A Guarantee is the minimum Royalty Payment that a Licensee is contractually obligated to pay a Licensor over the term of the agreement. Guarantees may be paid one time, quarterly, semi-annually or annually (custom payment schedules can be created), are nonrefundable and can be credited against future Earned Royalties in the form of an Advance.
RoyaltyZone provides an easy way to enter, monitor, and enforce advances and guarantees. In this tutorial, we will show you how to enter a one time Advance.
1. Click "New Guarantee" on "Step 8 – Advances / Guarantees" of the new agreement entry process
2. Enter a name for the term (Examples = Initial Advance, Advance, etc.)
3. Use the default settings Start Date and End Date (defaults to the agreement start/end date)
4. Use the default setting to allow the licensee to recoup guarantee payments against earned royalties, then click "Create"
5. Select the date that the advance payment is due (use the agreement start date if due on signature)
6. Enter the full amount of the advance payment
7. Enter descriptive text to help explain the payment to the licensee. The description will appear on the invoice.
8. Click "Create" to save the payment milestone
9. Click "Next" to continue
10. Associate the appropriate rights, then click "Save" (Associations are used to determine when a particular term is applied to a sales transaction)
11. Success! Use the Actions icons to edit, delete, or clone the Advance
1. Triangle: show/hide the rights associated to the term
2. Pencil/Edit: change the name, dates, or recoupabilty
3. Lego/Edit: change the associations
4. Calendar/Edit: edit, add, or remove payment milestones
5. Delete: remove the term
6. Clone: make a carbon copy of the term for easy entry of multiple terms
