Setting Auto-Payment Conditions

In some royalty accounting scenarios, whether a balance is payable does not only depend on whether it's positive, but is also in relation to the recoupment status of other contracts. A common example is when a payee, such as a producer, should not receive payment until another party, like the main artist, has reached a recouped position.

To accommodate this, Curve allows users to configure Payment Conditions at the contract level, enabling interdependencies between contract balances.

Adding a Payment Condition on the Contract

A Payment Condition can be added to a Contract. When doing so, the balance of this Contract only becomes payable once also all the Contracts listed in the conditions are positive.

You can specify to either make the Contract payable once the other Contract's

• Balance Is Positive - This condition is only met when the Closing Balance of the respective Contract is positive.
• Balance Is Positive, Ignoring Advances - This condition is met when the Closing Balance on the Contract is positive, ignoring any Advance transactions on this Contract. For example, if a £1,000 advance was added to the Contract, then the condition is essentially met as soon as this balance reaches a Closing Balance above -1,000.

Impact on the Auto-Payments

When one or multiple Payment Conditions are set, then an Auto-Payment will only be created when

• The Contract's balance reaches its Min Payout threshold
• All Payment Conditions are met

If one or both of these conditions are not met, then an Auto-Payment transaction will not be created on the Contract.

Impact on the Statement

If a balance is positive but not payable because there is an Auto-Payment condition which has not been met, then a message will appear on the Statement Of Account to highlight this: "The closing amount on this statement will not be paid this period due to the requirement of other contracts needing to be recouped before payment is made."

"Generate Auto-Payment" needs to be enabled on the Contract for this message to appear on its Statement of Account.