What is the best way to record Royalties on manfactured items?

[Shannons69]

Just set up and now running Complete accounting 2007 - Previously done in a second 'Peachtree company' as a Purchase Order.

They have about 200 items out of 1500 that require a royalty payment to be made upon reciept of monies from customer. The payments are made on a quarterly basis to about 15 differnet vendors and steadly increasing

To be recorded = date of payment received / invoice# and name of customer / qty / item / amount (typically 20% of sales price).

As I mentioned - it was previously being recorded by using the Purchase Orders. At the time since we had two companies running (One just for Invoicing and Inventory control) the second for everything else.

I am afraid that if I continue it this way I will throw off the quanity count in Inventory? :confused:

What would be ideal would be a transaction automaitically created upon the sale/cash received of one of these items. Though ultimately I do not think that is possible.:(

Thank you in Advance for Any and All Suggestions.:D

Shannon

[rick Prindivill]

A Royalty Report as describe is similar to a Sales Commission Report based on Date Range, & Item Type. Such a report could be created using Crystal Reports based on Paid Sales and payment date range for sold items marked with a specific Item Type in Maintain Items.

[Shannons69]

Thank you very much for your thoughts Rick. I did take your suggestion into mind when I tackled the job today.

However since they have two seperate prices - Wholesale and Retail I felt that unless it is actually inputted into the system as a seperate transaction it would not be as accurate as is required.

I decided that since we are not discussing a HUGE number of additions the items that do have royalties paid have to have a second item # with a R at the end - set up as 'non-stock' to not effect the inventory.

A purchase order will then be created which will allow the items to be paid completely accurately. This will also give the ability of recording of Invoice number and customer name "In the PO # field" (I found today will not allow duplicates too)...:D

Thank you again...Hugz,

Shannon