Royalty Calculations

If you are interested in the complete Royalty Management process, please read the articles about Royalty Management with DMP, or watch the relevant videos from Related Videos. This document describes only a single step in this process.

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Outgoing royalty statement

DMP is extremely fast in calculating royalty distributions. Incoming royalty statements in almost any CSV format can be processed. Output will be in a similar CSV format, with several additional columns.

Incoming formats

Incoming statement must be a CSV file with a header row. It can have any number of columns, in any order, as long as it has:

  • a column with one of these identifiers:
    • internal work ID
    • sender’s work ID, imported through work acknowledgements
    • ISWC
    • ISRC
  • a column with amount to be distributed, values must be numeric

Note

Matching by internal work ID only works for musical works that have been exported at least once (as CSV, CWR or JSON).

Values for these columns must be present in all rows.

In most cases, no pre-processing is required. Most of societies and other senders of royalty statements have an option of sending them in CSV format.

Outgoing formats

Outgoing format is a CSV file. It has all the columns of the incoming file. Each incoming row will be copied for every participant who shares in distribution. Additional data will be provided in additional columns at the end.

If no matching work is found, the original row is still copied, and an error is shown in Interested party column.

Additional columns depend on the used algorithm.

Algorithms

DMP has two different algorithms for calculating royalty distributions.

In both algorithms, user has to select:

  • column containing the identifier
  • type of identifier
  • column containing the amount

Both algorithms add these columns:

  • Controlled by publisher (%)
  • Interested party
  • IP Account Number
  • Role
  • Share in amount received (%)
  • Net amount

Split by calculated share

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Royalty calculation form: Split by calculated share

In this algorithm, one additional information is required:

  • column containing the type of right (performance, mechanical, sync) or the type of right applicable to the whole file.

The amount in each row is split between controlled writers and the publisher, using the publishing agreement shares from the settings and manuscript shares.

Outgoing rows are generated for each controlled writer in work and the publisher.

In addition to columns added by both algorithms, this one also adds:

  • Right type
  • Owned Share (%)

Split by manuscript share and apply fees

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Royalty calculation form: Split by manuscript share and apply fees

This is default algorithm.

One additional information is required:

  • default publisher fee, to be used when the fee is set neither in the writer in work, nor in the writer.

For each incoming row, each controlled writer in work receives one row in the output file. The amount is split among controlled writers, based on their relative manuscript shares. The fee is deducted from this gross amount, resulting in net amount to be paid to the writer.

Publisher fee is taken from the first available of:

  • writer in work
  • writer (for general agreements only)
  • default publisher fee from this form

Note

If publisher fee is empty, it is not used, and the next option is taken. If it has value 0, then no fee is applied (zero fee), and next option is not considered.

In addition to columns added by both algorithms, this one also adds:

  • Manuscript share (%)
  • Amount before fee
  • Fee (%)
  • Fee amount

Post-processing

Excel or an alternative is the best tool for post-processing, especially creating outgoing statements.

Outgoing royalty statements

For creating outgoing statement, use pivot tables, filtering by Interested party column. You can design outgoing statements however you wish.

Note

If no matching work was found, there will be a row with an error message in Interested party column. Use the same filter to make a statement with unmatched rows.

Foreign currencies

All amounts calculated by DMP are in the same currency as the incoming data. Use a dedicated exchange rate table and VLOOKUP function for conversions.

Precision

For calculations, precision exceeds the number of decimal places in any currency. You are advised to round up only the totals, not the amounts in rows.