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author's profile photo Former Member
Former Member

royalty

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%

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    author's profile photo Former Member
    Former Member
    Posted on Jun 16, 2008 at 10:29 PM

    You can even do it using Rebates.

    Thank you

    Anil

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 16, 2008 at 04:17 PM

    Use the accruals functionality in the pricing procedure like you would when configuring rebate processing.

    Say your base sales price is in condition type ZPR0. You then define a new condition type ZROY(alty) that is 5% of ZPR0. ZROY has an accrual account key that points to a G/L account. You pay your vendor whatever hits this account.

    Edited by: Keerthi Hiremath on Jun 16, 2008 2:43 PM

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