Royalty payment

Hello @SergioN1,

In QuickBooks Desktop, you can create a new expense account as use it as the line item when creating the royalty payment. Let me walk you through the steps on how you can accomplish this.

1. Go to Lists.
2. Select Chart of Accounts
3. Under Account, select New.
4. Choose Expense.
5. Enter the name of your new account. Say Royalty Expense.
6. Click Save & Close.

From here, you can go ahead and write a check with the line item using your newly created account. You can also memorize the check since you'll be processing the same payment for the next 6 months.

To do so, here's an article you can read to learn more about how you can write and memorize a check: Create, Modify, and Print Checks in QuickBooks Desktop.

Additionally, I've also included this reference helpful in understanding how stable is your business's financial status: Create and Manage Reports in QuickBooks Desktop.

You can always leave a comment below if you have follow-up questions with this or start a new thread if you have any other concerns. I'll be here to lend a hand. Stay safe!

I need to assign a percentage to each product according to the royalty of the author. And that didn't work. I have QB Enterprise.

It's nice to have you back, SergioN1. 

I'm here with all the information you could ever need on assigning a percentage on a product in QuickBooks Desktop. I'll walk you through how:

1. Go to the Lists menu and select Item List.
2. Look for the inventory item and double-click it.
3. Click on the Edit Markup tab.
4. Enter the desired percentage in the Markup Percent field.
5. Click OK. Then, OK.

I've attached screenshots for your visual guide:

The instructions are sure to help you assign a percentage on the product in no time!

I'd also recommend consulting your accountant to ensure your financial data will be accurate.

Also, I'm adding an article that lets QuickBooks change the prices of items on sales forms according to rules you create automatically.

You can tag me if you have any additional questions about the process. I'll be sure to get back to you.

Thank you so much for the idea.
When I change the MARKUP PERCENT, the RETAIL price changes

Hello there, SergioN1.

The system calculates the percentage difference between the selling price and its cost. If you change the markup percentage the sales price also changes. For more details, you can check out this link on how to run a profit margin analysis for your small business.

Feel free to use these links that will help you manage your inventory list: 

• Set up Advanced Inventory
• Use Advanced Pricing

Let me know if you have other questions about your products. I'll be here to help. Take care!

So What we are looking for is a way for Quickbooks to calculate royalties on our products... this should not change the price of the product.  Example.  We sell 100 books for the author it doesn't matter what the price is per their contract the author should always get a 10% royalty.  This should not change the price as the books are already sold and they sell for Suggested Retail Price that is agreed upon.  We have hundreds of authors so we would like to set up a royalty on each product that will generate a payment to each author based on sales of their product/book(s).  Most of us are having to do this manually which leaves lots of room for error so we are hoping we can set something up in quickbooks to automate this process.

Let me try to explain this a different way.  We have authors who are paid let's say 10% royalties for easy math on every book(product) of theirs we sell.  This doesn't change the price of the book as the book is sold at a negotiated suggested retail price.  It is a cost of goods sold so to speak.  Most of us have to maintain this manually which leaves lots of room for error.  Our sales numbers are already in quickbooks so it seems adding a royalty field to the product code would enable quickbooks to do all these calculations automatically so at period end we have the amount to be paid per product which could be run on a report for any specified period so we know how much to pay. If we place it as a mark up it will change the price to the wrong value which creates many more problems than it fixes.

Hey there, @Lori119.

Thanks for taking the time to follow along with the thread and sharing your concerns. 

For this one, I recommend consulting with your accounting professional. Your accountant can review your account and provide the best workaround solution based on your business needs. As what my colleagues have provided above is our only way of accounting for royalties. 

If you don't have an accountant, don't sweat it. You can find one here in our Resource Center. 

I understand how beneficial having more options would be for you and your business. With that said, I think this would be the perfect opportunity to submit this suggestion to our Product Development Team. Our developers review each request and consider them all for future updates. 

You can use the link I'm including below to submit your suggestion: 

• Send feedback in QuickBooks Desktop

Please let me know if there is anything else I can assist you with. Take care!