How To Set Up & Process Royalties

1. Click on Items List

   In the **inventory module**, select "**Items List**"

   

2. Click on Pricing & Other Info

   Select the item and click on the "**Pricing & Other Info**" tab

   

3. Enter Royalty Info

   Select "**Other Info**" and enter **royalty amount or percentage**. Click **Save**.

   

💡 Tip!

**Royalties are assessed on customer invoices**. After the item is set-up with a royalty amount, then any **SINV/DINV customer invoices will apply the royalty**.

4. Click on Misc

   In the main navigation menu, select the **reports module** and click on "**Misc**"

   

5. Enter Selection Criteria

   Click on **RR-200 Royalty Report** and enter **selection criteria** and **run report**.

   

6. Download Spreadsheet

   Click on the **spreadsheet icon** to download the report. This will serve as the documentation for the **journal entry** and **A/P invoice**.

   

7. Create Journal Entry

   **Create a journal entry** to **debit sales revenue** and **credit liability account** to pass through royalties to customer.

   

8. Click on Enter Supplier Invoice

   In the main navigation menu, select **A/P module**, and click on "**Enter Supplier Invoice**"

   

9. Process A/P Invoice

   Process **Non-PO A/P invoice** and enter **royalty information**.

   

10. Verify Account Distribution 

    Verify **account distribution**, **save A/P invoice** and **close purchase journal**. Process **payment to customer** for royalties.

    

11. Click on 21700