Tag: Royalty Accounts

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).

Royalty Accounts Explained

 

Royalty Accounts represent the partners who receive statements and payments related to your catalog in details.

Depending on your business model, these may be royalty statements for rights holders or revenue statements for distribution clients.

These statements may relate to different types of rights, such as master recording rights, performance rights, or publishing rights.

In other royalty systems this entity may be referred to as a payee, licensor, or rights holder.
In details, all of these roles are represented by a Royalty Account.

A royalty account therefore represents the person or organisation that is financially entitled to receive revenue generated by catalog assets such as songs, tracks, products, or releases.

Royalty Accounts group all contracts, statements, and balances for the same partner in one place, making it easier to track financial results and generate royalty statements.

Note: Royalty Accounts are used by labels and publishers managing licensing relationships, as well as by distributors providing distribution services. In all cases, the royalty account represents the entity that receives statements and payments.

► WHERE TO FIND ROYALTY ACCOUNTS

Navigate to ROYALTY / ROYALTY ACCOUNTS to view the list of all royalty accounts.

From this list, you can:

  • create a new royalty account
  • search and filter existing accounts
  • select an account to view its details
  • delete accounts if necessary

Selecting a royalty account opens its configuration and financial information.

► WHAT A ROYALTY ACCOUNT REPRESENTS

A royalty account represents the partner who receives revenue generated from the exploitation of catalog assets.

Typical examples include:

  • artists
  • labels
  • producers
  • publishers
  • managers
  • distribution clients

For labels and rights owners, royalty accounts usually represent licensors who have granted rights to recordings or compositions.

For distributors, royalty accounts represent the artists or labels that receive revenue collected from streaming services, download stores, or other distribution channels.

Regardless of the business model, the royalty account represents the partner who ultimately receives the financial results of the catalog.

► ROYALTY ACCOUNT STRUCTURE

When you select a royalty account, several tabs allow you to manage the financial relationship with that partner.

SETUP

The SETUP tab contains the main configuration of the royalty account.

This section allows you to configure:

  • royalty account name and status
  • royalty period
  • minimum payout amount
  • account base
  • royalty project configuration
  • main contact information
  • tax parameters
  • royalty dashboard users

CONTRACTS

The CONTRACTS tab lists all royalty contracts assigned to the account.

Contracts define how revenue from catalog assets is converted into royalties and which assets are included in the calculation.

STATEMENTS

The STATEMENTS tab contains all statements generated for the selected account.

Statements summarize the financial activity for each royalty period.

BALANCES

The BALANCES tab displays financial adjustments related to the royalty account.

Balances may include:

  • advances
  • recoupable costs
  • return reserves
  • carried-forward balances
  • royalty adjustments

These balances influence the final amount payable to the partner.

► RELATIONSHIP BETWEEN ROYALTY ACCOUNTS AND CONTRACTS

Royalty accounts and royalty contracts serve different purposes.

Royalty Account = who receives the payment
Royalty Contract = how the payment is calculated

Multiple contracts may be assigned to a single royalty account. All royalties generated by those contracts are collected within the same account and included in the same statements.

This structure allows details to calculate royalties across multiple catalog assets and agreements while keeping financial reporting organised per partner.

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).

Royalty Accounts Explained

 

Royalty Accounts represent the partners who receive statements and payments related to your catalog in details.

Depending on your business model, these may be royalty statements for rights holders or revenue statements for distribution clients.

These statements may relate to different types of rights, such as master recording rights, performance rights, or publishing rights.

In other royalty systems this entity may be referred to as a payee, licensor, or rights holder.
In details, all of these roles are represented by a Royalty Account.

A royalty account therefore represents the person or organisation that is financially entitled to receive revenue generated by catalog assets such as songs, tracks, products, or releases.

Royalty Accounts group all contracts, statements, and balances for the same partner in one place, making it easier to track financial results and generate royalty statements.

Note: Royalty Accounts are used by labels and publishers managing licensing relationships, as well as by distributors providing distribution services. In all cases, the royalty account represents the entity that receives statements and payments.

► WHERE TO FIND ROYALTY ACCOUNTS

Navigate to ROYALTY / ROYALTY ACCOUNTS to view the list of all royalty accounts.

From this list, you can:

  • create a new royalty account
  • search and filter existing accounts
  • select an account to view its details
  • delete accounts if necessary

Selecting a royalty account opens its configuration and financial information.

► WHAT A ROYALTY ACCOUNT REPRESENTS

A royalty account represents the partner who receives revenue generated from the exploitation of catalog assets.

Typical examples include:

  • artists
  • labels
  • producers
  • publishers
  • managers
  • distribution clients

For labels and rights owners, royalty accounts usually represent licensors who have granted rights to recordings or compositions.

For distributors, royalty accounts represent the artists or labels that receive revenue collected from streaming services, download stores, or other distribution channels.

Regardless of the business model, the royalty account represents the partner who ultimately receives the financial results of the catalog.

► ROYALTY ACCOUNT STRUCTURE

When you select a royalty account, several tabs allow you to manage the financial relationship with that partner.

SETUP

The SETUP tab contains the main configuration of the royalty account.

This section allows you to configure:

  • royalty account name and status
  • royalty period
  • minimum payout amount
  • account base
  • royalty project configuration
  • main contact information
  • tax parameters
  • royalty dashboard users

CONTRACTS

The CONTRACTS tab lists all royalty contracts assigned to the account.

Contracts define how revenue from catalog assets is converted into royalties and which assets are included in the calculation.

STATEMENTS

The STATEMENTS tab contains all statements generated for the selected account.

Statements summarize the financial activity for each royalty period.

BALANCES

The BALANCES tab displays financial adjustments related to the royalty account.

Balances may include:

  • advances
  • recoupable costs
  • return reserves
  • carried-forward balances
  • royalty adjustments

These balances influence the final amount payable to the partner.

► RELATIONSHIP BETWEEN ROYALTY ACCOUNTS AND CONTRACTS

Royalty accounts and royalty contracts serve different purposes.

Royalty Account = who receives the payment
Royalty Contract = how the payment is calculated

Multiple contracts may be assigned to a single royalty account. All royalties generated by those contracts are collected within the same account and included in the same statements.

This structure allows details to calculate royalties across multiple catalog assets and agreements while keeping financial reporting organised per partner.