At the highest level, a Contract is created for a certain time period as defined by a Start Date and an End Date. It records the Origin Region from which a sales transaction can be shipped, as well as the Sell Region to which it can be shipped.
- The first element of the contract defines the Brands that are assigned to the Contract
- The second element is the sales volume, which is expressed as a Guarantee Amount that is to be reached by a certain Due Date. These attributes are stored in the Contract Detail table
- The last element is the Payees that will earn a certain Rate Percentage of the sales volume
These three elements are used in the Royalty calculations.
Text from the user manual: The next step is to create Contracts, which defines the agreement about how Royalties are calculated. Contracts are assigned to Brands at any level. The lowest Brand level in the “tree” to have a Contract assigned to it will be used for calculations. This is true even if there is a Contract assigned to the parent Brand of a Brand. The Contract most specific to a Brand will always win.
How to Create a Contract
To open the Contracts list page:
- Go to the Home page of the Business Manager Role Center
- Expand the Royalty menu
- Click the Contracts selection
This opens the Contracts list page, which is used to manage the contracts
To see the details of a Contract, click one of the contract numbers. This will open the Contract Card with the details of the contract that you selected. You can also open the Contract Card with a new record by clicking on the + New button at the top of the screen.
In this example, the MATTEL2020 Contract specifies that sales from the NORTHAM Origin Region to the NORTHAM Sell Region are allowed for the time period between January 1, 2020 and December 31, 2020.
The main element of a contract are the Brands. Each contract can have an unlimited number of brands, and there is no restriction for how many contracts a Brand can be assigned to.
- From the Contract List or the Contract Card, open the Navigate menu
- select the Brands selection to open the Contract Brand screen
This opens the Contract Brands screen, where you can assign Brands to the currently selected Contract
In our sample data, we have selected both the AMGIRL and the BOBTHEBLD brands as part of our contract.
To select a Brand:
- Put your cursor in the Brand ID field
- Click the dropdown arrow
- Select the Brand that you want to assign to the Contract
There are no restrictions to which contract brands are assigned. Any given Brand can be selected for multiple Contracts at the same time. Go to [the Brand documentation](brand.md) to read more about Brands.
The Contract Details defines the Minimum Guarantee Amount that has to be sold by a certain Due Date, which is the basis of the Royalty Calculation. To open the Contract Details page:
- Open the Navigate menu
- Select Details
This opens the Contract Details page:
In our sample data, we have specified 4 Due dates with their Minimum Guarantee Amount as the sales volumes to calculate Royalties for.
The final element of a Contract specifies who will get paid. Go to [the Payee documentation](payee.md) to read more about Payees. To open the Contract Payees screen:
1. Expand the Navigate menu on the Contract List or the Contract Card
2. Click on Payees
This opens the Contract Payees page:
You may have to toggle the Edit List button to make the page editable, so that you can define a Rate Percentage for each Payee that is selected on this page. In our sample data, we have defined two Contract Payees: BSMITH gets 3%, and MATELL gets 4% Royalty for this Contract.
Note that all the selections on the Navigate menu are available on the Contract list page as well as the Contract Card page