Manufacturing
Royalty for Patented Production Process
Recording a fee paid to a 3rd party for every unit produced using their technology.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Manufacturing Overhead (Control) | Expense (+) | 2.00 | - |
| Accrued Royalties Payable | Liability (+) | - | 2.00 |
💡 Accountant's Note
Licensing fees for a production method are part of the 'Indirect Product Cost' and flow through overhead into the unit cost.
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