Consonance has a two-step royalties process:
1) Calculate royalties
2) Generate statements
This article covers step 1: Calculate royalties.
What is a royalty run?
A royalty run is a batch of products whose sales are subject to royalties. You tend to calculate royalties in batches at regular intervals, for multiple products, rather than one product at a time. The Royalty runs page is where those batches are created and managed.
1) Go to the royalty runs page
2) Fill in the form
Click the Add button, fill in the form, then click Save. Give the run a name that is meaningful to you. For example, Snowbooks runs royalties twice a year, and gives its royalty runs names which reference the last sales invoice date of its product sales e.g. ‘Up to September 2019’.
The page refreshes after saving to show your new royalty run, with an ‘unprocessed’ status. Click on its name to go to the Edit page.
3) Add products to the royalty run
Click on the Actions button to show the available actions:
Click on Add all published products to add every published product to your royalty batch.
There are two alternatives to adding all products. Click on Add products with sales to add only those products which you’ve imported sales for. Or click on Add products with unroyaltied sales to add only those products which you have imported sales for which haven’t yet had royalties calculated.
Clicking Add all published products permits the generation of statements for recipients even if their products’ sales are zero, which is probably desirable.
Consonance keeps a record ⤴ of when royalties have been calculated on each individual transaction.
4) Look at the product list
Review the list and click to remove any products which you don’t want to run royalties on.
What if my product list looks wrong?
There are a number of potential reasons for your product list not looking as expected.
- Products already belong to another royalty run. Consonance only allows products to be processed in one run at a time.
- You clicked Add all products with sales or unroyaltied sales but have not yet uploaded the sales.
5) Analyse products
Click Actions > Analyse products.
The page refreshes to show you the analyses performed, such as whether the contract is signed, and whether the royalty rates have been typed in. This is for information only: scan it to see if all looks in order. If something is wrong, correct it, return to this page and then click Actions > Re-analyse products.
How are royalties calculated?
Read About Royalties for how Consonance calculates royalties. Also read the Edit a contract article to learn how to fill in the contributor’s contract. Consonance gets the following information from the contract:
- Payees and payee splits
- Royalty rates
- Royalty payment frequency
- Tax information
- Signed date
6) Execute calculations
Click Actions > Execute calculations to run the royalties calculation.
What if I add sales later?
Click the Re-analyse and Re-execute buttons as many times as you want. Each time you do, the system re-calculates royalties from scratch. This is how the system was designed to work and you do not duplicate information.