If you have paid out an advance to a collaborator or spent money on this release, you can set up royalty splits and recoup rules one time, and then let Releese apply them automatically with clear, transparent ledgers every collaborator can understand.
To add a recoup, open your release and go to the Earnings page (left sidebar) and click Recoup Expenses at the top of the page (or just scroll down to the bottom of the page the Earnings page), and then click the purple +Create Recoup button (right hand side).
There are 4 types of recoups to work with :
Advance : Advance transactions represent when the product owner pays out a royalty advance to a rights holder. Advances are meant to bring a rightsholder's balance below zero.
This amount is recouped against a specific split holder and paid directly in the Release owner's Wallet.
If a release owner pays a royalty advance to a split holder, Releese will pay the split holder's share of Distribution royalties to the Release owner's Wallet until their accounting balance is no longer negative.
Income : Income transactions represent when a recording or album receives earnings that are accounted to rights holders.
This amount is split between all split holders according to their splits.
Examples of Income transactions are streaming royalties, CD sales, or master sync licensing fees.
Expense : Expense transactions represent when the product owner has spent money on an asset, which needs to be recouped equally amongst rightsholders.
This amount is recouped between all split holders according to their splits, including the owner of the Release.
Examples of Expense transactions are artwork costs, mastering costs, or marketing costs.
Payout : Payout transactions represent when the product owner pays out royalties to a rights holder. Payouts are meant to be used to bring positive balances down to zero.
This amount is recouped against a specific split holder and paid directly in the Release owner's Wallet.
If a release owner pays a payout to a split holder outside the platform, Releese will pay the split holder's share of Distribution royalties to the Release owner's Wallet until their accounting balance is no longer negative.
The transaction fields are to be entered for your own team’s clarity, so give your recoups as much detail as is needed within the Title and Description.
Input your recoup amounts, and select your collaborators where applicable.
Click Add Transaction, and your recoup is set.