Royalty Calculation Process

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 Sales Channel.

    • If a Sales Order is created manually, the Channel Type defaults to wholesale but can be changed.

  • Rate - Numeric field represent % 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 COG - Cost of goods sold per unit.

  • Deduct COG - If Checked, the system will deduct the total cost of goods sold (COG * Invoiced Qty) from the royalty amount.

    

Royalty Calculations

1. Navigate to Royalty Calculation

2. Click the “Calculate Royalty” button

3. Month End defaults to the previous month’s last date.

4. System will

   1. Gather all games(items) with a royalty rate setup

   2. Retrieve all Sales Invoice Lines with the following criteria

      1. Sales Invoices' Document Status = Posted

      2. Item gathered in step a

      3. It does not have a Royalty Calculation Line linked

      4. 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 COG is checked and the Unit COG field is not blank in the Royalty Rate setup

    • Then Royalty Amount = Royalty Amount - Line COG

      • Line COG field in the Royalty Calculation Line object is calculated using COG 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.

Royalty Calculation

Royalty Calculation Line