License Sales Contract
The license sales contract represents agreements that you make with a licensee about the usage of an Intellectual Property, which is restricted by time and content. You define the license revenues amount (incoming royalties) that the licensee is to pay your company.
License sales contracts are based on the business transaction concept. The business transaction category for license sales defines the commercial context in which the license sales contract transaction type and item categories can be used. The following transaction type is available to you for representing a rights sale:
Transaction Type |
Use |
|---|---|
License sales contract |
Describes the sale of rights to an Intellectual Property (IP). You sell the rights to a television series. You restrict the license sales contract to two seasons of this series (including all episodes). |
License sales contracts represent the sale of rights to an Intellectual Property (IP). Dates
in the license contract describe the restriction of the right sold with regard to time. You restrict the content using the rights
maintenance function. Payment that you receive from the licensee can be dependent on the exploitation success of the IP, which is measured by the usage-dependent confirmation data. This type of remuneration is represented using variable royalty rates (price
agreements). When you enter a royalty, you can also use the advance reference to record an advance amount or minimum guarantee to be recouped against a royalty.
Payments can be defined as a single fixed amount, which you represent using flat fees (conditions) for the license sales contract.
Structure
By making Customizing settings for the business transaction, you can structure license sales contracts so that they meet your requirements.
Note
To use the full range of functions for license sales contracts, you must first make the Customizing settings for business transactions according to the requirements of your company.
More detailed information on the configuration settings for license sales contracts is available in the Intellectual Property Management business scenarios in SAP Solution Manager
.
Divide your license sales contract into main
and sub-items
according to the business transaction to be represented in the system.
Note
You can define any number of sub-items for license contract main items.
Rights items
define the scope and period for which an Intellectual Property is transferred from the licensor to the licensee for rights usage. Royalties items
define the basis on which license revenues are calculated.
You can use items in which rights and royalties
items are linked in contract scenarios with a simple structure.
Common sales contract scenarios are:
Integration
When the items are released and the contract is saved, the transaction is transferred to billing.
Once the billing document has been saved, the following information is written to the license sales contract:
Document flow (at header or item level; the billing document is the successor to the license sales contract header or item)
System status
billed
(at item level)Billed value (at item level)
Data Archiving
Data archiving is available for license contracts in SAP CRM. After the contract is archived, you can still search for and display the contract. You cannot, however, edit an archived contract. For more information, see Data Archiving and Archiving of Business Transactions.
Note
For an accessible version of contract archiving using Archive Administration
(transaction SARA), you must first run the report BTC_SWITCH_LIST_GRID
and change the system setting to GRID Display
.