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Royalty and licensing revenue
Royalty and licensing revenue

Question:
How can I show the royalty and licenses revenue in the projected profit and loss table without including it in the gross margin calculation?


Answer:
Use the unit sales forecast option instead of the value (Premier Only), then the royalty and licenses can be shown as a sales line in the sales forecast, so they affect total sales.

In the cost of sales area of the sales forecast, leave direct costs for these lines at zero, so they do not add to cost of sales and therefore don't impact gross margin.