|NESFA® Treasury Procedures – Table of Contents||Last updated 03-Apr-2017.|
Buying in a book is triggered by the receipt of the final bill from the printer with a number of books printed on it. Before you buy in a book you must pay the printer and record the royalty to the author. These are the usual last postings against the book asset account used to accumulate the costs of producing a book. Paying the printer is a simple payment transaction just as for any NESFA bill. Recording the royalty is a general ledger transaction that debits the book asset account and credits the royalty account for the author.
Before you can buy in a book, its asset account must exist. You (or a previous treasurer) must have already created the AS-BOOKnnn book asset account to accumulate the costs of production for the book and all the major costs of that book must have been already entered, so that the AS-BOOKnnn account contains the actual costs to produce the book. For a new book, the book asset account should include payment to the artist (though a few of them have been contracted under royalty agreements and so are handled similarly to payment to the author). The majority of the entries to the book asset account should be costs of printing and shipping for both text and cover, binding charges, possibly charges for galleys (printing and shipping to reviewers), charges for shipping to the clubhouse and to our fulfillment provider, payments for art and text like forewords, and royalties.
There must also be a royalty account for the author, RY-author, to accumulate all the author's payments for all their books. This royalty account should exist as it should reflect a debit from the author having been paid their advance. The credit from the knowledge of the number of books printed should leave the amount owed the author as the royalty account balance. We are up to date if the balance of an author's royalty account is zero. A royalty check to an author debits their royalty account.
As an example, for the Yolen 2 book, Once Upon a Time (She Said) the accounts are:
Generally speaking, if there are two or more books by the same author, there would be separate IV-, CG-, SI-, and SE- accounts for each book, but only one RY- account for all books by that one author.
In Peachtree, select Reports > General Ledger, predefined GL 3...(to be continued...SL)
(check that the royalty and asset accounts are debited and credited as described and not vice versa!)
Buying in a new book used to be a two-step process which consisted of creating a bill using the Receive Inventory task and then paying that bill using the Write Checks task. That old procedure can be found here. The old procedure made sense at the time, but at some point a new feature introduced into Peachtree made it possible to use the simpler method described above.