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A contract’s terms set the rates it pays, scenario by scenario: a physical sale can pay a different royalty rate than a download, and a sale in Germany a different rate than one in Japan. Every contract needs at least a sales term; until it has one, Qlero cannot price its sales and holds them in suspense, the waiting area for sales it cannot calculate yet. There are four types of term:
  • Sales terms set the royalty rate a sale pays, and are the one type every contract needs.
  • Cost terms set what share of a cost is allocated to the contract.
  • Deduction terms reduce the royalty rate selected by the sales term, either by subtracting percentage points from it (Absolute deduction) or by multiplying it by the percentage you enter (Relative deduction), so a 20% rate with a 90% relative deduction pays 18%.
  • Escalation terms change the rate once the contract’s totals cross thresholds you define, for example a higher rate after 100,000 units.
A contract holds at most one sales term, one cost term, and one deduction term, plus any number of escalation terms. Agreements › Terms lists all your terms, filtered to the shared ones by default, and each contract’s Terms tab shows what that contract uses.
Creating and linking terms requires write access to Agreements. If you don’t see the Create New button, ask your administrator.

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Creating a term

1

Go to Agreements › Terms

Pick the tab for the type you want: Sales, Costs, Deductions, or Escalations. Then click Create New › Single. Terms created here are shared, so any contract can use them.
2

Name it

Give the term a Name you will recognize from a dropdown later, such as the deal type it prices. Notes is optional and internal.
3

Build the rules

Each rule reads as a sentence, and the builder shows the badges to match: When a sale is in a territory, AND it meets your conditions, THEN it pays a rate.Every rule starts with When Territory =, set to Worldwide by default. From there you have two choices at every level:
  • Click + to add a condition below it: Sale Type, Format, Price Category, Source, or Store, in that order. Each dropdown offers your configured values plus All, and for Sale Type, Format, and Price Category also your groups.
  • Or end the branch with a rate: pick a Calculation type, which sets the sales amount the royalty percentage applies to (Gross Receipts, Net Receipts, Retail Price, Unit Price, or PPD, the published price to dealer), and enter the percentage.
A common term is just a rate per sale type, sometimes split once more by format:
  • When Territory = Worldwide, AND Sale Type = Stream, THEN 20% of Net Receipts
  • When Territory = Worldwide, AND Sale Type = Download, THEN 18% of Net Receipts
You do not need to use every level. A rate placed straight after Sale Type covers every format, source, and store, and picking All at a level is the same as leaving the level out.+ Add new territory at the bottom starts another branch, so one term can price Germany differently from the rest of the world.
4

Click Save Term

The term appears in the list, showing how many contracts use it.
Cost terms use the same builder with a shorter tree: Territory, then Cost Type, then an allocation percentage; the contract carries that share of a matching cost, scaled by its participation rate. Escalation terms look different at the end of the branch: instead of one rate they hold a table of tiers, each saying what the threshold is and how the rate changes once it is reached. When several rates in one term could match the same sale, the most specific one wins, and the top-to-bottom order of branches on the screen makes no difference. How the terms hierarchy works walks through the rules with examples. Terms attach on the contract’s Terms tab, one sub-tab per type. On an empty sub-tab you get two cards:
  • Choose from existing lets you pick one of your shared terms. The picker only lists shared terms, and ones already linked to this contract are grayed out.
  • Start from scratch opens the empty builder. A term created here belongs to this contract alone; it is not shared and does not appear on other contracts.
Escalation terms are the exception to one-per-type: a contract can hold several. Unlike branches inside a term, the escalation terms on a contract do apply in card order; drag the cards to change it.

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Shared terms and contract-only terms

Use a shared term when a change should reach every deal that uses it, and a contract-only term when it should not. A contract-only term (created from scratch on the contract) is editable right on the Terms tab, and removing it deletes it, since nothing else uses it. A shared term shows a Shared Term badge and is read-only on the contract page. For sales, cost, and deduction terms the menu next to it gives you three ways out; a shared escalation term only offers Un-link:
  • Edit Term opens Agreements › Terms, where you find the term and change it for every contract that uses it.
  • Un-link detaches it from this contract but keeps it for the others.
  • Un-link and duplicate swaps it for an editable, contract-only copy, which is the way to customize one contract’s pricing without touching the rest.
Editing a shared term changes the pricing of every contract that uses it. Check the term’s Contracts tab first to see what it is used in, and prefer Un-link and duplicate when a change should apply to one contract only.
A contract-only term cannot be picked from another contract. If it turns out to be worth reusing, find it on Agreements › Terms with the Shared Term filter set to No and use Duplicate; the copy is shared and can be linked anywhere.

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Assign terms in bulk

To put one term on many contracts, select them on Agreements › Contracts and open Bulk Actions, then Assign Sales Term, Assign Cost Term, or Assign Deduction Term. You can pick an existing shared term or build a new one, which is saved as shared so all selected contracts can point at it. If some of the selected contracts already have a term of that type, Qlero warns you and lists them, because assigning replaces what they have. A replaced contract-only term is not deleted; it stays on Agreements › Terms, no longer linked to anything. There is no bulk action for escalation terms.

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Next steps