Distributions are performed from the Technology Record. In order for a distribution to be completed, a distribution schedule must exist for the technology. Distribution templates can be created using the policy and loaded into any distribution schedule in a Technology Record. It is possible to have more than one active distribution schedule for a technology.
Creating Distribution Schedule Templates:
- Click on the Settings tab in the navigation header.
- Scroll down and click on the section called Manage Distribution Schedule Templates.
- Click on New Template.
- Based on the distribution policy, click on Add Range.
- Fill out the details.
Click Save.
Structural Components
The following components are available to structure the waterfall appropriately, and can be arranged in any order required.
Thresholds
First select Add Range if revenue received is distributed differently based on the amount that has already been received. A range will need to be added for each threshold calculation that exists and the values will be defined in each level.
Group Distributions
If the policy or agreement states that a group is entitled to a portion of the revenue received, the first step is to Add Percent and assign a percent.
The next step is to Add Group that is owed a portion of the distribution payment and searching for the name in the search box. If the name cannot be located, double check the spelling. If it is not in the system, a new group record will need to be created in the groups section of Inventions.
Creator/Inventor Distributions
If the policy states that people are entitled to a portion of the revenue received, the first step is to Add Percent for the group of people and assign a percent.
Next, add the person or persons that are owed distribution payments by clicking on Add Person and searching for the name in the search box. If the name cannot be located, make sure the spelling is correct. If they are not in the system, a new person record will need to be created in the people section of Inventions.
Waived Distributions
Waivers are used whenever money is being diverted from the original intended recipient to another person or group. Waivers can be used to divert money when an inventor opts to waive their portion to a group as a donation, an inventor is deceased, and their money is given to an heir or trust, an inventor leaves the University and the lab portion is given to the department, etc. If a creator elects to waive their distribution to another person or group, that person or group would be added to the appropriate grouping in the policy section in place of the individual or group waiving their portion.
Cost Recovery
Deduct unreimbursed expenses linked to the technology and its patents from the revenue prior to distribution. Cost recovery can be inserted into any stage of the waterfall as defined in the policy. The value in the cost recovery field is calculated by subtracting all reimbursements received against a technology and its patents less the expenses related to the technology and its patents.
Admin Fee
Flat amount or percent removed from the distribution prior to distributing revenue to a co-owner
Distribution Schedules
The distribution of revenue requires a schedule that allocates the revenue appropriately to the intended recipients. Distribution schedules are created from the Technology Record under finances. The distribution schedule is unique to the Technology Record and cannot be copied and moved to another Technology Record
Create New Distribution Schedules
- Open the Technology Record that requires a distribution of funds.
- Scroll down to the Distribution Schedule section, and click on New Distribution Schedule. A new window will open where you can build a new schedule.
- The New Distribution Schedule creation page will open. Fill out the following fields as desired:
- Description: Short distribution name seen by users.
- Start Date: The distribution schedule start date. This can be left blank but cannot be a date occurring after the end date. This date is only for user reference and is not used for calculations.
- End Date: The distribution schedule end date. This can be left blank but cannot be a date occurring before the start date. This date is only for user reference and is not used for calculations.
- Link to Agreement: Links the schedule to a specific agreement that is linked to the Technology Record.
- Load Template: If a template exists in the Settings, click Load Template to load.
- Use the structural component buttons along the bottom of the page to add various components based on the distribution policy that dictates how revenue linked to the technology will be processed.
Click Save and then click Submit for Approval. The distribution schedule will be reviewed and approved for processing distributions. The status can be viewed at the top of the page.
To return to the Technology page and view the newly created distribution schedule, click on the reference number at the top-left corner of the page.
From the Technology page, scroll to the Distribution Schedule section to view the status of the schedule, or to view and edit the schedule.
Create New Distributions
- Open the Technology Record that requires a distribution of funds.
- Scroll down to the Distributions section, and click on New Distribution. A new window will open that displays all of the revenue or other funds that are available to be distributed.
- Select one or more items to be included in the distribution, then click Next at the bottom of the page to view how the money is allocated in the waterfall.
The amount fields can be modified to account for a reduction or addition for cost recovery, accommodating rounding errors, etc. Once the distribution is validated, submit for approval line items creation.
Distributions on Hold
If distributions are on hold, you can check the box located at the top of the Technology Record header that says Distributions on Hold.
The hold status is displayed on the distribution's aging report. If a distribution is attempted on a technology where distributions are held, an error message will appear. When distributions are no longer on hold, you can uncheck the box so that distributions can be processed.
