With RoyaltyWorx, you are able to add Advances which will recoup against the value of a licensor statement. Advances are added to Contract Ins within the system, and as mentioned, they will recoup against the royalties on a statement after the expenses have first been recouped.
By default, Advances will not cross recoup against other statements if the licensor's Invoice Submission Mode is set to Positive & Negative statements. This is so that the advance will only recoup against the royalties on the statement for the specific track / Contract In which the Advance is added to.
If you need to set up a cross recoupable Advance, please see the bottom of this article for details on how to set this up.
How To Setup An Advance
Setting up an Advance is simple, just head to Royalty - Contract Ins & either find the existing Contract In for the track/product the Advance was paid for & click into it. From the Contract Details page, you will notice on the toolbar an icon that says Advance.
Simply click on this icon which will bring up the Advance details.
- This is the value of the Advance paid & the amount that will be recouped from the licensors statement. Simply enter the amount that needs to be recouped here. The date here indicates when the Advance was processed. We would recommend setting this date in accordance with the Contract To & Sales To dates, for the period you would like to account for when generating licensor statements - LINK TO STATEMENT GENERATING ARTICLE
- This section allows you to allocate which licensor on the Contract In the Advance will be assigned to. If you paid for example £1000.00 to a duo, who are listed as separate licensors on the Contract In, you should add 2 Advances, 1 for each licensor of £500.00 in this instance so that both licensors recoup an equal share of the total Advance.
- The Advance Paid tick box is important as this determines whether the Advance has been paid out already, or if it’s outstanding.
PLEASE NOTE, if left unticked, the licensor will be able to invoice for the value of the advance, so if you’ve already paid them outside of the system, please ensure this is ticked.
Removing An Advance
To remove an Advance, head to the Contract In & click the Statements tab. From here you will see the Advance you added. If you marked it as paid, you will see a “Date Paid” which can be clicked. Clicking the date will prompt you to mark the Advance as unpaid. Once that is done, you can click the cross to remove the Advance.
Cross Recoupable Advance
To create a Cross Recoupable Advance (an Advance that is deducted from a licensor's overall balance, as opposed to the balance on an individual statement), you need to create a standalone Contract In with just the licensor added (no tracks or releases on the Contract In).
To do this, set up a new Contract In, remove all tracks/releases from it and add the licensor in. Once this is done, add the Advance, but you need to add it as a Negative, Unpaid Advance.
This will allow the licensor to invoice for the Advance, but instead of a positive value, they will invoice for a negative amount when they go to the licensor invoice screen.
