How to enable Microsoft Dynamics AX 2012 R3 Royalty Management

With the release of Dynamics AX 2012 R3, Microsoft added royalty management. Royalties are the fees that one party (the licensee) pays to another party (the licensor) for the use of intellectual property. Dynamics AX 2012 R3 enables an organization to manage royalty agreements, track royalty transactions, and approve them for payments.

In this article, I will highlight the main steps to enable royalty tracking and process a sample transaction.

Prerequisites

In order to use royalty management, make sure that the configuration keys are enabled under System administration > setup > Incense configuration

You must then setup the Broker and Royalty tab under the Account payable parameter form. The purpose of these parameters is to define how a company handles royalty payments by specifying a journal to post royalty accrual and what ledger accounts to use.

You can now create a royalty agreement under Accounts payable > Common > Royalties > Royalty agreements

The header section defines the terms of the agreement: How often royalties are calculated for payment, the vendor the royalty will paid to, whether the royalty is based on amount or quantity, dates and ...