that your royalty software’s data is automatically backed up to a secure location. Small companies tend to use affordable backup services such as Carbonite, Mozy or SOS Online backup. Large companies use more expensive backup services from Fortune 500 companies such as IBM and EMC.  What’s the difference? In the event of a disaster these Fortune 500 companies can call on resources that are not available to smaller online backup services.

Small Company: Carbonite, Mozy, SOS Online

Large Company: IBM, EMC

Tier 2. Local Backup via a USB hard drive or a Network Attached Storage Device

Though an online backup services is good, you always need a 2nd line of defense. Why? First, you never want to place all your eggs in one basket. Second,  in the past some backup services have experienced problems that delayed backup recovery by up to 7 to 21 days. Third, restoring data from a local device is a lot faster.

Small Company: Seagate Backup Plus or Western Digital MyBook

Larger Company: IoSafe Fire and Waterproof USB or NAS drives.

Note: Companies with small data files supplement this with a periodic backup to a CD. Companies with large data files may supplement their hard drive backup with a tape backup or backup to a USB drive that is is stored in a fire & waterproof safe.

Example: Daily online and USB hard drive backup. Monthly tape backup.

Tier 3. Surge Protection

Surge protectors  & power conditioners protect your royalty files from the data corruption and drive failures that result from large power fluctuations. Pricing ranges from $25 for a simple surge protector to $300 for a ZeroSurge surge protector. ZeroSurge protectors are used by government agencies; Department of Defense, NASA, US Army, US Navy, etc., and Fortune 500 companies  such as AT&T, Boeing, Exxon, Federal Express Lockheed Martin. If you have over 5,000 royalty contracts we recommend that you protect the hardware storing your royalty data with a ZeroSurge protector and a UPS device.

Tip: Plug the ZeroSurge protector into the power outlet and plug the UPS device into the surge protector.

Small Company: APC or Isobar surge protectors or UPS devices.

Large Company: ZeroSurge (www.zerosurge.com).

Tier 4. Data Recovery Procedures Manual

The data recovery procedures manual is a step by step action plan on how to recover your royalty software and its associated data files.  It contains the contact information for the software’s vendor and you how to recover the data stored in your online and local backup drives. Twice a year the IT manager (or royalty manager in small companies) will test the recovery procedure to ensure that it works and that all contact information is valid. The recovery procedures manual should be stored online and in a local fire & waterproof safe.

If you have any questions or comments about the information in this post please email info@easyroyaltiesusa.com

Windows 8

Our royalty software; Easy Royalties, works with Windows 8.

The Windows 8 platform features two major security improvements along with a modern tile based interface designed for tablets and smart phones.

Security Improvements

First, secure boot; on supported PCs, allows properly signed and authenticated components are allowed to execute during operating system startup. This is explained in the MSDN blog post below:

http://blogs.msdn.com/b/b8/archive/2011/09/22/protecting-the-pre-os-environment-with-uefi.aspx

Second, Windows 8 loads your internet security software before all other startup apps. Malware cannot load first and turn off your security software.

Tile Based Interface

Windows 8 also present users with a new modern tile based start screen. Traditional programs; such as Office 2010 and Easy Royalties, run in the Windows 8 desktop environment.

If you want to reduce the learning curve for Windows 8 and preserve the traditional Windows 7 desktop look we recommend that you purchase the Start8 Windows 8 add-in ($4.99 USD) that provides;

  • Windows 7-style Start menu with Windows 8 enhancements
  • Search for Windows 8-style (Modern UI) apps
  • Pin desktop and Metro apps
  • Boot directly to the Windows 8 desktop
  • Windows 8 Start screen accessible from the Start menu

You can purchase the Start8 add-in from http://www.stardock.com/products/start8/

If you have any questions about running Easy Royalties under Windows 8 please feel free to contact us via email or phone.

Video Tutorials

Our first royalty software video tutorial covers how to create a new royalty database.

You can view it by going to the Support: Video Tutorials or by clicking this link: http://easyroyaltiesusa.com/demos/Lesson_1_CreateDatabase.htm

Our goal at Easy Royalties USA.com is to release a new video tutorial each week. Our schedule for forthcoming tutorials include;

  • October 17th: Creating a Royalty Statement
  • October 24th: Recording payments of royalty statements

If you would like to see a tutorial on a specific topic send an email to edwin@kensai.net