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Former Member

Royalty payments

Hi all,

I'm finding it hard to get resources about how to configure royalty payments. Requirement:

Our client has an agreement whereby they pay a royalty to a 3rd party based on a percentage of sales volume.

I need to work out a automated calculation, which posts an accruel to the financials relating to each sale of the 3rd party product. The royalty needs to be accrued at 5%

any ideas? Thanks in advance.

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    author's profile photo Former Member
    Former Member
    Posted on Jan 11, 2007 at 02:37 PM


    I am currently working in the media industry and my client is calculating Royalty with use of custom and existing functionality.

    COPA provides Sale at book Level in a form of extract, this extract is sent to the custom application which calculates the amount and send back the Invoice which is directly posted as an FI Vendor Invoice for the Author.

    Author is set up as a seperate vendor group and this way Royalty payments are recorded.

    Secondly there is a Media solution currently from SAP which covers the entire gamut of calculating royalties.

    And comming to the Accruel/Deferral postings i do not think we have the % postinngs but you could try using some amount of customization if calculating in R/3 itself.



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