Royalties

Royalties depend on the specifications in the author contract. Whenever a contract is signed including a royalty clause, create an entry in the royalty spreadsheet.

Each year on June 1, royalty reports for those books that have accrued royalties until April 30 of that year are sent out.

Royalties broadly fall into two payment catagories:

1. Fixed payment per book after passing a sales threshold.
2. Fixed percentage of the sales revenues after deduction of a threshold of production costs and overhead (calculated every year as part of the annual report), with any book subventions added to the threshold.

Authors have the options to receive the royalties via check, or to return them to punctum as a donation, in which case make the following type of journal entry: