Author: detailsadmin

This tutorial explains how to set up a royalty contract based on artists, for example for artist albums. If you want to create a royalties account based on tracks, for example for compilations see SET UP NEW ROYALTY CONTRACT – COMPILATION.

Watch a TUTORIAL video about how to create ROYALTY ACCOUNTS and CONTRACTS for artist releases here.

”Shortcuts:”
* Contract and item share on 50 / 50 deals

First go to LABEL / ROYALTY, click on the account you want to set up a new contract for and go to the subtab CONTRACTS. Then click [+] to type in CONTRACT NAME and enter the percentages of physical, digital and licensing income, confirm with OK.
You will be directed to the CONTRACT’s subtab CONTRACT ITEMS where you can add related items either with the auto fill option or manually.

To use auto fill first select the release that is part of this contract in the RELEASE box as described above.
The AUTO FILL FROM RELEASE (ARTIST ALBUM) button now adds all related products and tracks with their specific rata to this contract.

On the next subtab ROYALTY RATES you can see the rates you have previously entered. Here you are able to adjust or complete these by clicking edit in the particular lines or adding additional options by clicking the green PLUS.

You can enter detailed royalty settings like territories, accounts, deductions, adjustments etc. and add multiple royalty rates, e.g. different royalty rates on downloads and streaming.

The last step is to set up the contract’s RECOUPABLES. On the subtab RECOUPABLES you can manage all these settings as well as reserves.

First choose a RECOUPABLE TYPE from the drop down menu.
There are three options:

1) If advance payments and / or other particular recoupable costs are agreed on in your royalty contract, choose RECOUPABLE BY GROUPS.

Now click [+] on top right of the Costgroup Setup box and choose the cost group and the split e.g your contract includes an advance payment which is paid against royalties 100% you add the costgroup advance and give it a split of 100.
If your contract also includes a recoupable split of 50% on remix costs, just add the cost group Remix and give it a split of 50.

100% of the advance payment and 50% of the remix costs will now be paid against royalties.

It is essential that your costs have the correct COST GROUP. details automatically identifies the costs by its cost group so that these will be accounted according to the above settings.

2) If all RELEASE RELATED COSTS and all PRODUCT RELATED COSTS are recoupable costs (e.g. 50/50 deal), choose GENERAL RECOUPABLES and type in the split.

Please note that advance payments have a default split of 100%. You can adjust the amount if necessary once it’s been accounted in the Recoupables Box right next to the Setup box or while you account the advance payment separately on RELEASE / COSTS.

3) If you do not have any RECOUPABLES included in your contract, choose NO RECOUPMENT.

To set up a reserve, just click [+] on top right of the Reserve Setup box and type in the percentage, the extra months amount as stated in your contract and choose a type whether accounted on net amount or by catalog number.

On the subtab STATEMENT HISTORY you will find an overview of past ROYALTY STATEMENTS created in details for this royalty contract.

On the subtab SPECIAL you find a special AUTO FETCH function for labels and suppliers which automatically adds related items to the contract.

To activate auto fetch for labels click [+] on top right of the box and choose label and the label you want to activate it for.
If you now click the button AUTO FETCH below the box, all related releases, products and tracks of the label will be added to the contract.

You can double check on the subtab contract items.

You can also activate auto fetch for suppliers. Suppliers can be assigned in the PRODUCTS / OVERVIEW subtab.
All products (and related tracks) assigned to this particular supplier will then automatically be added to the contract.

Now you have successfully set up your contract. Next steps will be:
IMPORT SALES
CREATE ROYALTY STATEMENT

This tutorial explains how to set up ROYALTY CONTRACTS based on tracks, for example for compilations. If you want to create a royalty account based on artists’ account see SET UP NEW ROYALTY CONTRACT – ARTIST RELEASE.

”Shortcuts:”
* Contract and item share on 50 / 50 deals

On LABEL / RELEASES, you can choose the release which you want to set up contracts for.
Go to the subtab PRODUCTS, where you can see the different tracks by multiple artists on the right. Each artists should be paid royalties for their tracks and additionally for the bundle sales based on their rata.

Select the product you want to set up the royalty contracts for and go to the subtab PRODUCT / TRACKS to find out the shares, e.g.
Artist A contributed 2 out of 3 tracks and therefore gets 2/3 of each product sold and Artist B gets 1/3 in terms of this royalty contract.

In order to set up the contract, go to LABEL / ROYALTY, search for the artist’s ROYALTY ACCOUNT and go to its subtab CONTRACTS.
If you haven’t set this up yet, see here how to add a new ROYALTY ACCOUNT first.

Now to create a new ROYALTY CONTRACT, click [+] and type in the NAME OF THE CONTRACT, the percentages of physical, digital and licensing incomes and confirm with OK.
You will be directed to the contract’s subtab CONTRACT ITEMS.

To select the tracks that are part of this contract, click [+] again and choose from the list. Make sure to adjust the share percentage accordingly if the track is part of several ROYALTY CONTRACTS (e.g. two separate artists are rights holders and have contracts with you).

The AUTO FILL FROM TRACKS (COMPILATION) button adds all the products with their specific rata. Select products for the activation of the cost split.

The RELEASE needs to be added manually, just click on [+] on the Release box and select from the list.

Now you can define and enter the share of the RELEASE that belongs to this ROYALTY ACCOUNT.
Normally, you would choose the product promising the most income e.g. the digital release, and calculate:

Product Share x rata1 : rata2 = Release Share

On the next subtab ROYALTY RATES you can see the rates you have previously entered, adjust or complete these by clicking edit in the particular lines.

You can enter detailed royalty settings like territories, accounts, deductions, adjustments etc. and add multiple royalty rates, e.g. different royalty rates on downloads and streaming.
To do so click on the edit button of the first option and change the usage type to download.
Then add a new option by clicking the green PLUS icon on top right of the digital section and add a royalty rate and choose the usage type stream.
Every recorded sale is now checked whether it fits under rule 1: download and if not it will be accounted according to rule 2.

The next step is to set up the contract’s RECOUPABLES. On the subtab RECOUPABLES you can manage all these settings as well as reserves.

Choose a RECOUPABLE TYPE from the drop down menu.
There are three options:

1) If advance payments and / or other particular recoupable costs are agreed on in your royalty contract, choose RECOUPABLE BY GROUPS.

Now click [+] on top right of the Costgroup Setup box and choose the cost group and the split e.g your contract includes an advance pament which is paid against royalties 100% you add the costgroup advance and give it a split of 100.
If your contract also includes a recoupable split of 50% on remix costs, just add the cost group Remix and enter 50.
100% of the advance payment and 50% of the remix costs will now be paid against royalties.

It is essential that your costs have the correct COST GROUP. details automatically identifies the costs by its cost group so that these will be
accounted according to the above settings.

2) If all RELEASE RELATED COSTS and all PRODUCT RELATED COSTS are recoupable costs (e.g. 50/50 deal), choose GENERAL RECOUPABLES and type in the split.

Please note that advance payments have a default split of 100%. You can adjust the amount if necessary once it’s been accounted in the Recoupables Box right next to the Setup box or while you account the advance payment separately on RELEASE / COSTS.

3) If you do not have any RECOUPABLES included in your contract, choose NO RECOUPMENT.

To set up a reserve, just click on the green PLUS icon on top right of the Reserve Setup box and type in the percentage, the extra months amount as stated in your contract and choose a type wether accounted on net amount or by catalog number.

At last you will find an overview of past ROYALTY STATEMENTS created in details for this royalty contract on the subtab STATEMENT HISTORY.


Now you have successfully set up your contract. Next steps will be:
IMPORT SALES
CREATE ROYALTY STATEMENT

Once your repertoire is fully added, ROYALTY ACCOUNTS and related ROYALTY CONTRACTS are set up, you may want to start creating ROYALTY STATEMENTS and send out to your ROYALTY ACCOUNTS.

Before you start, go through the below check list.

* Set up Royalty Account & choose correct Account base
* Set up Royalty contract
* Import / add all costs
* Account recoupables
* Import digital sales reports and physical sales reports
* Account open distribution orders
* Run Autofetch All Contracts

The last step is to CONFIRM ROYALTY DATES, so that all sales and costs are correctly matched to the royalty period.
Go to ROYALTY / STATEMENTS and click the CONFIRM ROYALTY DATES button at the bottom of the list. After confirmation you can start creating your royalty statements.

You can create multiple ROYALTY STATEMENTS with the BATCH STATEMENTS PLUGIN which can be activated on LABEL / PLUGINS or manually for each ROYALTY ACCOUNT. Please click the activation button twice to fully activate.

CREATING BATCH STATEMENTS
To activate BATCH STATEMENTS go to LABEL / PLUGIN and click BATCH STATEMENTS PROCESSING.

1) Now go to LABEL / ROYALTY and select the subtab ALL ROYALTY STATEMENTS. At the bottom of the list you can now find and click the button BATCH STATEMENTS.

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2) Type in the STATEMENT YEAR and PERIOD. Select manually or click Select Pending / All and click OK to proceed.

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All statements will now be calculated, you will be notified by e-mail when the process is complete.

CREATE SINGLE STATEMENTS MANUALLY

Go to LABEL / ROYALTY, select the ROYALTY ACCOUNT and go to the subtab STATEMENTS. Click on the green PLUS icon on top right of the list, set START and END DATE and click OK.




Once it has been calculated, you will be directed to the statement.



To view the statement click the VIEW STATEMENT button at the bottom of the page.
A separate statement page will open, listing all related contracts, main figures and closing balance / payment amount.

To send a statement to your royalty account, copy the link of that statement page and send to your account.
From here a a detailed excel file including separate tabs for physical sales, digital sales, licences & recoupables can be exported by clicking the EXPORT TO EXCEL.


All royalty statements are archived on ROYALTY / ALL ROYALTY STATEMENTS tab as well as in the specific ACCOUNT’s subtab STATEMENTS.

You can also send your statements from here. Clicking the e-mail icon on the right of the list will open a new e-mail to the main contact including a link to the statement. You can add text and easily send to your account.

Run Autofetch All Contracts is an additional feature within details for distribution companies. It adds all new RELEASES, PRODUCTS & TRACKS of a LABEL to the corresponding royalty contract in one click.

Before creating royalty statements for your distribution labels, all new catalogue items set up after the last statement need to be added to the existing royalty contract.

You can either add them manually in the royalty contract one by one.
Or you can use the ‘Run Auto fetch All Contracts’ feature.
This loads all catalogue items (RELEASES, PRODUCTS, TRACKS) into existing royalty contracts.

First you need to set up the autofetch type within the royalty contract.

To do so, go to ROYALTY and select the royalty account & go to the royalty contract’s subtab SPECIAL.
Click [+] on top right of the Autofetch box.



Here you can select the label.

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All new releases, products and tracks of that label will be assigned to the existing royalty contract automatically each time you run autofetch.

You can run autofetch for a single royalty contract here by clicking the button Autofetch Label / Supplier at the bottom of the page.



Once you have set up autofetch types for the concerning royalty contracts, you may run the autofetch for all royalty contracts in one go.

Go to Royalty / All Royalty Statements and click the button Run Autofetch All Contracts at the bottom of the page.




All catalogue items will be loaded into the royalty contracts according to your autofetch setup.

If you add an autofetch for the relevant royalty contracts once & run autofetch all contracts each time before you start creating royalty statements, you ensure all catalogue items will be added to the correct royalty contracts and accounted to your label accounts accordingly.

Our Royalty Accounts may have multiple contracts. (1 account = n contracts)

Each contract has their own “economy”, meaning their own advance, incomes, costs, reserves and balances.

Within one Royalty Account therefore you may have contracts with positive balances at the same time as others with negative balances.

The ‘Cross Collect’ checkbox gives you the option to decide whether or not you want the contract-level ‘economies’ balanced on the level of the Royalty Account.

And yes, we recommend setting the cross-collect as active per default!


example 1 – non cross-collected:

Royalty Account A
contract 1 – positive balance 500 EUR payout
contract 2 – negative balance -1000 EUR forward

Balance Account A: 500 EUR payout

– – – – –

example 1 – incl. cross-collected:

Royalty Account B
contract 1 – positive balance 500 EUR cross-balanced
contract 2 – negative balance -1000 EUR cross-balanced

Balance Account B: -500 EUR negative forward

There are different ways that labels and distributors send royalty statements to their rights holders. Below are the main options available:

1. Print and Send on Paper

If you prefer to print statements and send them physically:

• Go to ROYALTY / Royalty Statements
• Use the printer icon to print directly or click the PDF icon to generate a printable PDF
  
  

2. Send Statements Individually by Email

To send one statement at a time:

• Go to ROYALTY / Royalty Statements
• Search and select the statement you wish to send
• Click the email icon to open a pre-filled email with a statement link, or
• Click the PDF icon to download the file and send it manually via email

 

3. Send Statements in a Batch (Recommended)

To efficiently send multiple statements at once, we recommend batch sending. You have two options:

Option A Classic Email Batch

Each royalty account receives an email with a link to their specific statement only.

Option B Dashboard Notification

Each royalty account receives an email notification that new statements are available in their online dashboard. They can log in to see all current and past statements, credit notes, and basic analytics.

How to Send a Batch Email

1. Go to ROYALTY / Royalty Statements
2. Filter the royalty period you want to send
3. Click Send Statements at the bottom right of the page

In the modal that opens:

• Add a CC or BCC email address if you want to receive copies
• Select statements manually or use quick filters:
  • SELECT ALL selects all statements in the current view
  • SELECT ALL “NOT SENT” selects only statements not yet sent
• Click Send Emails to deliver them to all selected contacts

If you added yourself in CC or BCC, you will receive copies of the emails.