A contract defines the commercial agreement between your record company and a payee, for a specific account. It carries the terms used during royalty calculation and is assigned to the tracks and releases it earns on. For how contracts, accounts, and payees fit together, see How to use contracts, accounts and payees.
Fields marked with Required must be
provided when creating a new .
Fields
Contract name Required The name of the contract. Must be unique within your record company.
Contract code. An optional external code identifier for the contract.
Contract Status. Active or Terminated; new contracts start Active. Only Active contracts are included when royalties are calculated, and that also applies when an earlier period is recalculated.
Linked Payee Required The payee this contract pays.
Linked Payee Account Required The account, within that payee, whose balance this contract feeds. Selected automatically when the payee has only one account.
Start Date and End Date. Optional dates recording when the deal runs. They are for your records and do not limit which sales the contract earns on.
Cross-recoupable. Whether a negative closing balance transfers to the account, so the account’s other contracts can recoup it. On by default for new contracts.
Accounting Period Type. How often the contract accounts: Monthly, Quarterly, Half-Yearly, or Yearly. Shown when your record company allows more than one type. All contracts on one account must use the same type.
Threshold. An optional amount the contract’s closing balance must reach before it transfers to the account. Below it, the balance carries forward to the next period.
Opening Balance. An optional starting balance, entered while creating the contract or added later as an Opening Balance transaction while the contract has no other transactions. Recorded in the payee’s reporting currency, with an unrecouped position entered as a negative amount.
Sales Term. The term applied to the contract’s share of income, attached on the contract’s Terms tab. Optional, but without one the contract’s income waits in suspense instead of being calculated.
Deduction Term and Cost Term. The terms applied to deductions and costs, attached on the same tab. A missing deduction term means no deduction is taken; costs allocated to a contract without a cost term wait in suspense.
Cross Contracts. Rules that transfer, add, or subtract income or balance between this contract and other contracts, managed on the Cross-Contracts tab.
Notes. Internal notes.
Next steps
Create your first contract with the first-time setup guide. 
