The rollforward identity
Closing reserve equals opening reserve minus the amount applied to actual return reversals, minus the additional release, plus the current-period holdback. The settlement starts with current earned royalty, removes the new holdback and any reversal not covered by opening reserve, then adds the entered release.
Do not double-count returns
Use this page when return reversals are tracked as a separate reserve movement. If the earned-royalty figure already includes the same negative return lines, entering them again here would count the reduction twice.
What a negative settlement means
A negative arithmetic result indicates that current earnings, reserve coverage, and release were not enough to absorb the entered reversals. An agreement may carry that balance forward rather than require a cash repayment, so the page does not label a negative result as an amount immediately due.
Limits
Reserve percentages, release timing, return treatment, and negative-balance rules vary. Enter only documented values from the agreement and records. This tool is not accounting or legal advice.