Typically you track and report the reason for paying the royalty and pay it at an agreed upon frequency.  If this is a sales based royalty then a class works well.

You need to get with the person/company you are paying royalty to, and find out how they want to handle […]

Resolution for 'agreed upon frequency issue: 'I need to pay royalties to one of my licensors. Do they send me an invoice and I pay it as a bill? Or is there a different way it should be recorded.' available: Yes.

The agreed upon frequency issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the agreed upon frequency issue yourself by looking for a resolution described in the article. If it is a complex agreed upon frequency issue or you are unable to solve the issue, you may contact us by clicking here or by using other agreed upon frequency support options.

For more information about resolving issues related to agreed upon frequency in Quickbooks/QBO or to get support for the issue 'I need to pay royalties to one of my licensors. Do they send me an invoice and I pay it as a bill? Or is there a different way it should be recorded.', click the link below: