Automated Settlement Sheet Generator

Demystifying the Settlement Sheet Generator

The settlement is the formal, post-show financial reconciliation between the artist's representative (typically the Tour Manager) and the event promoter or venue manager. It is a critical process where ticket sales are audited, expenses are accounted for, and the artist's final payment is calculated and disbursed. The Automated Settlement Sheet Generator is designed to streamline this often-complex process, ensuring accuracy, transparency, and professionalism.

Understanding the Settlement Process

A clear settlement process is vital for maintaining positive business relationships. The generator is built around the core concepts of live show accounting. This includes understanding the difference between a Guarantee (a flat fee) and a Percentage Deal (where the artist earns a percentage of ticket sales after expenses are covered), and the importance of a Ticket Audit to verify sales figures. The tool provides a standardized framework for documenting this process. 

Using the Generator: Inputting Core Show Data

To begin, the user inputs the fundamental details of the performance agreement and sales data:

• Deal Points: Dedicated fields to enter the artist's Guarantee, the specific percentage split of the deal (e.g., 85% of net to the artist), and the calculated break-even point in ticket sales.

• Ticket Sales: A section to record the number of tickets sold at each price tier, as well as the number of complimentary ("comp") tickets issued, which do not generate revenue but count against capacity.

• Ancillary Income: A field to account for any other revenue streams that are part of the settlement, such as walk-up ticket sales not captured in the initial count or revenue from VIP packages.

Reconciling Expenses and Calculating the Payout

Once gross revenue is established, the next step is to account for legitimate promoter expenses that are deducted before the final split.

• Allowable Promoter Expenses: The user inputs the costs that were pre-agreed upon in the performance contract. These typically include venue rent, local staffing (security, box office), marketing and advertising, and production costs if provided by the promoter. All expenses should be supported by receipts or invoices.

• Tax Calculation: Input fields for any required local or state taxes that must be withheld from the gross receipts before the payout calculation.

• The Final Calculation: The generator automatically calculates the Net Gross Revenue after expenses and taxes are deducted. It then applies the agreed-upon percentage split to this net figure to determine the artist's final payout. If the deal is a guarantee versus a percentage, the tool will calculate both and indicate the higher amount, which is owed to the artist.

Generating and Sharing the Final Document

The final output of the tool is a professional, legally sound settlement sheet, typically generated as a PDF.This document clearly itemizes every piece of financial data: gross potential, tickets sold, gross revenue, all promoter expenses, taxes, the final net, the percentage split, and the final payout amount. This sheet includes signature lines for both the artist's representative and the promoter, creating a formal record of the transaction. This standardized document prevents disputes and ensures that every show concludes with clear, mutual financial understanding.