Below Cost Royalty Rule

Many royalty agreements call for no royalties to be paid on sales made at below cost. Setting this up in Easy Royalties is a two part process;

  • Create a royalty rule for below cost sales
  • Ensure that 1) each edition record has an associated unit cost or 2) include the cost of sales in the sales file.  If there is no cost of sales in the sales file the system will use the unit cost in the edition (product) record. If there is no cost of sales in the sales file nor the edition record the unit cost is zero and this royalty rule will never execute as all sales will be at or above unit cost (which is zero, if the unit cost value is not present).

Create Royalty Rule for Below Cost Sales

  1. Add a royalty rule for below cost sales.
  2. Press the Details button to edit the properties of this rule
  3. In the Applies to tab select: Sales below cost
  4. In the Royalties tab select the Rate apply to from the drop down list and enter the Royalty rate % for all copies sold
  5. At the bottom of the screen select Do NOT add sales or activities that fall under this right to the escalation tally. This will exclude these sales from your escalation quantities.
  6. Press Save

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