What are Corrections?

Once payments (statements, fees are advances) are sent to your clients, Label Engine marks all the incoming statements (royalties, sales and expenses) included within that payment as having been paid to clients. 

Previously if a statement had been marked as paid, any changes made to that statement would not be reported in subsequent payments to the client. The change in allocation would be reported as a "Previous Balance" and the updated royalties not included in the csv file that was sent to clients.

To rectify this, we have launched a system called "Corrections". Once a statement has been marked as paid it can no longer be edited directly. All royalties are locked and what has been paid to a client does not change. Instead, a correction is made, which consists of a royalty to negate the original royalty, plus a duplication of the original royalty which can be edited. These new royalties are added to a new "hidden" statement that is linked to the original statement, but is not marked as paid that it so can be included in future payments to clients. Clients will see both the negation royalty and any updated or added royalties, with the original statement information marked as "(Correction)".

To simplify this process for you, we have made it work in a very similar way to how statements are edited once they have been completed. If you are trying to make changes to a statement that has been paid you will see a warning message along with a "Make Corrections" button. Click this button to enter a corrections mode and begin adding or deleting royalties and allocations as usual. To edit a royalty, you can click the "Make Correction" button when viewing it. Once you have finished your corrections, simply click "Apply Corrections". If corrections are not applied, they will not be reported to your clients and the original royalties and allocations will remain in place. You can view a history of the corrections made for the statement by clicking 'Correction History' - this will show you a breakdown of which royalties are added and which are removed when you apply your corrections.

Once a correction statement has been marked as paid, further corrections will be added to a new corrections statement. This is shown in your corrections history for the original statement.

It's important to note that by clicking "Make Corrections" or "Edit Corrections" you are only affecting the status of the most recent round of corrections that you have made. Clicking "Edit Corrections" does not put the entire statement in the same 'editing' status that it does when clicking "Edit Statement". If you wish to cancel an entire statement there is an option to "Delete Entire Statement" which will add corrections for every active royalty, however the statement will remain.

Also important to note is that once a statement is marked as paid, that statement will remain marked as paid if corrections have been made to it, even if all payments containing the statement have been cancelled.

For sales and expenses, the corrections process has been simplified further - you are able to add, edit and delete items as you would normally. Label Engine will handle the corrections for you and add them when necessary.

 

Example:

A royalty statement "Royalties Jan 2017" contains 2 royalties as follows:

Lazy Rich - Opus | 4 copies | $4.00

Hirshee - Royal Flush | 10 copies | $10.00

 

A payment is created for Lazy Rich -  "January 2017". Lazy Rich receives a csv as follows:

Lazy Rich - Opus | 4 copies | $4.00

Once this payment has been sent to Lazy Rich, the royalty statement "Royalties Jan 2017" is marked as paid. Any changes that need to be made to the statement will now be made as corrections.

 

It is decided that the royalty statement "Royalties Jan 2017" needs to be corrected. Hirshee's royalty needs to be edited. By clicking "Make Corrections" and editing the royalties within label Engine, correction royalties are automatically inserted into a corrections statement linked to "Royalties Jan 2017";

 

Lazy Rich's royalty must be cancelled. Doing so creates a correction royalty as follows:

Lazy Rich - Opus | -4 copies | -$4.00

 

Hirshee's royalty must be edited. Doing so creates two correction royalties as follows:

Hirshee - Royal Flush | -10 copies | -$10.00 (negation)

Hirshee - Royal Flush | 5 copies | $5.00 (edited royalty)

 

When the next payment "February 2017" is sent out, to both clients this time, each client will receive royalties as follows:

 

Lazy Rich has already been sent the original royalty from "Royalties Jan 2017" in his "January 2017" payment and will therefore only receive the correction in "February 2017".

Lazy Rich - Opus | -4 copies | -$4.00 (Correction)

 

This is the first payment sent to Hirshee, therefore he receives the original royalty, the negation and the new royalty. The total of all royalties will be equal to the value of the edited royalty, $5.00.

Hirshee - Royal Flush | 10 copies | $10.00 (Original)

Hirshee - Royal Flush | -10 copies | -$10.00 (Correction)

Hirshee - Royal Flush | 5 copies | $5.00 (Correction)

 

 

 

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