Variable Structure (Quantity): General Information

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 Option); 2) entered the number of breakpoints desired; 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 information, above, the "Page 2" dialog box appears:

The "Page 2" dialog box is used to enter the actual breakpoint numbers and the amount of royalty associated with each.  Information on the dialog box follows:

Quantity: Entering Breakpoints and Royalty Rates

The Royalty Information (Page 2) dialog box appears if you have selected Variable Structure (Quantity Option) and click on the Quantity/Discount Set-up button.

Depending on the number of quantity breakpoints you have entered on the previous page, two or more rows will appear on which you can enter information.  In QUANTITY BREAKPOINT #1, type in the royalty rate in the first blank and type the quantity at which that rate should start.  The quantity is easy in this first breakpoint.  The first quantity should always be zero (0).  (The only time it is not is if you have renegotiated a royalty contract with an individual and you want the total number of units sold from past activity reflected on the royalty reports.)

In the second row (QUANTITY BREAKPOINT #2), indicate the next royalty rate and the quantity that this next rate starts at.  Continue doing this for all of your quantity breakpoints.  The last quantity breakpoint means that the royalty rate you've indicated will be paid when the total number of products sold reaches and exceeds the breakpoint number.  If you decide you need to reduce or increase the number of breakpoints, return to the Main Royalty page and make the adjustment.

Royalty rates should be indicated as a whole number.  If you will be paying a 7% royalty when the total number of units sold reaches 5,000, 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 can calculate royalties based on 7.55% if desired.

You can use either percentages or flat rates with quantity breakpoints.  Percentage is the most common, but the program will also handle flat rates.  Flat rates should be indicated in dollars and cents (i.e. 12.35 means $12.35).

Sample Entry. Here's an example of a quantity breakpoint set-up:

QUANTITY BREAKPOINT #1:  Pay a royalty of  5% which starts with this quantity of units sold:  0

QUANTITY BREAKPOINT #2:  Pay a royalty of  6% which starts with this quantity of units sold:  5000

QUANTITY BREAKPOINT #3:  Pay a royalty of  7% which starts with this quantity of units sold:  10000

QUANTITY BREAKPOINT #4:  Pay a royalty of  8% which starts with this quantity of units sold:  25000

The above example means that a royalty rate of 5% will be paid for the first 4999 units sold.  When the total number of units sold reaches 5,000, the rate changes to 6%.  When the total number of units sold reaches 10,000, the rate changes to 7%.  When the total reaches 25,000 or greater, the rate will be 8%.

Other parts of the Set-up Screen include:

Menu Bar

Name, Address, and Phone Blanks

Email, Product, and Catalog Number Blanks

Summary Name, Social Security, Active, and Code

Keep Running Tally Box

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)