Glossary
Returns lag
Returns lag: Returns lag is the time delay between a licensed product being sold and that unit being returned to the licensee. Apparel wholesale returns often post 60–120 days after original sale; DTC returns post within days. Royalty calculations must attribute returns to the original-sale period for accurate prior-period adjustments.
// In practice
A jersey sold in March is returned in June. The royalty on that unit (paid to the licensor as part of the March statement) needs to true up — typically through a current-period adjustment that traces back to the March calculation.
// Related terms
Related glossary terms
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