Our royalty software includes functionality for calculating reserves.
To add a rule for reserves go to the Royalty contract > More… tab. Select the Reserve rules meu item. A contract can have one or many rules for reserve for returns.
Reserve rules can be based on product format, sales type or a royalty rule.
The example below shows a rule that applies a reserve against royalty earnings for hardcover and paperback sales. The rate is 10% of royalty earnings. No reserves are withheld on eBook sales.
There are two options for displaying reserves on royalty statements.
Option 1. The default is to show the reserve as a line item on the royalty statement.
Option 2. Additionally, you can display a schedule of when reserves will be recovered. This option is often selected when reserves are withheld for more than one statement period.