PocketSuite calculates your royalty from a royalty base, which is lower than your gross sales. This Spotlight video walks you through the formula and shows why you reconcile before you calculate.
Watch the video
This video is private. Reach out to your corporate team for access. In the meantime, browse the content below for general tips.
What you'll learn
- Set your percentage rate in Settings > Royalties and any flat fees in Settings > Royalty fees.
- Choose which deductions apply: refunds, sales tax, and gratuity. Each one is optional and they stack.
- Remember that only income marked as paid counts toward the royalty base.
- Reconcile first, calculate second, and submit last.
Quick reference: Royalty Calculation Example and Royalty Submission Checklist
Royalty calculation example (illustrative only, your deductions and rate will differ):
- Gross sales: $10,000
- Refunds: -$500
- Sales tax: -$200
- Gratuity: -$1,200
- Royalty base: $8,100
- Owed at a 10% royalty rate: $810
Royalty submission checklist. Run this every period, before you submit a payment:
- Confirm reconciliation has already been run for this exact period before you pull royalty numbers.
- Check the royalty base against Settings > Royalties (rate) and Settings > Royalty fees (flat fees) so both are current before the bill generates.
- Verify which deductions are toggled on: refunds, sales tax, and gratuity. Each one is optional and compounding, not automatic.
- Cross-check the Royalty dashboard's paid and unpaid bills for the period. Only income marked as paid counts toward the base.
- Confirm that any un-backed-out refunds or sales-tax mismatches flagged during reconciliation have been resolved, not just noted.
- Compare the final royalty number against your own worked calculation before you mark the bill paid. Don't submit on the dashboard total alone.