Royalty condition type

[Former Member]

Hi All,

I would like to know the different ways the condition type Royalty is used in SAP. I am thinking its similar to a tax type condition added to an accrual account every time material is procured from the vendor. It also has a role to play while selling the goods to a customer but doesnt exactly know in what other cases this can be used. Can anyone throw some light on this?

Like standard Terms and conditions is there any where we can find the definitions of all the different condition types that are used in Pricing procedure. If yes can anyone tell me where I can find it.

Appreciate your help

Shane

[Former Member]

Hi

I have done some research on Royalty condition type and here is what I found.

1) All the Original equipment Manufacturer (OEM) materials are usually subjected to paying Royalty.

2) When a PO is generated for these materials, the royalty condition type is being pulled from PIR (if maintianed) and when the

actual receipt is done the royalty is accrued to one GL account.

3) On month end, Finance reviews this GL account and pay the accrued amount to the concerned vendor.

4) When we do returns for one of these materials, the same royalty has to be credited from the royalty accrual account.

Hope this will help

Shane