Tutorvo

Minimum Guarantees: Earned Royalties, Shortfall Payments & What Is Due Each Year

Lesson 3 of 815 minLab

This lesson is part of the course

In this lesson

You compare the royalties earned each contract year with the guaranteed minimum, calculate shortfall payments with MAX(0, …), find the total due per year and see why the three years must not be netted.

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Lessons in this course

  1. The Royalty Base: Gross Sales, Allowed Deductions & Net Sales by CategoryLab15 min Locked
  2. Territories & Currencies: Local Sales, Contract FX Rates and Royalties in DollarsLab15 min Locked
  3. Minimum Guarantees: Earned Royalties, Shortfall Payments & What Is Due Each YearLab15 min Locked
  4. Advances & Recoupment: Cumulative Royalties, Unrecouped Balance and the Recoupment QuarterLab16 min Locked
  5. The Licensee's P&L: Wholesale Margin after Royalty, Marketing Fund and the Affordable RateLab16 min Locked
  6. Royalty Statements: Building the Quarterly Statement and Late-Payment InterestLab16 min Locked
  7. Royalty Audits: Under-Reported Sales, Extra Royalty and Audit Cost ShiftingLab15 min Locked
  8. The Licensor's Portfolio: Income by Category, Concentration and Renewal DecisionsLab17 min Locked