Royalty Statement Evidence Packet

1. Packet decision

Decision: PARTIAL ROYALTY-STATEMENT EVIDENCE PACKET AVAILABLE — the agreement, statement, distributor data, reserves, audiobook deductions, advance recoupment, FX, and payment difference can be organized, but the controlling rate bases and payment bridge remain unresolved.

2. Scope and boundary

This review covers R1–R8 for the supplied publishing periods and US, UK, and EU activity. It does not interpret the contract, decide entitlement or audit rights, approve payment, choose accounting or tax treatment, or certify compliance.

3. Source register

4. Rights-to-statement map

Build a format × territory × channel matrix linking each candidate agreement rate to statement lines, distributor records, unit or revenue basis, deductions, reserves, FX, recoupment, and payment.

Status: RATE BASIS, CHANNEL MAPPING, AND PERIOD POPULATION REQUIRE RECONCILIATION.

5. Royalty chronology

6. Agreement, statement, and payment review

Format and territory rates

Create a rate register with format, territory, channel, clause, rate type, base, effective date, and amendment status. Reproduce supplied formulas only after linking each line to a candidate rule.

Do not decide which clause controls.

Ebook population difference

R3 shows 1,360 more ebook units than R2. Reconcile distributor, ISBN, territory, sale date, reporting cutoff, returns, free/promotional units, bundles, subscriptions, and later-period carryover.

Classify differences as timing, unmatched line, return, adjustment, duplicate, excluded channel, or unknown. Do not call them underreported royalties before the population and contract basis are supported.

Returns and reserves

For R4 capture opening reserve, additions, returns, releases, closing reserve, period, format, and source clause. Split the €9,800 into actual returns and reserve movement where supported.

Do not assume every reserve is immediately payable or permanently deductible.

Audiobook basis

R5 shows a platform fee deducted before reported royalty revenue. Build parallel arithmetic using supplied gross and net figures and identify what contract language each scenario would require.

Do not choose gross or net receipts as the controlling base.

Advance recoupment

Build an R6 ledger with original advance, prior recoupment, current candidate royalty, current recoupment, and ending unrecouped balance.

Keep earned royalty, payable royalty, and recoupment separate.

FX

For R7 preserve source currency, target currency, rate source, rate date, period, and converted amount. Calculate both supplied methods where possible and show the variance.

Do not select the controlling FX method.

Payment bridge

Bridge R2 to R8 using supported items:
statement candidate balance
→ advance recoupment
→ prior adjustments
→ supplied deductions or withholding
→ credits
→ FX effects
→ payment.

The €6,400 gap remains unresolved.

7. Gaps and conflicts

• G1 — Rates: format/channel/territory mapping is incomplete.
• G2 — Ebook units: R3 exceeds R2 by 1,360 units.
• G3 — Reserves: €9,800 lacks a complete roll-forward.
• G4 — Audiobook: platform-fee treatment is unresolved.
• G5 — Advance: current recoupment is unclear.
• G6 — FX: two methods are represented.
• G7 — Payment: R8 is €6,400 below the statement balance.
• G8 — Closure: no reconciled period ledger links statement and payment.

8. Priority document requests

1. Executed agreement and amendments.
2. Full line-level royalty statements.
3. Distributor reports by ISBN, format, territory, and period.
4. Returns and reserve roll-forward.
5. Audiobook platform statements and fee detail.
6. Advance and recoupment ledger.
7. Supplied FX policy or contract wording.
8. Payment remittance detail.
9. Relevant prior-period adjustments.
10. Final calculation review or approval record.

9. Reviewer questions

1. Which rate and base applies to each format and channel?
2. What explains the 1,360-unit ebook difference?
3. How are reserves added and released?
4. How is the audiobook platform fee treated?
5. What is the supported opening advance balance?
6. Which FX method applies?
7. What explains the €6,400 payment gap?
8. Which items carry into the next period?
9. Which issues require publisher, author-agent, finance, accounting, tax, or legal review?

10. Royalty-statement review handoff

Ready for internal review

R1–R8 support a source register, rights map, unit reconciliation, reserve roll-forward, advance ledger, FX comparison, payment bridge, gaps, requests, and questions.

Hold or qualify

Do not state that 1,360 units were improperly omitted, €9,800 should be released, the platform fee is impermissible, one FX rate controls, €6,400 is owed, or the statement is correct or incorrect.

Status: READY FOR INTERNAL ROYALTY-STATEMENT REVIEW — RATE BASIS, EBOOK POPULATION, RESERVES, AUDIOBOOK DEDUCTIONS, ADVANCE RECOUPMENT, FX, PAYMENT RECONCILIATION, AND AUTHORIZED INTERPRETATION REMAIN OPEN