Can IC handle splits for producers/mixers/etc?

Yes! IC can calculate royalties for any individual (Payee) receiving a share for a project.

To add a split for an entity receiving royalties, simply create a contract and add each Payee and their corresponding Split.

In the example contract below, Artist 1 is receiving 50% and Producer 1 is receiving 5% - the remaining 45% is automatically accounted for as the catalog's share:

As you can see - additional participants (i.e. producers, mixers, business managers, lawyers) can be easily added to each contract in the system to meet your contractual needs!

But what if the producer's split is coming out of the artist's share? Easy! Simply reduce the Artist split % rate by the corresponding amount. In the example below, Producer 1 and Mixer 1 are each receiving 5%, reducing the Artist's 50% share by that amount:

That's great! But what if the Producer and Mixer are payable from dollar one (i.e. not incurring expenses that the Artist and label are shouldering)? This can be easily handled in IC as well! If there are certain payees that are not shouldering related project expenses and will be in a payable position as soon as income starts coming in, you'll want to:

1. Set up the contract for the Release or Track as shown above, with the Artist and any other participants and their respective split amounts entered.
2. Do one of the following:
   1. Apply a separate contract directly to the project expense transactions with only the artist and their corresponding split % rate. This will ensure that expenses must first be recouped in full before the artist is in a payable position, but the other participants will not have those expenses accounted to them.
   2. OR - if the Artist is the only one shouldering expenses at a 100% rate and recouping the expenses from their share of the income (i.e. not recouped from project income / shouldered by the label as well), these expenses can be entered as negative transfer type transactions, directly debiting the Artist payee's payable balance at a 100% rate.

Excellent! One more thing - what if there are different producers receiving a share of different songs across a release? Using our flexible system of contract application in IC, Track splits can be represented with unique contracts set at the Track level! We've got some helpful documentation here in our Knowledge Base further detailing the process of creating Track contracts + using our Compilation Contract tool to ensure sure all participants are receiving their share of Release sales!