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Example documentationExample: Sales Contract with Separate Rights and Royalties Items

 

You want to represent license sales contracts that require rights and royalties items to be handled separately. An exploitation-dependent calculation of license revenues is to be performed here.

Representation in the License Sales Contract

You sell the film rights for a cinema production in Europe, but want to define different royalties agreements for individual countries.

  1. When creating the rights item in the license sales contract, you use item category IVR1 (IPM sales rights item) from the Customizing settings, or a corresponding item category that you define in the customer name space to represent the right to be exploited. You maintain the rights for this item, but no price agreements or conditions.

  2. Create three sub-items for the item generated in the preceding with item category IVY2 (IPM sales royalties item with confirmation) from the Customizing settings, or a corresponding item category that you define in the customer name space.

    • Define royalties dimensions including one for the territory Spain and maintain the corresponding royalty rates (price agreements) for sub-item 1.

    • Define royalties dimensions including one for the territory England and maintain the corresponding royalty rates for sub-item 2.

    • Define royalties dimensions including one for the territory Germany and maintain the corresponding royalty rates for sub-item 3.

Result

The confirmation data entered is valued and settled separately by country.