What are Royalty Splits?

Royalty Splits define how revenues and expenses are structurally categorized and allocated within a Contract.

A Royalty Split does not define percentages or amounts. It defines what type of revenue or expense is being shared and under which contractual category it falls.

Royalty Splits act as the structural layer of royalty accounting. They determine where a revenue or expense belongs before any Royalty Rates are applied.

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Role of Royalty Splits in Reprtoir

In Reprtoir, Royalty Splits serve three essential purposes:

• They categorize revenues and expenses by exploitation type.
• They define which contractual terms apply to a given revenue or expense.
• They provide the structural basis on which Royalty Rates are applied.

Royalty Splits always exist inside a Contract.
They have no standalone meaning outside of a contractual context.

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Royalty Splits and Contracts

Each Contract type in Reprtoir contains its own predefined list of Royalty Split Types.

This means:

• Royalty Splits are contract specific.
• The available Split Types depend on the nature of the rights covered by the Contract.
• The same revenue may fall under different Split Types depending on the Contract it is processed through.

Royalty Splits are configured at the Contract level and are then used automatically during Income and Expense processing.

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Default Royalty Split Types by Contract Type

The following Royalty Split Types are available by default in Reprtoir and represent the system source of truth.

Label Contract – Money Out

(Audio and Video Assets)

• Digital Sales
• License Rights
• Synchronization Rights
• Neighboring Rights
• Physical Sales
• Direct Incomes
• Expenses

Publisher Contract – Money Out

(Works)

• Mechanical Rights
• Performance Rights
• Synchronization Rights
• Print Rights
• Direct Incomes
• Expenses

Merchandising Contract – Money Out

(Products)

• Merchandising Sales
• Direct Incomes
• Expenses

Other Contract – Money Out

(Non asset based agreements)

• Direct Incomes
• Expenses

Each Split Type represents a distinct accounting and contractual category.
Royalty Rates may differ from one Split Type to another within the same Contract.

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Calculation Base (Net vs Gross)

Each Royalty Split operates on a defined Calculation Base, which determines whether the split applies to Net or Gross amounts.

The Calculation Base is defined at the Contract level and applies per Royalty Split.

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Custom Royalty Split Types

Reprtoir allows advanced users to create Custom Royalty Split Types.

Custom Split Types are used when standard categories are not sufficient to reflect contractual reality, such as:

• specific commercial clauses
• internal reporting needs
• atypical exploitation models

Custom Royalty Split Types:

• are attached to specific Contract templates
• behave exactly like default Split Types
• can have their own Royalty Rates and Calculation Bases

They should be used carefully to preserve accounting clarity and consistency.

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Relationship with Royalty Rates

Royalty Splits define what is shared.

Royalty Rates define how much is shared.

A Royalty Split without a Royalty Rate has no financial effect.

A Royalty Rate without a Royalty Split has no structural context.

Both concepts work together but serve distinct roles and are documented separately.

This strict dependency guarantees contractual accuracy, accounting consistency, and full auditability.

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