Show TOC

Object documentationAdvance Reference

 

The advance reference creates a link between a royalties item and additional items that are to be recouped against license revenues.

 

The advance reference links an advance group to a royalties item in a license contract. An advance group can contain a single item or a group of recoupable items, such as advances and minimum guarantees. All advance items in the group are recouped against the same royalties item(s). The royalties item(s) can only reference the advance group, and not an item within the group.

Viewing Advance References

You can view all advance items linked to the royalties scope, when viewing royalties scope information in the contract tree (for example, when you select a royalties or rights and royalties node in the Contract Overview assignment block). You view this information in the Advance Reference section.

Each advance scope displayed will include a link to the contract to which it is associated.

To use this function, you must activate the business function Intellectual Property Management (CRM_IPM_1).

Viewing Royalties References

In addition, you can view all royalties scopes that are recouped against the advance, when viewing advance information in the contract tree (for example, when you select an advance node in the Contract Overview assignment block). You view this information in the Royalties Reference section. Each royalties scope displayed will include a link to the contract to which it is associated.

To use this function, you must activate the business function Intellectual Property Management (CRM_IPM_1).

Example Example

You create an advance group containing one or more advance items and a minimum guarantee.

End of the example.

You maintain the advance reference in license acquisition or license sales contracts in a royalties scope or rights and royalties scope. In the Advance Reference assignment block, create a link between the advance group and the royalties item for clearing purposes.

The Advance Reference set by the royalties item means that this royalties item (and all associated billing request items) can be recouped against all advance items in the group and contributes to the actual guarantee-related value achieved for all minimum guarantees in the group.

The following types of clearing-relevant items are possible:

Advance

An amount agreed in the contract, which the purchaser usually pays at the start of the contract validity period and against which subsequent royalties due are offset. You can agree to an installment (also called milestone) billing plan.

The following types of advance are possible:

  • Guaranteed

    Any remaining amounts remain with the licensor at the end of the runtime

  • Repayable

    Any remaining amounts are repaid to the licensee at the end of the runtime

Minimum guarantee

A target value that is to be reached cumulatively by a certain defined point in time using recoupable items. Recoupable items increase the actual guarantee value that is valid for the minimum guarantee when they are settled. This actual value is compared with the target value during settlement of the minimum guarantee. If it is less than the target value, a subsequent payment is required.

Integration

For license sales contracts, observe the following implications on account determination when maintaining advance and minimum guarantee items:

  • Rights that you maintain for an advance item influence provisional account determination in SAP FI and SAP CO. This can be reversed during clearing.

  • Rights that you maintain for the minimum guarantee item influence account determination for the final difference amount billed in SAP FI and SAP CO.