Example: Acquisition Contract with Multiple Payees
You want to represent contracts in which the payments to be made by the licensor are distributed among several payees.
Representation in the License Acquisition Contract
You agree to a fixed royalties payment for the author rights to several contributors to a book. The royalties amount of 20,000 USD is to be divided among three contributors, based on the number of pages each author has contributed.
When creating an item in the license acquisition contract, you can use item category IEM1 (IPM acquisition rights + 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 20,000 USD that was agreed to with the licensor with condition type 17FO (fixed license fee OR) from the Customizing settings, or a similar condition type that you define.
You list the contributors in the
Payment Distribution
assignment block on the header level and assign the share basis for each payee as shown below:Contributor
Share Basis
Contributor 1
100 pages
Contributor 2
50 pages
Contributor 3
50 pages
Note
In the example above, the sum of the contributors' share basis does not add up to 100. In this case, you must implement Business Add-In (BAdI) Checks for Multiple Payees
(CRM_IPM_BILLPLAN_MP
).
Result
When the items are released and the contract is saved, the transaction is transferred to billing. When you bill the billing due list item, the system creates a summary billing document. This is used to create a payee billing document for each payee according to the share basis. The system calculates that the contributors receive the following amounts:
Contributor |
Royalties (Based on Share Basis) |
|---|---|
Contributor 1 |
10,000 USD |
Contributor 2 |
5,000 USD |
Contributor 3 |
5,000 USD |