Tag: Format

Explained: Formats & Format Groups

 

This article explains how Formats and Format Groups work in details, how they impact royalty calculation, and how to configure them safely. It is written for admins who maintain the product catalog and royalty settings.

Note: Choose Digital or Physical for a product and stick to it. Format attributes (VAT, weight, reserves, etc.) drive logistics and royalty logic. Use Format Groups to apply the same royalty rule to several formats (e.g., all vinyl formats).

► Where to manage Formats

Go to CATALOG / PRODUCTS to assign a format to a product. To define or edit formats themselves, open LABEL / SETTINGS and manage your label s format list.

Formats are customizable per label. You can keep them minimal or very granular (e.g., separate entries for different vinyl sizes, CDs, merchandise, tickets).

► Digital vs. Physical a binding decision

When you create a product, you must decide whether it is Digital or Physical. After a product has transactions, do not switch its channel between Digital and Physical.

Why this matters: Digital vs. Physical sales are calculated under different royalty regimes (e.g., splits vs. percentage of PPD). Switching would retroactively change which rules apply and can corrupt statements.

You may still change within Physical formats (e.g., from one vinyl size to another) as long as this does not conflict with existing accounting or logistics constraints.

► Format fields & what they do

Core

  • Channel: Digital or Physical. This determines which royalty ruleset can apply. Treat this as immutable once in use.
  • Type: Mark whether the release is a Single, EP, Album, etc. Used for classification and reporting.

Tax (VAT)

  • VAT1: full VAT rate.
  • VAT2: reduced VAT rate.
  • NoVAT: no VAT (rare; for VAT-exempt products). Set this carefully and only if you are sure.

Cross border sales: VAT settings influence how invoices are calculated for shops in different countries. Configure defaults that match your typical tax treatment.

Weight

Define a default weight per format to support shipping cost estimates. Product level weight can override the format s default when needed.

Reserves

  • Omit Reserve: If enabled, this format will not create physical return reserves.

Background: In traditional physical distribution, labels often held back part of the payout (e.g., 20 25%) to cover expected returns after the release date. Use Omit Reserve for formats where returns are unlikely (e.g., limited runs, tickets).

Other attributes

  • Two Sides: Describes two sided media (commonly vinyl); relevant for some collection societies.
  • Internal: Marks a format intended for internal or non retail use (e.g., exclusive direct sales). Use only if your workflow requires it.

Extras (advanced)

  • Minimum Margin: Ensures a minimum distribution fee if exchange rates would otherwise erode your margin under fixed paybacks.
  • Mechanical Min PPU: Sets a minimum per unit mechanical for certain territories (e.g., U.S. mechanicals per Harry Fox rules). Configure only if you actually need this.
  • PRO Agency Mapping: Map the format to the receiving codes for your performing rights delivery (e.g., CD, LP, MP3). Only relevant if you deliver via a PRO agency.
  • Custom ID: Legacy/experimental. Do not rely on it for business logic.

► Deleting formats

  • You delete a format only if it is not used by any product. Once a product uses a format, deletion is blocked to protect accounting history.
  • To retire a format that is in use, first move affected products to another valid format (keeping the same channel), then delete the obsolete format.

► Format Groups

Use Format Groups to bundle multiple formats that should share the same royalty rule. Example: a VINYL group that includes all vinyl formats (7 inch, 12 inch, LP, Double LP).

Tip: Keep the group names short and predictable. This makes it easy to target them in royalty rules and reports.

Where groups are used

In LABEL / ROYALTY / SELECTED CONTRACT / ROYALTY RATES you can select a Format Group for Physical rate rules (Digital rules typically do not use format groups). This is where you apply common logic such as a discount on PPD or a reserve policy to all formats in the group.

► Best practices

  • Decide early: Set the channel (Digital/Physical) when creating the product and avoid a more complex changing process later.
  • Model reality: Create only as many formats as you need for pricing, logistics, and reporting. Too many formats create noise.
  • Use groups for rules: Build royalty logic on top of Format Groups rather than single formats to reduce maintenance.
  • Define defaults: VAT and weight defaults on the format save time and reduce errors; override per product only when necessary.
  • Handle advanced fields sparingly: Minimum Margin, Mechanical Min PPU, and PRO Agency mapping are niche configure only if required by your contracts and workflows.

Explained: Formats & Format Groups

Table of contents

This article explains how Formats and Format Groups work in details, how they impact royalty calculation, and how to configure them safely. It is written for admins who maintain the product catalog and royalty settings.

Note: Choose Digital or Physical for a product and stick to it. Format attributes (VAT, weight, reserves, etc.) drive logistics and royalty logic. Use Format Groups to apply the same royalty rule to several formats (e.g., all vinyl formats).

Where to manage Formats

Go to CATALOG / PRODUCTS to assign a format to a product. To define or edit formats themselves, open LABEL / SETTINGS and manage your label’s format list.

Formats are customizable per label. You can keep them minimal or very granular (e.g., separate entries for different vinyl sizes, CDs, merchandise, tickets).

Digital vs. Physical — a binding decision

When you create a product, you must decide whether it is Digital or Physical. After a product has transactions, do not switch its channel between Digital and Physical.

Why this matters: Digital vs. Physical sales are calculated under different royalty regimes (e.g., splits vs. percentage of PPD). Switching would retroactively change which rules apply and can corrupt statements.

You may still change within Physical formats (e.g., from one vinyl size to another) as long as this does not conflict with existing accounting or logistics constraints.

Format fields & what they do

Core

  • Channel: Digital or Physical. This determines which royalty ruleset can apply. Treat this as immutable once in use.
  • Type: Mark whether the release is a Single, EP, Album, etc. Used for classification and reporting.

Tax (VAT)

  • VAT1: full VAT rate.
  • VAT2: reduced VAT rate.
  • NoVAT: no VAT (rare; for VAT-exempt products).

Cross border sales: VAT settings influence how invoices are calculated for shops in different countries.

Weight

Define a default weight per format to support shipping cost estimates. Product-level weight can override the format’s default.

Reserves

  • Omit Reserve: prevents reserve creation for this format.

Background: Used when returns are unlikely (e.g., limited editions).

Other attributes

  • Two Sides: relevant for vinyl/media.
  • Internal: for non-retail/internal formats.

Extras (advanced)

  • Minimum Margin: protects margin under exchange rate fluctuations.
  • Mechanical Min PPU: minimum per-unit mechanical.
  • PRO Agency Mapping: maps formats to external systems.
  • Custom ID: legacy field (avoid using).

Deleting formats

  • Only possible if not used by any product.
  • Reassign products before deleting obsolete formats.

Format Groups

Use groups to bundle formats sharing the same royalty rules (e.g., VINYL group).

Tip: Keep group names short and consistent.

Where groups are used

In LABEL / ROYALTY / CONTRACT / RATES, Format Groups are used for Physical royalty rules.

Best practices

  • Decide Digital vs Physical early.
  • Keep formats simple.
  • Use groups for rules.
  • Define defaults (VAT, weight).
  • Use advanced fields only if needed.