General Accountant

This article is intended to serve as a guide only and does not replace professional legal counsel. Consult a royalties accountant or intellectual property lawyer before proceeding with your own royalty contracts. Financial statement auditors may call on forensic accounting experts when they notice significant irregularities in a company’s financial records.

Reconciled and analyzed deferred revenue, deferred expense and revenue accounts. Reconciled all revenue and deferred revenue accounts and maintained detailed support for reconciliations.

Analyzed customer contracts to validate the structure of pricing and licensing are consistent with company and accounting policies. Reconciled unbilled revenues, employee utilization and other balance sheet accounts 1. analyzed daily revenue and explained variance fluctuations Reconciled balance sheet accounts for inventory, amortization and prepaid accounts. Created various operational processes and balance sheet reconciliations to ensure SOX compliance. Reviewed charter contracts and ensured proper revenue recognition as well as adherence to company policies and procedures. Processed revenue transactions in accordance with authoritative guidelines and company policies, and maintained accounting records.

Royalty payments are treated as prepaid assets on the balance sheet and in your accounting transactions. You must record the advance royalty payment and periodic royalty payments in your accounting system.

Royalty payments based on the number of units produced fluctuate with your manufacturing operations. You can use an inventor’s idea to improve your own what is a bookkeeper operations by entering into a licensing agreement. The licensing agreement gives you the right to use the patented idea for a set period of time.

Reconciled A/R, A/P and intercompany accounts for Gulf Coast Deepwater properties. Provided support to the preparation of the month end flash including reviewing of projects, AR and WIP accounts. Processed a large volume of JIBS and Revenue transactions in BOLO accounting program for operated and non- operated wells. Assisted in the implementation of BOLO oil and gas accounting system, changing over from outsourcing accounting to in house. Utilized computer skills to efficiently move, translate and manipulate data between resident accounting system and spreadsheet/database environment. Assisted and provided royalty and working interest owners on volume and revenue inquiries.

Handled all aspects of accounts receivables and collections, with responsibility for completing all projects https://marketbusinessnews.com/bookkeeping-pains-law-firms/ accurately and on time. Partnered with many operational groups to resolve and clear old account balances.

How To Account For Royalty Payments

Responded to and resolved questions from royalty and working interest owners regarding revenue and royalty payments. Prepared reconciliations for accounts receivables and maintained division of interest files for royalty and working interest owners. Established internal monitor control procedures that guaranteed VSOE compliance and proper revenue recognition. Managed QuickBooks for small consulting firm including reconciliation of all bank statements and preparation of monthly financial reports. Handled the inventory/accrued product process including recording vendor bills, inventory and accrued product reconciliations through QuickBooks accounting system. Worked with systems designers in learning new sales billing system in order to train accountants.

Royalty, based on the production or output, will strictly go to the Manufacturing or Production account. In case, where the Royalty is payable on sale basis, it will be part of the selling expenses. At the end of each month you must account for the portion of the advance royalty online bookkeeping payment that is due by expensing that amount. For example, your advance royalty was $50,000 and your royalty payment is 5 percent of your net income. At the end of the month, calculate your royalties due by multiplying your net income of $60,000 by 5 percent, which is $3,000.

To record the payment, debit Royalty Expense for $3,000 and credit Prepaid Royalties for $3,000. The operations that do not use the patent idea are accounted for separately. Some licensing agreements require an up-front royalty payment in addition to the periodic payments. The royalty payments can be a percentage of your business net income or calculated on a per unit production basis. Royalties using the net income percentage usually range between 5 and 20 percent.

Interview individuals involved in the financial reporting process about inappropriate or unusual activity relating to the processing of journal entries. Handle day to day interactions with other departments and the general ledger accounting team to ensure internal and external customer questions are addressed timely and effectively. Recorded revenues and remitted royalties for wet gas and NGL sales associated with company and outside operated properties. Identified and resolved customer billing issues by working with Billing team and creating journal entries to recognize revenue.

Reconciled deferred revenue accounts and prepared A/R reports – DSO, Quarterly, and Advertiser revenue reports. Booked accruals, buyback gas and production handling agreements.Performed revenue variance analysis and account reconciliations.

Setting Up For Royalty Payments

For example, the licensing agreement requires a $50,000 advance royalty payment when you sign the licensing agreement. The journal entry to record the transaction is to debit Prepaid Royalties for $50,000 and credit Cash for $50,000.

• Performed month end closing procedures including revenue accrual and GL account analysis.
• Processed internal and external customer billing for projects and materials.
• Performed general ledger account analysis, reviewed project costs against budget and allocated monthly overhead and payroll to departments and projects.
• Developed comprehensive user’s manual to assist in training accountants in the use of new billing system.
• Prepared customer invoices, maintained inventory accounts, analyzed earnings variance reports, and responded to owner inquiries and audit requests.
• Developed the non-operated payout database, streamlined some revenue distribution and invoice payments for pipeline fees.

Accounting For Advance Payments

The BMS Amendment provides for a one-time, final payment from the Company to BMS totaling $1,500,000, which was paid in July 2011. No further royalty payments are due from the Company to BMS in accordance with the amendment. Payment made by the lessee on account of a royalty is normal business expenditure and will be debited to the Royalty account. It is a nominal account and at the end of the accounting year, balance of Royalty account need to be transferred to the normal Trading and Profit & Loss account.

Optimized contract review process to assure compliance with company revenue recognition policies. Analyzed weekly aged trial balance accounts and monthly financial statements. Researched and solved their accounts receivable inconsistencies, recorded revenue sales, What is bookkeeping and extrapolated accrual data to prepare financial statements. Some royalty arrangements have variable payments that guarantee the licensor some profit. The licensee agrees to pay the greater of a royalty payment or a fixed sum, known as minimum rent.

Jobs

Reviewed and booked all incoming OEM POS/Royalty reports in accordance with contract terms and booked royalties accordingly. Prepared monthly accrual journal entries and maintained the automated billing system and processed wire transfers. Assisted Program Directors with account analysis reports, funds available balances, and accounts payable and/or purchasing questions. Prepared examined and analyzed accounting records as well as other financial reports on a quarterly basis to ensure accuracy and compliance. Reviewed and reconciled royalty revenue, license revenue and deferred training revenue accounts. Maintained and reconciled Maintenance and SAAS revenue accounts, roughly 40% of all company revenue.

Prepared allocations, recorded revenues, paid royalties, invoiced wellhead sales, verifying revenue on financial statements. Prepared account reconciliations and analysis to support the financial statements. Processed invoices, input contract terms and conditions with billing to customers in accordance to the company compliance and GAAP principles. Taunton Press seeks a strong analytical senior accountant to join the accounting team. Sublicense fee revenue represents the current amortization of the milestone payments the Company previously received from Luitpold.

It means, lessor will receive a minimum fix rent irrespective of the reason/s of the shortage of production. A periodic payment, which may be based on a sale or output is called Royalty. Royalty is payable by the lessee of a mine to the lessor, by publisher adjusting entries of the book to the author of the book, by the manufacturer to the patentee, etc. Basically, it has its origin in the United States but in order to expand globally, it gives the right to use its name and manufacturing methodology under a franchise agreement.

Journal Entries In The Books Of Lessee:

Landlords are the persons who have the legal rights on mine or quarry or patent right or copybook rights. Mining Royalty − Lessee of a mine or quarry pays royalty to lessor of the mine or quarry, which is generally based on the output basis. In this blog, we are going to discuss the first method of passing the Journal bookkeeping online courses entries i.e. without opening the Minimum Rent Account. A general ledger transaction to reflect the changes in reserves and royalty advances not reflected in the payables entry. The GL Accounting Summary report is generated by selecting the toolbar’s documents/print icon from within the selected royalty run record.

Implemented Pivot Tables to extract data for review thus reducing the team review process by 6 hours a month. Managed the month/quarter/year-end GL close process for Tivoli systems and reported results to IBM Accounting. Recommended and implemented GL balancing process that streamlined the month-end close process, shortening the duration by approximately day. Assisted in the due diligence and closing processes, and managed the post-close process for each assigned transaction. Interacted with the external auditors and assisted with preparation of annual audit workpapers. Worked with external auditors to collect and prepare requested documentation.

In January 2012, the Company announced receipt of the CE Mark forGEM 21S in the EU. At the request of Luitpold, the EU regulatory authorities are re-evaluating the CE Mark. Given this re-evaluation, the EU regulatory authorities have suspended the GEM 21S CE Mark until the re-evaluation process is finalized. Luitpold has therefore notified the Company that it is evaluating whether the milestone conditions have been satisfied. The Company is considering its options in the event Luitpold does not make the payment.

Participated in the design and implementation of the contract database and billing system. Provided financial information and audit schedules to co-workers and other departments, on monthly basis. Participated and contributed to the annual audit process and internal audit/controls reviews, including preparation of audit schedules.

Assuming net income remained the same for the next period, a different set of entries would be made. First, the royalty expense account would be debited for the full royalty amount, $7,000. The prepaid royalty account now only totals $3,000 ($10,000 original minus $7,000 from last period).