Reserves Processing

Modules in this category

• Accounts Payable
• Advanced Participations
• Agency Module
• Contract Administration
• Participations
• Report Filtering
• Reports
• Reserves Processing
• Royalty Accounting
• Accounts Payable
• Advanced Participations
• Agency Module
• Contract Administration
• Participations
• Report Filtering
• Reports
• Reserves Processing
• Royalty Accounting

Module categories

• Data tools
• Database
• Day-to-day
• Document tools
• Email
• Finance
• Licensing
• Reporting
• Royalty
• Security
• System-wide

Category: Royalty

Many contracts allow Licensees to hold a portion of the royalty earnings in Reserve for a period of time to use as insurance against returns or as an allowance for bad debt. For contracts where reserves are allowed, ProFiles accurately tracks the reserve amounts and includes those reserves in the Accounts Payable or Accounts Receivable Modules. When a period of Royalties is calculated, the amount of allowable reserves is also calculated. In a receivables contract, an Invoice is issued automatically for the amount of reserves; this invoice is post-dated based on the system’s Reserve Grace Period setting and an adjustment to the current period’s receivable is made to account for the delayed receipt of the reserve amount. In a payables contract, it is much the same – a future dated voucher for payment is issued and the current period’s payable amount is adjusted by the amount of the future due voucher. As each royalty reporting period passes and its data is entered, the appropriate reconciling invoices or vouchers are made to keep accurate the total amount held in reserve.