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Royalty Set-Up Screen: Variable Structure (Quantity & Discount) Breakpoints, Discount Ranges |
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The "Royalty Information (Page 2)" dialog box will appear after you've done three things on the Royalty Set-up Screen: 1) selected Variable Structure (Quantity and Discount Options); 2) entered the number of breakpoints and discount ranges; and, 3) clicked on the "Quantity or Discount Set-up" button in the bottom right hand corner of the Set-up Screen.
After entering the above information, the "Page 2" dialog box appears:
The "Page 2" dialog box is used to enter breakpoints, discount ranges, and the amount of royalty associated with the ranges. Information on the dialog box follows: Quantity and Discount: Entering Breakpoints, Ranges and Royalty Rates. The Royalty Information (Page 2) dialog box appears if you have selected Variable Structure (Both Quantity and Discount Options) and click on the Quantity/Discount Set-up button. Depending on the number of breakpoints and discount ranges you have entered on the previous page, two or more quantity breakpoint rows will be offset and underneath each quantity row will be a set of discount ranges. First Enter the Information for Quantity Breakpoints. Start with the quantity rows and enter appropriate information in the blanks. In QUANTITY BREAKPOINT # 1, type-in the quantity. The first quantity is easy. It should always be zero (0). (The only time it is not is if you have renegotiated a royalty contract with a royalty holder and you want the total number of units sold from past activity reflected on the royalty reports.) Move down to the next breakpoint row (QUANTITY BREAKPOINT #2). Indicate the quantity that the next set of rates start at. Continue doing this for all of your quantity breakpoints. If you decide you need to reduce or increase the number of breakpoints, return to the Main Royalty page and make the adjustment. If you have over three Quantity Breakpoints, you'll need to continue to fill out information on one additional page. Click on the "More Breakpoints on Next Page" button, and finish up the last of the breakpoints. Next, Enter Information for Discount Ranges. Depending on the number of discount ranges you have entered on the previous page, two or more rows will appear under each Quantity Breakpoint. In DISCOUNT RANGE #1 just under QUANTITY BREAKPOINT #1, type in the royalty rate in the first blank. The royalty rate should be indicated as a whole number. If you will be paying 7% royalty when the discount ranges from 0% to 40%, then indicate it as "7" not .07. You can fine tune your rate up to one hundred of a percentage point. For example, the program will calculate royalties based on 7.55% if desired. You can use either percentages or flat rates with discount ranges. Percentage is by far the most common, but the program will handle flat rates. Flat rates should be indicated in dollars and cents (i.e. 12.35 means $12.35). After you have entered the royalty, type in a number for the end of the discount range in the blank provided. The first discount range always starts with 0 which is entered for you, but you will designate the end of the range. You might enter 30%, 40% or whatever number you desire. After you enter a number in the right hand column, AnyBook will automatically insert the next starting range number. The starting number will always be .1 greater than previous number. The use of .1 in the first column is actually a slight simplification to help make the dialog box easier to understand. To assure that all discounts are covered, AnyBook, in reality, works on a "greater than" basis. FROM 40.1% TO 50.0% means that the range will actually extend from discounts of greater than 40% up to and including 50%. Or another way saying it is that range is greater than 40% but less than or equal to 50%. The percentage of the last discount range must be 100%. In this way all discounts are covered, no matter what the discount. Note that you may have some sales situations in which you provide deep discounts to a customer and because of the amount of discount, it's not appropriate to pay royalties. One example of this in the book trade is when books are remaindered for a small fraction of their cost. The best way of leaving such sales out of royalty calculations is to click on the "No Royalty" check box on the Main Invoice screen. All products on an invoice with No Royalty checked will be left out of royalty calculations. On royalty reports, they will be itemized as "Ineligible for Royalty." When you have finished entering the first set of discount ranges under QUANTITY BREAKPOINT #1, the ranges will be copied to all other Quantity Breakpoints. After you have the discount ranges set up, enter the royalty rates for all discount ranges. Make sure you cover all of the breakpoints. If you decide you need to reduce or increase the number of discount ranges, return to the Main Royalty page and change the number. Quantity and Discount Example: QUANTITY BREAKPOINT #1: Pay the following royalties starting with this quantity of units sold: 0 DISCOUNT RANGE #1: Pay a royalty of: 6% for the discount range of: 0% through 40.0% DISCOUNT RANGE #2: Pay a royalty of: 5% for the discount range of: 40.1 through 50.0% DISCOUNT RANGE #3: Pay a royalty of: 4% for the discount range of: 50.1% through 55.0 DISCOUNT RANGE #4: Pay a royalty of: 3% for the discount range of: 55.1% through 100.0% QUANTITY BREAKPOINT #1: Pay the following royalties starting with this quantity of units sold: 5000 DISCOUNT RANGE #1: Pay a royalty of: 7% for the discount range of: 0% through 40.0% DISCOUNT RANGE #2: Pay a royalty of: 6% for the discount range of: 40.1 through 50.0% DISCOUNT RANGE #3: Pay a royalty of: 5% for the discount range of: 50.1% through 55.0 DISCOUNT RANGE #4: Pay a royalty of: 4% for the discount range of: 55.1% through 100.0% QUANTITY BREAKPOINT #1: Pay the following royalties starting with this quantity of units sold: 10000 DISCOUNT RANGE #1: Pay a royalty of: 8% for the discount range of: 0% through 40.0% DISCOUNT RANGE #2: Pay a royalty of: 7% for the discount range of: 40.1 through 50.0% DISCOUNT RANGE #3: Pay a royalty of: 6% for the discount range of: 50.1% through 55.0 DISCOUNT RANGE #4: Pay a royalty of: 5% for the discount range of: 55.1% through 100.0%
Other parts of the Set-up Screen include: Name, Address, and Phone Blanks Email, Product, and Catalog Number Blanks Summary Name, Social Security, Active, and Code Counting, Calculation and Structuring Methods Options (Net and Profit Calculation Methods) Vary Rate Based on Pricing Level
For more information on setting up a royalty with a Variable Structure: Indicating the Number of Quantity Breakpoints Indicating the Number of Discount Ranges Entering Breakpoints & Royalty Rates for Variable Structure (Quantity) Entering Discount Ranges & Royalty Rates for Variable Structure (Discount) Entering Breakpoints, Ranges & Rates for Variable Structure (Quantity & Discount) |