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Royalties

The Royalties section defines the royalty rates applied under a license contract. Rates can vary by selling location, buying location, term type (e.g., FOB, DDP), and product category. This ensures that royalty costs are accurately reflected in cost calculations and financial planning.

Each royalty entry specifies financial obligations under various commercial terms. These entries support integration into the costing module, enabling automatic application of relevant royalty fees during product development and sales.

What You Can Do

  • Set Royalty Rates – Enter specific percentages for:
    • Sell: Based on selling price
    • Buy: Based on cost of goods purchased
    • RRP: Based on recommended retail price
  • Select Terms – Assign terms such as FOB, DDP, DAP, etc.
  • Add Descriptions – Clarify royalty conditions for internal reference.
  • Assign to Categories – Tie royalties to product categories for targeted application.
  • Manage Royalties – Add or remove entries as needed depending on license changes.

Configuration Requirements

Admin Setup Required

Ensure the following are pre-configured in Site Settings: - Terms (e.g., FOB, DDP) - Categories for product classification
These are required for dropdown selections within the Royalties section.

Example

Royalties

Tips

  • Define clear rules for how royalties apply across terms and categories.
  • Review rates regularly to reflect updated agreements or product changes.
  • Use meaningful descriptions to help finance and merchandising teams understand the context.