Clearing of Negative Royalties
You use this function to recoup negative royalties in outgoing royalties settlement.
Prerequisites
You have made the settings in Customizing for Customer Relationship Management
under 
Industry-Specific Solutions
Media
Intellectual Property Management
Billing and Settlement
Outgoing Royalties
Configure Clearing Items for Negative Royalties
.
Features
The outgoing royalties (OR) Billing Engine (IPMO) can create clearing items for negative royalties during billing. If the amount of a royalties item is less than zero, the system can create a clearing control item and increase the unrecouped amount of the advance. This unrecouped amount can be larger than the amount of the original advance. If more than one advance is involved in clearing, the first advance item is used to update the unrecouped amount.
Example
In the acquisition contract for the rights to a book IP, you agree to an advance of 10,000 USD with the licensor. Royalties in the amount of 4,000 USD are received and are recouped against the advance. The remaining advance is 6,000 USD. Unsold merchandise in the amount of 5,000 is returned from bookstores. This represents a royalties amount of -5,000 USD. The negative royalties amount is added to the remaining advance. The amount of the advance is now 11,000 USD.