When are royalties calculated?


	When are royalties calculated?
	Last Edited - 03/1/2012 10:19am PST
	Category Path - Shopping Cart Software Components > Administration Area > Products > FAQs & Tutorials

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I have a vendor that earns royalties on their products. I have set up royalty rules in the Product Editor. When exactly will the vendor's royalties be calculated?

Royalties are calculated at the time of purchase. When a customer places an order containing a product that generates royalties, those royalties will be recorded at that time, based on the product's purchase price.

Royalties are based on the product's purchase price. If a product's regular price is altered — due to a coupon, event, etc. — then the product's altered price will be used when the value of the royalty is determined.

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If I change a product's royalty values, will the changes be applied retroactively to the royalties that a vendor has already earned?

No. Since royalties are recorded at the time of purchase, future changes to a product's royalty rules will not retroactively alter any royalties that have been generated in the past.