Sales Orders

Assisted with month end close, financial reporting, Ad Hoc reports and special projects as needed. Analyzed and prepared the Systemwide Revenue Bond Financial Statements in accordance with GAAP for yearly KPMG audit. Prepared Invoices and ensured that revenue is recognized in accordance with GAAP. Processed debit/ credit memos and proforma/ clone invoices per company policy and within GAAP. Involved in all aspects of the revenue cycle to ensure that 3Com’s revenue is recorded in accordance with GAAP. The amount owed is $0.091 per song, just like the rate for physical mechanical royalties.

Provided ongoing support, education and leadership relating to revenue recognition guidance and process improvements, supporting retained earnings all corporate initiatives. Reconciled, tracked, and monitored billable expenses and documented revenue internal controls.

Reviewed and analyzed contracts to identify appropriate revenue recognition treatment. Reviewed and evaluated revenue recognition implications for all incoming sales. Reviewed and analyzed client contracts for proper revenue recognition treatment and invoicing requirements. Scheduled revenue recognition, performing substantive in-depth analysis and documentation for completed deals.

Therefore, the lessee pays minimum rent or the actual royalty amount, whichever is higher. Such a guaranteed minimum amount so received by the lessor is called the minimum rent. The other 50 percent of the performance royalties are paid to the rights owner of the sound recording. Robert Herjavec, the older technology mogul offered a $300,000 cash investment for 25% of the company. But his offer came with a “royalty” clause that would bookkeeper pay him back $0.75 for each item sold. Mr. Raman, a scientist, owned a patent for the manufacture of electric blanket. Any short-workings is recoverable out of the royalties of the two years subsequent to the year in which short-workings may arise.

Some publishers automatically withhold a reserve on every new book, while others make a title-by-title decision based on the type of book . Since the reserve is still a liability, albeit a QuickBooks deferred one, it should not be netted from the total Royalties Payable liability account. Sublicense fee income represents the current amortization of the proceeds from these milestones.

Landlords are the persons who have the legal rights on mine or quarry or patent right or copybook rights. Other arrangements call for a fixed percentage of net revenues after certain outlays. For example, the miner might deduct the costs of equipment maintenance from the value of the gold she finds and then pay a percentage of the lower amount. In this blog, we are going to discuss the first method of passing the Journal entries i.e. without opening the Minimum Rent Account. The GL Accounting Summary report is generated by selecting the toolbar’s documents/print icon from within the selected royalty run record.

Business

Minimum Rent

Right of Recouping  It may contain in the royalty agreement that excess of minimum rent paid over the actual royalty (i.e. shortworkings), may be recoverable in the subsequent years. So, when the royalty is in excess of the minimum rent is called the right of recoupment . On the other hand, when the lessee is eligible to recoup the shortworkings in next 2 or 3 years from the year of its commencement, it is said to be floating.  Shortworking will be shown on the asset side of Balance sheet up to allowable year of recouping after that it will be transferred to profit & loss account .

Account Analysis

• Booked accruals, buyback gas and production handling agreements.Performed revenue variance analysis and account reconciliations.
• So, royalty expenses should be incurred when the sale of the licensed item is made.
• Analyse royalties payable balances, prepare related advance recoupment schedules and propose general ledger adjusting entries.
• Prepare timely general ledger to author sub-ledger reconciliations for assigned imprints.
• Assisted Program Directors with account analysis reports, funds available balances, and accounts payable and/or purchasing questions.
• Maintained and reconciled all revenue accounts through month-end journal entries and accruals.

In this case, lessee will become lessor for sub lessee and lessee for main landlord. Sometime, there may be stoppage of work due to conditions beyond control like strike, flood, etc. in this case, minimum rent is required to be revised as provided in the agreement. The rent, paid to the landlord for the use of land or surface on the yearly or half yearly basis is known retained earnings balance sheet as Ground Rent or Surface Rent. Stan Mack is a business writer specializing in finance, business ethics and human resources. His work has appeared in the online editions of the „Houston Chronicle“ and „USA Today,“ among other outlets. In this blog, we are going to discuss the second method of passing the Journal entries i.e. with the opening the Minimum Rent Account.

If payment is made to purchase the right or property that will be treated as capital expenditure instead of a Royalty. Some royalty arrangements have variable payments that guarantee the licensor some profit. The licensee agrees to pay the greater of a royalty payment or a fixed sum, known as minimum rent. During periods when the royalty payments would be low, the licensee pays the minimum rent, also known as dead or flat rent.

Prepared journal entries, account reconciliations, and performance of revenue analysis. Created and prepared journal entries that were accurate and compliant with company policies and applicable accounting regulations. Analyzed weekly aged trial balance accounts and monthly financial statements. Analyzed and resolved balance sheet accounts to ensure the accuracy of financial statements. Prepared allocations, recorded revenues, paid royalties, invoiced wellhead sales, verifying revenue on financial statements.

It means, lessor will receive a minimum fix rent irrespective of the reason/s of the shortage of production. However, if the sum of royalty is less than the minimum rent , then the payment will be based on the minimum rent (minimum royalty – minimum rent).  Difference of minimum rent and actual royalty is known as shortworkings where payment of Royalty is payable on the basis of minimum rent due to shortage in the production or sale. Some companies like OXO consider both the royalty and cash-buyout options.

Established internal monitor control procedures that guaranteed VSOE compliance and proper revenue recognition. Worked closely with the Billing team to process invoices and credit memos. Prepared on average of 70 sales invoices a day including credit memos when needed.

Updated Sox documents to reflect the current process and assisted the internal auditors in their Sox testing. Participated in SOX compliance review, prepared auditor requests and assisted in year-end audit. Audited correction files on a weekly basis to be in compliance with SOX and external controls. Tested accrual and deferred revenue/expenses schedules, researched open purchase orders, and retired fixed assets for SOX internal control compliance.

We are the home for music’s greatest artists, innovators and entrepreneurs. No problem – Our monthly membership has a free 3-Day Trial with full functionality. So give it a shot, see what you think… and get that much closer to landing your dream job. We’ve been connecting people in entertainment to the jobs they want since 1995 — but the industry doesn’t stay still. Sub-allocated NGL volumes from our processing market back to the shippers on Howard’s gathering system.

You can hire an auditor or certified public accountant to do this on a one-time basis as well. If possible, negotiate royalties so that they can be paid monthly, quarterly or semi-annually. In any case, be sure that you and your licensor are on the same page on the contract and payments terms. Make sure the artist or contract holder is fully aware of when they will receive their bookkeeping payments. This ensures that payments are rendered in a timely manner and in the correct amount. Assisted with day to day accounting functions including preparation of journal entries, account reconciliations and detailed account analysis. Participated in monthly/quarterly closes, including preparing and posting of journal entries, account reconciliations and variance analysis.

Coordinated with production analysts to verify volumes allocation for revenue distribution and variance analysis. Prepared and presented Balance sheet and Profit & loss variance analysis to management. Conducted monthly variance analysis on volumes and value trends for all properties and provided explanation for exceptions to management. Mentored less experienced staff in approach to variance analysis and account reconciliation. Produced various monthly reports to the Management Teams including variance analysis and commentary to explain variances.

Royalty Accounting

If the Company receives the $10,000,000 milestone from Luitpold, it will be amortized and recorded to sublicense fee income. The Company has certain agreements with Luitpold that cover an exclusive worldwide sublicense and license, trademark license, concurrent use, supply and royalty income relationship. For example, if royalty amount is 1,000,000/-& rate of TDS is 10%, then lessee will pay Rs. 900,000/- to lessor.

Reconciled Oil and Gas purchaser statements for imbalances between working interest owners. Provided prompt response to any royalty and working interest owner inquiries. Developed system of managing royalty owner inquiries increasing productivity within the group. Processed/booked missing revenue volumes plus any corrections to existing volumes through use of Excalibur. Recognized revenue in compliance with SOX legislation; specifically SOP 97-2, SOP 98-9, VSOE.