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AdMagic uses the Royalty module to calculate the royalty payable to designers. The royalty is calculated for every designer, based on the Sales Channel of the sold items.
Setup
Set up Designers as Salesforce Accounts
Owned or Consignment???? By Order????
Set up Royalty Rate by Item, Designer/Vendor, and Channel Type
Royalty Rate Setup
Game - Designer’s game (Item)
Designer/Account/Vendor - Designer/Vendor accountPoints to the Account table.
Sales Channel - “Retail” and “Wholesale”
Values are from Total Sales.
Total Sales defaults Channel Type to Retail when sales orders are from ShopifyIf . IIf not from Shopify, Wholesale
Ad Magic has a routine to create GF Sales Orders from Total Sales. The routine needs to must populate the Sales Channel.
If a Sales Order is created manually, the Sales Channel defaults to wholesale, but can be changed.
Rate Type - A selection list with value “%” or ”Unit”
Rate - The numeric field represents percentage if Rate Type is '%’ or $ amount per unit if Rate Type is ‘Unit'.
Unit COGS - Cost of goods sold per unit.
Deduct COGS - If Checked, the system will deduct the total cost of goods sold from the royalty amount.
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Navigate to Royalty Calculation
Click the “Calculate Royalty” button
Month End defaults to the previous month’s last date.
System will
Gather all games(items) with a royalty rate setup
Retrieve all Sales Invoice Lines with the following criteria
Sales Invoices' Document Status = Posted
Items that are set up in the Royalty Rate Setup table
The invoice lines do not have a Royalty Calculation Line linked
Posting Date <= the Month End date
Each unique combination of Year/Month and Designer account will have a Royalty Calculation header????.
Royalty Amount calculation logic
Line COGS = Invoiced Qty. * Unit COGS
If Deduct COGS is checked
Then Royalty Amount = Royalty Amount - Line COGS
If Royalty Rate’s Rate Type setup is “%”
Then Royalty Amount = Sales Amount * Rate / 100
If Royalty Rate’s Rate Type setup is “Unit”
Then Royalty Amount = Invoiced Qty. * Rate
Line COGS = Invoiced Qty. * Unit COGS
If Deduct COGS is checked
Then Royalty Amount = Royalty Amount - Line COGS
Multiple Royalty Calculation Lines will be created if more than one designer
is set up to receive royalty payment for one particular item in the Royalty Rate Setup table.
Manually enter Royalty Payments. Users need to review and pay.(automation is possible)
Ad Magic reviews then pay the Remaining Payment. (automation is possible)
Fields List - Royalty Calculations
Field Name | Field Help |
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Designer/Account/Vendor | Lookup to Salesforce Designer or Vendor the Account table |
Royalty Amount | Roll-up summary of Royalty Amount from Royalty Calculation Lines. |
Payment Amount | Roll-up summary of Payment Amount from Royalty Payments |
Remaining Payment | Formula field: Royalty Amount - Payment Amount |
End of Month | Last date of the month. |
Month/YearTEXT(MONTH( End_of_Month__c)) + '/' + TEXT(Year( End_of_Month__c)) | For example 8/2023 |
No. of Lines | Number of Royalty Calculation Lines created. |
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Field Name | Field Help |
|---|---|
Royalty Calculation | Master-Detail(Royalty Calculation) |
Sales Amount | Sales Invoice Line’s Line Amount |
Sales Channel | Sales Order Order’s Sales Channel |
Invoiced Qty. | Invoice Line Quantity |
Rate Type | Picklist with values “%” and “Unit” that determine type of rate in the Rate field |
Rate | The numeric field represents percentage if Rate Type is '%’ or $ amount per unit if Rate Type is ‘Unit'. |
Unit COGS | Copied over from matched Royalty Rate Setup when line is created. |
Deduct COGS | Copied over from matched Royalty Rate Setup when line is created. |
Line COGS | Line COGS = Invoiced Qty. *Unit COGS |
Royalty Amount | IF( Deduct_COGS__c = True, |
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See above Royalty Amount calculation logic, |
Security
Only users who are allowed to access Accounting Seed can access Royalty Calcuation module.