Implement royalties in SD

[Former Member]

Has anyone done this in SD.

I am thinking that these people to whom royalties need to be given can be set up as employees who get commission on sales.

Haven't tried yet, but think should be able to set up employees without activating HR.

Another thought is to implement as Rebates.

Any other clues in the direction?

Thanks, UN

[nandakumar_v2 · Accepted solution]

Hi Create a condition type ZRYP for royalty and assign it to the priicng procedure -

as long as the access sequence finds a condition record, it will calculate an dpost to royalty account

Finance can than pay to the Royalty owner he amount at the end of the period.

cheers

nandu

[Former Member · Accepted solution]

Hi Nandu,

The sold to party and the royalty party will be different.

If you are suggesting assign to say one royalty GL account, then how that account would accumulate/distinguish for say royalty owner1 and 2.

Am i missing something, could you elaborate more.

[nandakumar_v2 · Accepted solution]

Hi Un

I understand your point - let me clarify in a different way:

1) Part / Material purchased from vendor - Royalty to be paid to this Party

2) Royalty to be based on Sales made - which is at Customer point

Requirement: to calculate the Royalty to be paid to vendor

probable solution: at the time of Billing for the sales done, have a condition type which will calculate the Royalty amount ( say 2% on sales price or fixed rate fer peice etc.) and post to Royalty GL Account

Since the part can be sold to "X' number of customers, with every billing, the royalty account is posted with the correct value.

When the FI have to pay the Vendor with the Royalty amount at the end of a period, they will do so with appropirate entries

Hope this is a calrification which hepls you - If 2 vendors ae involved for the same Part, then you need to work out a solution to identify this - do this manaully and if it can be done so, work out a solution in SAP.

cheers

nandu

cheers

Nandu