Calculating Percentage Rent

Once your sales data has been uploaded and your conditions have been created, you can create a percentage rent period to calculate your amounts.

Each period displays a report that shows the applicable sales for the period, as well as any amounts that have already been paid, and the final owed amount. From this report, you can create charges for any owed amounts. Each line of the report represents a rule created in your conditions. Note that the report calculates for all currencies configured in the lease.

Percentage rent periods can be created once the lease has been activated, and cannot have overlapping dates. Once a period is created and the report is generated, you cannot change the dates or delete the period.

Note: If you create a lease version, any percentage rent periods/reports created under the previous lease version are deleted in the new version. Previous percentage rent periods are still available to view under the inactive lease. Any percentage rent charges created in the previous lease version are transferred to the new one and can be viewed in Scheduled Payments, as well as under the Cumulative Payment Adjustment column in the percentage rent report.

To create a percentage rent period:

  1. In the application menu, click Main > Leases and open the required lease.
  2. Click Percentage Rent.
  3. Under the Calculated Percentage Rent section, click .
  4. In the Period section, set the date range for the percentage rent period by entering a Start Date and End Date. The application uses sales data that falls within these dates.
  5. Click Save and Generate. The percentage rent report generates and calculates the balance.
  6. The table shows one row per rule and contains the following columns:
    • Date From and Date To: The period start and end dates based on the adjustment frequency set in your percentage rent rules.
    • # Days in period: The number of days between your period start and end dates.
    • Applicable sales: Sales that are defined in your premises that fit within the defined period start and end dates.
    • Cumulative Applicable Sales: The cumulative applicable sales up until the period end date.
    • BEP: The breakeven point which is spread evenly across percentage rent periods.
    • Cumulative BEP: The cumulative breakeven point up to the period end date.
    • Cumulative Overage Sales: The amount of sales that are actually used in calculations.
    • Cumulative % Rent: This amount is determined through the following calculations: (Cumulative Applicable Sales - Cumulative Overage Sales) x Bracket percentage.
    • Cumulative Effective % Rent: The percentage rent amount with minimum and maximum amounts applied.
    • Cumulative Provisional Rent: The cumulative amount of provisional rent that has already been paid.
    • Balance: The final owed amount after all calculations have been made. The balance is determined using the following logic: cumulative effective percentage rent - cumulative provisional rent.
  7. If required, you can regenerate the percentage rent report using one of the following methods:
    • From the percentage rent report window, click . The report regenerates.
    • In the Calculated Percentage Rent section, click > View Details next to the period you would like to regenerate. Click Regenerate.

Once your percentage rent balance is calculated, you can create a charge for the amount.

To create a charge:

  1. In the Calculated Percentage Rent section, click > View Details.
  2. If necessary, regenerate the report.
  3. Click on the Report tab.
  4. Click > Percentage Rent Charge next to the required balance.
  5. Select the Currency (Activation Group) for the charge. The list only shows the configured currencies for the lease.
  6. Enter a Name for the charge.
  7. Select the Expense Category for the charge. Available expense categories are based on the ones selected for the percentage rent rule.
  8. Set the charge Due Date. The date is set to the first day of the percentage rent period by default. Note that the Due Date cannot be past the ROU End Date or the Last Payment Date, whichever is later.
  9. The Balance is set to the calculated balance in the percentage rent report, but can be changed if needed.  
  10. Click Save.
  11. The application will prompt you to regenerate the report to reflect the newly created charge. If you click OK, the balance on the percentage rent report is updated.
  12. The charge can be viewed and posted from the Scheduled Payments page.

See also:  

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