Example: Sales Contract with Fixed License Revenues
You want to represent license sales contracts in which your media company receives a single fixed fee from the licensee for the rights transferred.
Representation in the License Sales Contract
You grant the licensee the broadcast rights to an English language
television film for a specific market, territory
and period
for
a license fee of $10,000.
When creating an item in the license sales contract, you can use item category IVM1 (IPM sales 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 agreed license amount of $10,000 that was agreed to with the licensee as a flat fee with condition type 17FI (fixed license fee IR) from the 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.