Overview
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
Set up Royalty Rate by Item, Designer/Vendor, and Channel Type
Royalty Rate Setup
Game - Designer’s game (Item)
Designer/Account/Vendor - Designer/Vendor account
Sales Channel - Pickst list with values “Retail” and “Wholesale”
Total Sales defaults Channel Type to Retail when sales orders are from Shopify
If not from Shopify, Wholesale
Ad Magic has a routine to create GF Sales Orders from Total Sales. The routine also populates the Sales Channel.
If a Sales Order is created manually, the Channel Type defaults to wholesale but can be changed.
Rate - Numeric field represents % if Rate Type is ‘Percentage’, $ Amount if Rate Type is ‘Fix Amount per Unit.
Rate Type - Picklist with values: “Percentage” and ”Fix Amount per Unit”
Unit COGS - Cost of goods sold per unit.
Deduct COGS - If Checked, the system will deduct the total cost of goods sold (COGS * Invoiced Qty) from the royalty amount.
Royalty Calculations
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
Item gathered in step a
It does 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
If Royalty Rate’s Rate Type setup is “Percentage”
Then Royalty Amount = Sales Amount * Rate / 100
If Royalty Rate’s Rate Type setup is “Fix Amount per Unit”
Then Royalty Amount = Invoice Qty. * Rate
If Deduct COGS is checked and the Unit COGS field is not blank in the Royalty Rate setup
Then Royalty Amount = Royalty Amount - Line COGS
Line COGS field in the Royalty Calculation Line object is calculated using COGS in the Royalty Rate * Invoice Qty.
Multiple Royalty Calculation Lines will be created if more than one designer/vendor is set up to receive a royalty in the Royalty Rate table.
Users need to review and pay.
Fields List - Royalty Calculations
Field Name | Field Help |
|---|---|
Designer/Account/Vendor | Lookup to Salesforce Designer or Vendor Account |
Royalty Amount | Roll-up summary of Royalty Amount from Royalty Calculation Lines. |
End of Month | Last date of the month. |
Month/Year | TEXT(MONTH( End_of_Month__c)) + '/' + TEXT(Year( End_of_Month__c)) |
Fields List - Royalty Calculations line
Field Name | Field Help |
|---|---|
Royalty Calculation | Master-Detail(Royalty Calculation) |
Sales Amount | Sales Invoice Line’s Line Amount |
Invoiced Qty. | Invoice Line Quantity |
Rate Type | Picklist with values “Percentage” and “Fix Amount per Unit” that determine type of rate in the Rate field |
Rate | Numeric field represent % if Rate Type is ‘Percentage’, $ Amount if Rate Type is ‘Fix Amount per Unit’ |
Line COGS | Line total cost of good sold, 0 if “Deduct COGS” is not checked for the matched Royalty Rate setup, otherwise COGS = Invoice Qty. *Unit COGS in Royalty Rate setup. |
Royalty Amount | IF(TEXT(Rate_Type__c) = 'By Percentage',Sales_Amount__c * Rate__c / 100 - Line COGS__c, Invoiced_Qty__c * Rate__c - Line_COGS__c) |