Variable Structure (Discount): 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 (Discount Option); 2) entered the number of discount ranges 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 high and low values making up the discount ranges and the amount of royalty associated with each range.  Information on the dialog box follows:

Discount: Entering Royalty Rates  

Depending on the number of discount ranges you have entered on the previous page, two or more rows will appear on which you can enter information.  In DISCOUNT RANGE #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).

Discount: Entering Ranges

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."

If need be, you can reduce or increase the number of discount ranges. It's just a matter of returning to the Main Royalty page and changing the number.

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

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%

The above example means a royalty of 8% will be paid when the discount provided to customers ranges from 0% through 40%.  A 7% royalty will be paid when the discount provided to customers ranges from greater than 40% through 50%. A  6% royalty will be paid when the discount provided to customers ranges from greater than 50% through 55%.  And a 5% royalty will be paid when the discount provided to customers is greater than 55%.

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)