Advanced mode on Contract In gives you more flexibility in managing different rates for sales formats and expenses in RoyaltyWorx. Settings include physical, digital, licenses, compilations, expenses, territories, and reserves.
1 - Physical
The first tab details the standard rates for Physical sales formats.
By default, Compact Disc & Vinyl are automatically detailed.
You can add new formats by pressing the “New Contract Detail” button. This will open up the following menu:
1.1 - Format is the sales format that will be added to the Contract In.
To add new custom formats, please check out this guide which covers the process of adding custom sales formats & adding physical sales: SIMPLE SALES ENTRY OVERVIEW
1.2 - The Share is the percentage of revenue you want to be assigned to the Contract In.
For example, if you added in a £10 vinyl sale & set the rate at 10%, £1 would be allocated to the Contract In.
1.3 - The Received Royalties is the standard calculation setting for calculating the amount owed.
Whatever amount you enter through Simple Sales Entry, that amount will be split by the percentage defined in 1.2.
1.4 - If you have an agreement with your licensors that states a Fixed Price Per Dealer, instead of using the Unit Value entered in the Simple Sales Entry, it will use the fixed price stated here & then apply the percentage calculation to that value instead.
2 - Digital
The Digital tab by default details 2 rates, named “Album Basis” & “Track Basis” for both Downloads & Streams. When you click into one of the formats, the following screen will appear:
2.1 - The Format dropdown allows you to select the sales format.
You can also add custom sales formats here.
2.2 - The album share percentage allows you to set a separate rate for a full release sale.
This can be used in instances where the licensors on the Contract In should receive a different percentage for a full product sale. Note that the amount of royalty allocated to this calculation is the pro-rata album share for tracks on this contract.
2.3 - The track basis is the rate the licensor receives for a single track download/stream.
You can use this setting to specify the rate a single track sale is allocated.
3 - Licenses
This field only correlates to the sale type "Licenses" added through the Simple Sales entry, as shown in the image below.
IMPORTANT - This rate is separate from the 3rd Party License rate in the “Compilation” tab.
4 - Compilations
By default, two rates are specified here, 3rd Party License & In House License.
The 3rd Party License rate here covers sales inputted via Distributor Sales - File Conversions (Third Party) or through Simple Sales Entry - Compilations - 3rd Party License.
The In House rate will override the rates specified in the “Digital” tab if a track is marked as “In House” as shown below.
5 - Expenses
The Expenses tab allows you to detail different rates for different expense types.
If an Expense type is set to 100% here, the Contract In will be allocated the full value of the expense which will be recouped against the licensors royalties. Setting an expense rate to 0% will mean the licensors on the Contract In will not pay a share of the expenses.
The expense types listed here correlate to the expense types found when adding an expense to a release. Custom expense types can be added under Royalty > Maintenance > Expense Types.
6 - Territories
IMPORTANT: If you do not see these next 2 tabs in Advanced mode & you need to use them, please contact support & we can enable these expert features for you. You will also need to go to Settings - RoyaltyWorx Settings and change the “LW Statement Consolidation” to “No Consolidation”.
If you have a territory-specific deal in place, you can use this section in Advanced mode to specify which territories the terms of the Contract In apply to. From this tab, you can select individual territories, along with the rule you would like to apply to the Contract in
Worldwide Release - This is the default setting. You will not be able to select any individual territories. All territories worldwide will be accounted for on the Contract In.
Only these selected countries - This setting allows you to select specific territories to apply to the Contract In.
You can use this in conjunction with the below, to create 2 or more separate Contract Ins. Explained in more detail below.
Worldwide except these countries - The final option on this dropdown allows you to apply the terms of the Contract to all of the territories EXCEPT for the ones that are ticked.
This is useful if you need to exclude a handful of territories. It is also useful to use in conjunction with the above.
For example, you may need different rates for different territories. You may need a 30% digital rate for US & UK but 50% for all other territories. You could create 2 Contract Ins for this.
Version 1 with "Only these selected countries" set to US & UK, with the relevant digital rate (30%).
Version 2 would be set to "Worldwide except these countries" with US & UK selected, also with the relevant digital rate (50%).
This way, all territories are covered and accounted for at the correct rate.
7 - Reserves
The reserves tab allows you to allocate a specified percentage of all royalties to be held for a number of months. Please note that this will be taken from the total amount of all royalties assigned to the Contract In. Any adjustments to a statement will not be affected by the reserve rate.