A Guarantee is the minimum Royalty Payment that a Licensee is contractually obligated to pay a Licensor over the term of the agreement. Guarantees may be paid one time, quarterly, semi-annually or annually (custom payment schedules can be created), are nonrefundable and can be credited against future Earned Royalties in the form of an Advance.
RoyaltyZone provides an easy way to enter, monitor, and enforce advances and guarantees. In this tutorial, we will show you how to enter a minimum Guarantee (or Advance), effective over the agreement lifetime, with multiple payment milestones
Go to Guarantee and press "New guarantee"
Enter the name and date of the guarantee
1. Create the name of the guarantee
2-3 Select the dates of your guarantee. The system will default to the agreement dates.
4. Select if the guarantee will be recouping or not.
5. Select how the guarantee will recoup
When invoices are created
When payments are made
6. Select if the guarantee will recoup during sell-off
7. Select if this is a guarantee or a sales quota
8. Press create
Next step is entering the payment distribution. Our example below if for a $40000.00, and four payments.
Each individual milestones are entered individually.
1. Select the date of the first payment due.
2. Enter the amount.
3. Enter description.
4. Press create.
Enter your second payment milestone
1. Total amount of the guarantee.
2. New payment distribution.
3. Amount.
4. Description.
5. Press Create.
Enter all your milestones until the total amount of the guarantee is entered.
Select the recoupment
Once all the payments are entered and the guarantee amount in completed, you can select the recoupment basis for the guarantee.
1. Press Next
Select the associations for the guarantee to recoup on.
Use any combination of Properties, Categories, Territories, and Distribution Methods to define how a term is applied. Select at least one Property, Category, Territory, and Distribution Method for each term
1. Select the properties
2. Select the categories.
3. Select the Territories.
4. Select the Distribution Method
5. Press Save
You have successfully entered the guarantee!
If needed you can edit the guarantee.
1. Edit the name.
2. Edit the associations.
3. Edit milestones dates.
4. Clone.
5. Delete
Confidentiality Notice
This document may contain information of a confidential, proprietary and/or sensitive nature. This document and the information in it may not be reproduced or disclosed to any unauthorized users without the prior written permission of FilmTrack, Inc (here-to-forth known as ‘The Company’). Any unauthorized reproduction or disclosure of this document or the information contained in it is strictly prohibited. All authorized reproductions (either in whole or in part) shall bear this confidentiality notice.
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