[Mastering Settlement] #1. Funding Edition
This content is part of
<Mastering Settlement>
series. funding.
Be sure to take this with you!
- For funding projects and “Domestic Exclusive” pre-order projects, settlementsare processed in two stages: preliminary settlement and final settlement.
- The percentage of the preliminary settlement varies depending on the total amount paid after the project successfully concludes.
- We’ve compiled some frequently asked questions about settlements.
The settlement process differs between funding and pre-orders
It’s the final stage of your project—and perhaps the most exciting one. Congratulations to all makers who have reached the “settlement” stage!
If you’ve successfully concluded your project, you’re likely already familiar with the differences between wadiz’s “funding” and “pre-order” services.
Since the settlement process varies depending on the service type, it’s a good idea to review this once more.
- funding:
- Projects that introduce products or services that have never been distributed before
- Fundraising projects to raise funds for individual donations or sponsorship activities
- pre-order: Includes the following three types. (Encore and global projects are also included here.)
- Domestic Exclusive
Projects that feature products or services exclusively on wadiz until 7 days after the completion of all Rewards shipments - Special Bundles
Projects offering special bundles or price discounts available exclusively on wadiz during the campaign period - Limited Edition
Projects featuring products or services available in limited quantities that will not be produced again in the future, regardless of the project’s duration
- Domestic Exclusive
For both Funding and pre-order projects classified as “Domestic Exclusive,” settlement is conducted in two stages: preliminary settlement → final settlement.
If your project falls under the “Special Bundle” or “Limited Edition” categories within pre-order, please refer to the article below. In this post, we’ll explore the settlement processes for funding and pre-order (Domestic Exclusive) projects.
>[Mastering Settlements] #2. Pre-orders
*If you’re using the global service, the settlement timing may vary, so please refer to the link below
➡️ How does settlement for global projects differ?
1. Settlement Rates Vary Based on the Amount of Completed Payments
When a project ends and payments are processed, the total amount successfully charged is referred to as the “Total Amount Paid.”
- Depending on whether the total amount paid is 10 million won or more, or less than 10 million won,
- the ratio of the two settlement amounts will differ.
(However,for e-book projects in the “Class” and“Books & E-books” categories submitted before September 1, 2024,a flat preliminary settlement rate of 20% appliesregardless of the total settled amount.)
Ifthe successful payment amount is less than10 million won,
- The advance settlement is 80% of the total payment amount, minus fees, deferred advertising costs, and other expenses,
- while the final settlement is 20% of the total payment amount, minus refunds and other expenses.
Ifthe successful amount is 10 million won or more
- The preliminary settlement is 60% of the total payment amount, minus fees, deferred advertising costs, and other expenses,
- while the final settlement is 40% of the completed payment amount, minus refunds and other expenses.
2. Settlement Process for Funding and “Domestic Exclusive” Pre-orders
1) Advance Settlement Payment Process
Once the project ends, two payment attempts will be made over a two-day period.
- In this context, the amount for which payment was successfully processed and the final settlement was completed is referred to as the “funding amount” or “completed payment amount,”
- and the settlement amount is calculated by deducting service fees and other costs from this amount.
Please check your email frequently as the settlement date approaches.
- We will send you an interim settlement statement via email within 5 business days of the project’s end date.
- We will pay the settlement amount on the designated payment date following the sending of the preliminary settlement statement. You can receive the preliminary settlement amount on Mondays, Wednesdays, and Fridays, excluding weekends and public holidays. However, payment may be suspended if issues such as project cancellation arise.
2) Final Settlement Payment Process
Final settlement takes place after the Rewards have been shipped.
- Once all Rewards have been shipped, the final settlementprocess begins 25 days after the shipping completion date.
- We will send you an email regarding the final settlement within 1 business day after delivery is complete and the refund period has ended.
- You have up to 2 business days to file an objection; if no objection is raised, the final settlement amount will be paid within 5 business days.
Q. Why are payments made in two installments? Can’t I receive the entire amount at once?
- The interim payment
paid before the Maker provides the Rewards. This advance payment is provided to cover the costs the Maker incurs in producing and shipping the Rewards. - The final settlement
serves as a security deposit in case of issues such as Rewards shipping or refunds. The final settlement amount is the total minus any refund amounts.
3. Essential Requirement for Settlement: Entering Shipping Information
Once you’ve shipped the rewards, please enter the shipping information in Maker Studio by following the steps below.Foranyproject, you must enter the shipping information before proceeding to the next step.
- Maker Studio > Shipping & Refunds tab > Bulk Shipping via Excel or Enter Shipping Information
▶Note: I’ve sent the Rewards. How do I process the shipment?
4. Invoice Issuance Date
The final settlement amount is paid after deducting wadiz’s commission from the refund amount or other applicable amounts. Since only the portion of the final settlement amount corresponding to the service fee constitutes wadiz’s revenue, we issue a tax invoice to the maker as proof of this transaction.
The tax invoice is prepared two days after the project ends and issued within seven business days of the project’s end date.
| Timing for Preparing and Issuing Tax Invoices | |
| Basic service fees, intermediary fees, postpaid advertising fees, and PG fees |
|
Quick note! You must not issue tax invoices directly to wadiz. If you’re curious about the reason, please check the following article.
▶Reference: How should I handle tax invoice issuance?
Please report this revenue as “Other Revenue” (excluding amounts for which regular receipts were issued).
- Revenue Recognition (Finalization) Timing:When both the delivery of Rewardsand any refunds have been completed
- Revenue Recognition Basis: Totalcompleted payments – refunded completed payments
- Revenue Documentation:
Please refer to the final settlement statement and
please refer to the Rewards Delivery/Funding Details available via Maker Studio > Shipping & Refund Management > “Download Participant Information.”
▶Note: My funding project was successful—am I required to pay VAT?
5. Frequently Asked Questions
1) Refunds
- Do I need to amend the tax invoice after issuing a refund?
Yes, since the revenue has decreased, you must amend your revenue report or revise the tax invoice. During this process, the intermediary commission will not be refunded in accordance with the agreement, but the payment processing fee will be refunded to the maker.
- Is it possible to refund only a portion of the total amount paid for an individual Reward?
Yes, it is possible. However, for funding projects, supporters cannot request a refund if there are non-refundable reasons that were previously announced. For more details, please refer tothe wadiz Service Refund Policy (link).
2) Fees and Settlement
- Is an intermediary fee charged on contributions?
Since contributions are also funds raised from supporters through the wadiz platform, an intermediary fee is applied.
- How is the amount subject to the intermediary fee calculated?
It is calculated by multiplying the formula (final payment amount – total shipping costs) by the intermediary fee rate.
- What is the base amount for credit card processing fees?
It is calculated by multiplying (Final payment amount – Amount paid with points & coupons) by the credit card processing fee rate (3%, VAT excluded).
In the event of a funding refund, we will refund the payment processing fee for the canceled credit card portion of the refund, excluding the amount paid with points and coupons.
- It seems a different fee rate was applied than the one I was informed of
The fee rates listed under the “Fees & Settlement Management” tab in Maker Studio do not include VAT. When settling accounts, the fee rate including VAT is applied, and you can view the fee rate including VAT on your settlement statement.
3) Updating Maker Information
- I want to change the bank account where I receive my settlement funds
Please send your account information (bank, account holder, account number) and a copy of your bankbook to info@wadiz.kr로.
(You can only change the account to one belonging to the same maker—i.e., the same legal entity or the same representative/sole proprietor. It is not possible to set a third party’s account as the settlement account.)
- Change of Business Representative and Business Name
- For corporate business makers, must submit one copy of the Certificate of Corporate Registration detailing the changes, an official letter, and a copy of the updated bank account statement.
- For sole proprietor makers: a Business Registration Certificate showing the new business name and a copy of the updated bank account statement
to info@wadiz.kr로.
The business name/corporate name and the account holder’s name must match.
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<Mastering Settlements> Series
- [Mastering Settlements] #1. Funding
- [Mastering Settlements] #2. Pre-orders