Accounting documents

An accounting document carries the financial source behind a royalty operation. The Accounting Preparer chooses the organization, partner and document type, enters lines, and checks the gross amount before review. Invoice, credit, expense and adjustment documents share that path, so each needs a clear subject and record number that a reviewer can find again.

• Build the amount. Each line has a quantity, unit price, tax and ledger account; the parent carries the resulting gross amount.
• Submit a revision. The preparer freezes the version being reviewed instead of allowing a moving amount under an old decision.
• Record the decision. The Independent Reviewer approves or rejects the submitted source revision and records a reason.

A document in review still awaits a decision. The reviewer compares its lines with the partner, evidence and attached usage statement where applicable. A credit or adjustment needs the same attention as an invoice because a sign or account error changes the book. A rejection should send the preparer to the specific line or basis that needs correction.

Set partner eligibility rules, the active ledger accounts for each organization and the allowed document types for the first operating cycle. Decide how preparers document tax basis and how the team checks a revised amount. Confirm which person may prepare, which may review, and who can authorize corrections after posting. The same person should not approve a revision that they prepared.

Document numbers should remain stable when a reviewed revision changes. Keep the version and decision history so the team can distinguish a rejected revision from the accepted amount. Attachments need a visibility choice that fits who should see them during review and later reconciliation.

Use a royalty invoice for an eligible partner. Add two lines with different accounts and quantities. Verify the line net amounts and the parent’s gross amount including tax. Attach the source evidence and submit. Ask another person to review the frozen revision. Change the quantity after a rejection, submit again, and check that the older decision still points to the older revision. Then approve the corrected document and hand it to the posting team.

Repeat with a credit or adjustment. Confirm that the team’s handling of the document type and account allocation is explicit. An approved document should appear in the posting queue, while a rejected document belongs with the preparer for correction. Neither outcome is a posted journal by itself.

• Documents in Review — Submitted documents with owner, revision and amount for independent decision.
• Approved Awaiting Posting — Accepted documents ready for period and journal checks.
• Rejected Documents — Revisions with a recorded rejection to correct.

See document approval and journal posting.