The Royalties and Commissions option is used to display a listing of all Recurring Royalties or Job Commissions that are due to an Employee or Vendor. The information displayed is derived from two sources of data; Commissions setup on Jobs and Royalties setup on Recurring Lines. The results displayed on this form is used when your company is ready to issue checks to Employees or Vendors to whom royalty or commission payments are due.
Recurring Royalties
A Recurring Royalty is a record linked to a single recurring line which contains information as to what amount should be paid to an employee or a vendor each time the recurring line is cycled and the invoice is posted. The User setting up the Recurring Royalty record has the option of posting the Royalty transaction to the GL or to just have the information available for use when ready to write checks for Royalties due to Employees or Vendors.
The User also has the option of deferring a Recurring Royalty. If this option is selected in the Recurring Royalty record setup, if a customer is cycled for a period other than monthly, the Royalty amount will be divided up into monthly amounts for each month within the service period being cycle invoiced. For example, if a customer was cycled for the service period of October through December(quarterly), and the monthly Royalty amount is $5.00, three Royalty records will be created for $5.00 each; October, November and December.
Recurring Royalty records may be setup for Employees or Vendors.
Recurring Royalty for an Employee
An Employee receiving a Recurring Royalty is typically the Salesperson for the customer. Some companies pay a monthly Royalty to a Salesperson as an incentive for the Salesperson to keep the customer happy and continue with recurring services with your company. Since the recording of Recurring Royalties due is based upon posted cycle invoices, if the customer cancels recurring services, the Recurring Royalty ends.
Recurring Royalty for a Vendor
Recurring Royalties may be setup for a Vendor. The Vendor may be an outside sales consultant or a Vendor your company has agreed to pay a royalty for a particular type of recurring service. For example, your company is selling medical monitoring services. Your company is leasing the medical unit from a Vendor; each month your company pays the Vendor a Royalty for all units in service. By setting up a Recurring Royalty for the Vendor, each time the customer is cycled, a Royalty due record will be created for the Vendor.
Job Commissions
Job Commissions are setup on Job records from the Job Commission form. Once the commission lines are saved, they are available for viewing in the list of Royalties & Commissions and may be marked as due and paid after the checks are written to the employee.
For detailed information on setting up Job Commissions, refer to the Creating a New Job topic within Job Management folder.
Click on the links below for more information related to Royalties and Commissions.
Recurring Royalties Setup for an Employee
Recurring Royalties Setup for a Vendor
View Recurring Royalties for an Employee
View Recurring Royalties for a Vendor