Using cross contracts to transfer, add to or subtract from

Cross contracts are recurring rules that use one contract’s royalty income or balance to adjust another contract when you calculate an accounting period. For example, Nora Lane Album Deal can transfer 20% of its royalties to Nora Lane Singles Deal each period. The contract where you create the rule is the source. The existing contract you choose in Target Contract is the target.

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Choose what happens to the amount

Operation determines which contract changes. Suppose Nora Lane Album Deal has EUR 1,000 in royalties and Nora Lane Singles Deal has no balance. With Income Always and a Rate % of 20, the rule uses EUR 200: This example has no opening balance, costs, reserves, or other transactions and uses one rule. The amounts are before the normal transfer from each contract to its account. Use Transfer when you’re moving a share of royalties between deals. Add To and Subtract From leave the source unchanged, so they increase or reduce the combined amount owed across the two contracts. Each movement appears by name in the Transactions list on the statements and PDFs of the contracts it changes. A Transfer shows on both, for example Transfer to contract ‘Nora Lane Singles Deal’ on the source and Transfer from contract ‘Nora Lane Album Deal’ on the target. Add To and Subtract From show only on the target, as Added by contract ‘Nora Lane Album Deal’ or Subtracted by contract ‘Nora Lane Album Deal’. See where each transaction appears.

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Choose which amount to use

Mode determines the amount that Rate % applies to:

• Income Always uses the source’s royalty earnings for the period, before costs and opening balances. It doesn’t include incoming cross-contract transfers.
• Balance Always uses the source’s balance, including its opening balance, royalties, costs, reserves, other transactions, and incoming transfers. It can use a negative balance.
• Balance If Positive uses that balance only when it’s above zero.

Keep the same EUR 1,000 in royalties, but give Album Deal an opening balance of EUR -1,200. Its balance is now EUR -200. At 20%, Income Always still uses EUR 200, Balance Always uses EUR -40, and Balance If Positive skips the rule. Use Balance If Positive when the source must recoup its negative balance before sharing money. With an always mode, a negative amount reverses the operation’s effect: transferring EUR -40 adds EUR 40 to the source and deducts EUR 40 from the target.

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Create a cross contract

Both contracts must belong to the same record company and have the same Accounting Period Type. If you add the same target twice, Qlero keeps only the first rule. A rule can’t target its own source or form a loop, such as Album Deal transferring to Singles Deal and Singles Deal transferring back. Saving a rule doesn’t immediately move money. Period calculation creates the cross-contract transactions; when the contracts use different reporting currencies, Qlero converts the amount using the period’s exchange rates.

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Change or remove a rule

Change a rule. Open the source contract’s Cross-Contracts tab, edit its fields, and click Save Updates. Remove a rule. Click the × on its card, then click Save Updates. The rule no longer applies to future calculations; removing it doesn’t undo transactions already calculated.

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Next steps

• How to use contracts, accounts and payees explains how contract balances flow through accounts to payees.
• Contract glossary explains the other settings on a contract.