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Processing Wholesale Orders

When processing wholesale orders, you act as both publisher and retailer. Unlike standard distributor sales (where Amazon, LSI, or other distributors automatically deduct their commissions), you must manually calculate the net royalty amount by deducting your costs.

Key difference: Wholesale orders require manual currency conversion since no distributor payment exists—you receive the gross amount directly.

Before You Begin #

Required Information #

  • Sales data from your accounting system (e.g., QuickBooks, Xero)
  • Print costs per unit
  • Discount rates applied
  • Average exchange rates for the period (if dealing with foreign currencies)

Important Notes #

  • If you have automatic payment creation enabled (in Settings), sales in your publisher currency (e.g., USD) are automatically given payments in Royalties HQ.
  • Foreign currency sales require manual conversion
  • Always work with net amounts (after deducting discounts and costs)

Step-by-Step Process #

Step 1: Prepare Your Sales Data #

  1. Export wholesale sales data from your accounting system
  2. Organize by currency and time period
  3. Calculate the net royalty amount for each sale:

Net Royalty = Gross Sale - Discount - Print Costs - Other Costs

Step 2: Process Sales in Publisher Currency #

If your wholesale sales are in your publisher currency:

  • The system automatically creates income payments (if you have this enabled in Settings )
  • Simply verify the amounts are correct
  • No further action needed

Step 3: Process Foreign Currency Sales #

For each foreign currency:

  1. Sum the net royalty amounts
    • Group all sales in that sale currency, for the royalty period.
    • Total (sum) the net royalty column.
  2. Find the average exchange rate
    • Obtain the average exchange rate for the period (this tool is useful – remember to set the currencies and date period)
    • Example: GBP to USD average for Jan-Dec 2024
  3. Convert to publisher currency

Payment Amount = Total Foreign Currency Sales × Average Exchange Rate

  1. Create the payment in Royalties HQ
    • Enter the converted amount as a single income payment in Royalties HQ
  2. Link the payment
    • Connect this payment to ALL sales batches for that currency and period

Step 4: Verify and Complete #

  1. Repeat for all wholesale sales currencies
  2. Check all foreign currency batches have linked payments
  3. Confirm payment amounts match your calculations
  4. Review for any missing or duplicate entries

Example Workflow #

Scenario: Publisher with USD as base currency, processing GBP wholesale sales (data is illustrative only).

  1. January-June 2024 GBP Sales
    • Total net royalty (after commission and costs are deducted): £10,000
    • Average 2024 GBP→USD rate: 1.25
    • Payment to create: $12,500
  2. In Royalties HQ:
    • Create income payment: $12,500
    • Link to: All GBP sales batches Jan-June 2024

Tips for Efficiency #

  • Batch by period: Process 6-month or yearly batches to reduce entries
  • Consistent formatting: Maintain standard formats for easier processing
  • Document rates: Keep records of exchange rates used for each period
  • Regular processing: Don’t let wholesale orders accumulate

Common Issues and Solutions #

Missing cost data

  • Ensure all print costs and discounts are recorded before processing
  • Check your accounting system for complete cost breakdowns

Exchange rate variations

  • Use official average rates for the period
  • Be consistent with your rate source

Payment linking errors

  • Verify all batches for the currency/period are selected
  • Check for duplicate sales batches before linking

Best Practices #

  1. Always deduct all costs before calculating royalties
  2. Process regularly to avoid backlogs
  3. Keep detailed records of conversions and calculations
  4. Verify totals match your accounting records

Remember: Wholesale order processing is the only scenario in Royalties HQ requiring manual currency conversion. Take extra care with these calculations to ensure accurate royalty distributions.