Royalties That Accrue Themselves and Foot to the Cent
Model each agreement’s terms - flat or tiered rates, minimum guarantees, and recoupable advances - and Fintra accrues the royalty as underlying sales post, recoups the advance before cash flows, and produces a statement that ties back to the ledger it came from.
Illustrative product view
The terms that actually appear in contracts
| Term | Behavior |
|---|---|
| Flat rate | Single percentage of a defined base |
| Tiered rate | Rate steps up (or down) as cumulative sales cross thresholds |
| Minimum guarantee | Tops the payee up to a floor when earned royalty falls short |
| Recoupable advance | Prepaid amount recouped from earned royalty before cash flows |
Accrued, stated, and reconciled
Royalty accrues as the underlying sales post, so the liability builds in real time rather than in a quarter-end spreadsheet. Each period produces a statement that foots to the ledger - earned royalty, guarantee top-ups, advance recoupment, and the resulting payable - with the calculation traceable back to the transactions that drove it.
Frequently asked questions
What royalty structures does Fintra support?
Flat rates, tiered rates that step across cumulative-sales thresholds, minimum guarantees that top the payee up to a floor, and recoupable advances that draw down against earned royalty before cash flows.
How do recoupable advances work?
An advance is carried as an unrecouped balance and recouped from earned royalty each period. The statement shows the draw-down explicitly, so you can see why a payable is still zero and when it will turn positive.
Does royalty accrue automatically?
Yes - royalty accrues as the underlying sales post, so the liability builds in real time and each period’s statement foots directly to the ledger it came from, with a traceable calculation.
Does Fintra pay the royalty out?
No, not yet. It books and states the payable, but the actual payment runs through your existing AP or bank setup. Automated payee payment is on the roadmap.
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