Sales Based Rental Slabs

[Former Member]

Team

The requirement is as follows :

1. Rental should be calculated basd on the sales.

2. However there will be a minimum as well.

For eg.

Rs 100 per sft + 10% of the revenue of the retail outlet = Total Rent.

Please advise...

Cheers

Kartik

[Former Member]

Hi Karthik,

As per my understanding, your requirement is

a. Rs. 100 per sft

b. 10% of revenue of the outlet

Solution :

1. create condition type z001 with condition attribute as "Minimum sales based rent"

Create condition type z002 with condition attribute as "sales based rent"

2. While creating contract, add the above two condition types in contract

3. Create sales rule and this rule to both the condition types.

Result :

1. Let us assume your area is 100sft, then condition amount for cond type z001 will be 100 x 100 = 10,000

2. Let us assume your outlet sales is 90,000, then your revenue share is 9000. In this case no cash flow will be generated as the amount (9000) is less than 10,000

3. In another case let us assume your outlet sales is 150000, then your revenue share is 15000. system generates cashflow item for Rs.5000 by deducting 10,000.

Check it once.

rgds,

Srini

[Former Member]

Actually when I simulated the calculation using your logic above. System calculated as follows :

Scenerio A

1.Net Sales based rent - Rs 2000 ( 10% of 20,000 sales )

2. Minimum rent - Rs 2500 which I had specificed.

The amount passed on for Receivables was Rs 2500.

Scnerio B

1. Net sales Rs 200000 so rent is Rs 20000

2. minimum rent is Rs 2500

system as u pointed out passed Rs17500 to receivable after adjusting Rs2500.

I want Rs 20000 to pass on to receivables.Basically , whichever is more.

Thanks

Kartik

[Former Member]

Hi Karthik,

I think u r handling your scenario by using one condition type and mentioning minimum sales based rent in sale rule itself.

But here you have to create two condition types, one is for Minimum sales based rent and another one is for Sales based rent.

Add sales rule to both the condition types, sure it will work bcz we have this logic in our project.

As per your example, system post two line items one is for Rs.2500/- and second one is for differential amount.

While calculating sales based rent system considers minimum sales based rent as advance billed and only for differential amount the cash flow item will be generated.

check and let me know if u need any more help.

rgds,

Srini

[Former Member]

Hi Karthik,

If you look at the scenario B you are actually passing 20000 as rent it is just that, as you have already passed an entry of 2500 the system is passing an entry of the remaining amount. Just a different way of looking at the entries.

Also the first scenario itself tells that the higher value is considered as your minimum rent you have taken is more than the rent getting calculated after entering sales.

The functions in a way where it assumes that you have already taken the minimum rent, so there is an adjustment at the end of the month when you enter the actual sales. If the sales based rent is less than minimum rent the system does not do any thing and in case of vice versa it passes an entry of delta amount. This is how standard sales based rent works.

Regards,

Deepak

[Former Member]

Hi Srini / Deepak

As Deepak pointed out... ya I am seeing rs 2500 and Rs 17500 as seperate entries in the simulation and hopefully will see the same once posted. Lets see if I can tweak it to flow to the accounts I want. Yes it has achieved what I want...

Let me post the calculations and see the result....

Thanks

Kartik

[Former Member]

The scenerio actually is :

Rs 100 per sft x 100 sft = Rs 10000 OR

10% of the revenue of the retail outlet

Whichever is more.

Thanks

Kartik