Automatic Calculation of Royalties on AR Invoices

[Former Member]

Hi Experts,

Can anyone please explain the process of how to configure of automatic royalty calculation of AR Invoices?

I know that we have to create the pricing procedure for that . Our client is in Beer selling business.

Thanks and Regards,

Ruby

[Former Member]

Ruby

You may use Rebate functionality to do this.

Set up appropriate ( customer based, group based, material based etc) rebate pricing conditions in the pricing procedure and pay attention to rebate basis, this is the subtotal in the pricing procedure that you would like to use for rebate (royalty) calculations.

Then set up rebate agreements ( master data) for the royalty recipient inclusive of rebate conditions for royalty rates. Royalty would accrue out of each invoice and then you may settle (pay) the amounts to Recipients periodically or at the end of the year.

Follow this link to documentation:

http://help.sap.com/erp2005_ehp_04/helpdata/EN/dd/56128a545a11d1a7020000e829fd11/frameset.htm

There is also a Royalty Management functionality in SAP but I don't think you need it.

Hope this helps.

[Former Member]

Thank you very much Chandra Sekhar.

Pardon me .. This is my first time doing Royalties.

The requirement here with my client is ., It is in the Beer selling business.

They have a company code set up for Canada and whenever they use/produce and sell the brands that belong to another company code (USA), it pays the Royalty to the US Company code . The AS IS Royalty payment is

GSV u2013 Price (Invoiced amount) u2013 Excise $31.22 / HL

LTOu2019s, Discounts , rebates:

Provincial Beer Tax = NSV.

So.. on NSV we need to calculate either 9% or 10% of Royalty to the US Company code.

The Canada Company code have the pricing procedure already set up with lot of conditions for GSV (Gross sales Value) which is the price that was charged to customers.

How can we configure for this requirement in SAP?

Also they have some unique cases one of which is when there is third party which sells the brands that belong to US company code but it sells on behalf of canada company code , they want to exclude these royalties from the royalties that they pay to US company code.

How can we deal with these kind of exceptions?

I appreciate your time .

Please let me know the procedure for this.

Thanks and Regards,

Padmaja.