Accounts

General

Accounts can also be understood as a group of Contracts with the same Partner.

Per default an Account is cross-accountable, meaning all Contracts within an Account are offset against each other. A Contract with a negative result, e.g., due to an advance payment or marketing costs, debits Contracts with a positive result in the same Account, reducing them by the negative amount.

If an Account is not cross-accountable, meaning the Contracts within an Account are not offset against each other, the Account serves only for overview purposes and has no effect on the Contracts or their results.

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General

Partner

Select the Partner for this Account.

Cross accounting

Check if the Contracts assigned to this Account should be billed amongst themselves. This means that the revenue and costs from all Contracts in this Account will be aggregated for billing purposes. A Contract with a negative balance can be balanced out by a Contract with a positive balance within the same Account.

For example, if a producer has multiple projects and agrees that all Contracts from Project A should be billed amongst themselves, and all Contracts from Project B should be billed amongst themselves, but not between Project A and Project B, this can be achieved by creating these two Accounts and assigning the corresponding Contracts.

Accounting starts

Balance & Release

After a migration, you may need to specify the initial values ​​for an Account to ensure seamless billing from a previous system.

Select the year and billing period that should begin with the Balance last period and the Release of return reserves initial values.

Minimum guarantee

A minimum guarantee (MG) in the film industry is a contractually agreed-upon, non-refundable minimum payment that a distributor is obligated to pay a producer in exchange for distribution rights.

Unlike a regular advance payment under a licensing agreement, in the event of a shortfall in the distributor's accounting to the producer, the producer must cover the difference, i.e., repay the distributor. However, the minimum guarantee is exempt from this; the producer is only required to repay an amount sufficient to ensure that the MP always remains with the producer.