Tag: Balances

Opening balances and Period Result Carryovers

In DETAILS, the handling of royalty statement results across periods is done mostly automaticly, but deserves some explanation:

Automatic Carryover

Royalty statement results are carried over to the next periods under the following conditions:
– The overall period result is negative.
– The overall period result is less than the minimum payment threshold specified in the royalty account settings.

For instance, if the overall period result is -1000 EUR or +30 EUR, both would be automatically carried over as an opening balance to the next period if the minimum payment threshold is set to 50 EUR.
Conversely, total period results equal to or higher than the minimum payment threshold would not be carried over, as DETAILS assumes they are due for payout by default.

 

Consideration of Cross-Recoupable Contracts

Additional complexity arises when cross-recoupable contracts are involved. Selected contracts may be set as to not be payable unless the overall total of all cross-collectable contracts collectively recoups and exceeds the minimum payout threshold. Further information on cross-collectable contracts can be found in our dedicated article here.


Manual Setting of Opening Balances

DETAILS provides the flexibility to manually include amounts for carryover to royalty periods. This feature is useful when statements were calculated before manually or in another system.

Initial amounts can be entered either at the level of Royalty Contracts or in the Royalty Account as Balances, with the type set as “Closing Balance”.

The date of the balance should correspond to the first day of the period you want the balance to be included in as an opening balance.

How to change or remove Balances in Royalty Contracts or Royalty Accounts

If you need to change or remove balances from Royalty Contracts or Royalty Accounts and find they are locked, you may wonder how to proceed.


Balances become locked once they’re included in a royalty statement. At that point, they can’t be altered or removed.

To edit a balance, there must be no statement for that period.
This means the statement(s) linked to a balance must be deleted before any changes can be made.
It’s important to note that changes made to a balance of a royalty account or contract only affect that specific account or contract.

If there are costs or other income associated with multiple royalty accounts and contracts, the process can be complex and may require multiple steps described below.

Note that deleting statements should be done after careful consideration only, best before they are sent out or if a correction has been requested.

Here’s a breakdown of the process and its reversal:

Initial Process:

  1. Import costs or other income into projects or products.
  2. Transfer billable costs or other income (= “Recoupables”) at a certain percentage set in the Royalty contracts (this creates “Balances”).
  3. Include balances on royalty statements based on the balance date and royalty period (statement calculation).

Reversal Process:

  1. Delete all statements related to the affected balances.
  2. Delete all recouped balances or the entire related import (which will delete all balances related to the import at once). Related imports can be deleted via their related (Cost) Invoices.
  3. Adjust costs or other income in projects or products (before recouping them again).

Opening balances and Period Result Carryovers

In DETAILS, the handling of royalty statement results across periods is done mostly automaticly, but deserves some explanation:

Automatic Carryover

Royalty statement results are carried over to the next periods under the following conditions:
– The overall period result is negative.
– The overall period result is less than the minimum payment threshold specified in the royalty account settings.

For instance, if the overall period result is -1000 EUR or +30 EUR, both would be automatically carried over as an opening balance to the next period if the minimum payment threshold is set to 50 EUR.
Conversely, total period results equal to or higher than the minimum payment threshold would not be carried over, as DETAILS assumes they are due for payout by default.

 

Consideration of Cross-Recoupable Contracts

Additional complexity arises when cross-recoupable contracts are involved. Selected contracts may be set as to not be payable unless the overall total of all cross-collectable contracts collectively recoups and exceeds the minimum payout threshold. Further information on cross-collectable contracts can be found in our dedicated article here.


Manual Setting of Opening Balances

DETAILS provides the flexibility to manually include amounts for carryover to royalty periods. This feature is useful when statements were calculated before manually or in another system.

Initial amounts can be entered either at the level of Royalty Contracts or in the Royalty Account as Balances, with the type set as “Closing Balance”.

The date of the balance should correspond to the first day of the period you want the balance to be included in as an opening balance.

How to change or remove Balances in Royalty Contracts or Royalty Accounts

If you need to change or remove balances from Royalty Contracts or Royalty Accounts and find they are locked, you may wonder how to proceed.


Balances become locked once they’re included in a royalty statement. At that point, they can’t be altered or removed.

To edit a balance, there must be no statement for that period.
This means the statement(s) linked to a balance must be deleted before any changes can be made.
It’s important to note that changes made to a balance of a royalty account or contract only affect that specific account or contract.

If there are costs or other income associated with multiple royalty accounts and contracts, the process can be complex and may require multiple steps described below.

Note that deleting statements should be done after careful consideration only, best before they are sent out or if a correction has been requested.

Here’s a breakdown of the process and its reversal:

Initial Process:

  1. Import costs or other income into projects or products.
  2. Transfer billable costs or other income (= “Recoupables”) at a certain percentage set in the Royalty contracts (this creates “Balances”).
  3. Include balances on royalty statements based on the balance date and royalty period (statement calculation).

Reversal Process:

  1. Delete all statements related to the affected balances.
  2. Delete all recouped balances or the entire related import (which will delete all balances related to the import at once). Related imports can be deleted via their related (Cost) Invoices.
  3. Adjust costs or other income in projects or products (before recouping them again).