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Example documentationExample: Acquisition Contract with Fixed Royalties

 

You want to represent license acquisition contracts in which the payments to be made to the licensor are managed using a single fixed fee.

Representation in the License Acquisition Contract

You agree to a single royalties payment of $5000 for the publishing rights with the author. When creating an item in the license acquisition contract, you can use item category IEM1 (IPM acquisition rights and royalties item) from the Customizing settings, or a similar item category that you define to represent rights and royalties for fixed conditions.

  • Restrict the content of the right within this item.

  • Record the royalties amount of $5000 that was agreed with the licensor with condition type 17FO (fixed license fee OR) from the SAP Customizing settings, or a similar condition type that you define.

Result

When the items are released and the contract is saved, the transaction is transferred to billing.