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Peak Sales Rule - Sales Based Settlement

Former Member
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Hi,

Can anyone please explain me the processing of peak sales rule in sales based settlement?

As per my understanding, peak sales rule works at the time of Final Settlement and At final settlement, all sales rules that were already settled are offset against this settlement.

For Example: Sales based rent for the period 01.04.2014 - 30.04.2014 = 6000 INR.

                     Sales based rent for the period 01.05.2014 - 31.05.2014 = 5000 INR.

                     Sales based rent for the period 01.06.2014 - 30.06.2014 = 7000 INR.

                      Total Rent (01.04.2014 - 30.06.2014) = (6000 + 5000 + 7000) INR = 18000 INR.

                     Maximum rent in peak sales rule is 20000 INR.

Frequency for Final Settlement is Quarterly 01.04.2014  - 30.06.2014. If I run final settlement for the period with settle to date as 30.06.2014 then system should show the sales rent of 2000 INR (20000 - 18000 = 2000). But system is not working as per my expectation.                    

I have already assigned peak sales rule to sales based condition also.

Please clarify my understanding for Peak Sales Rule and how it works.

Thanks In Advance.

Surbhi.

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Answers (1)

Answers (1)

yeong-chul_jeong
Active Participant
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Dear Surbhi

1.Sales Rules

This is the part of the sales-based settlement that specifies how and when the sales-based rent is determined on the basis of reported sales. It also determines how the result of the settlement is paid by the tenant.


2.Peak sales rule

Term category of sales-based rent agreement in a commercial real estate contract specially intended for annual final settlement (= peak settlement). The peak sales rule can have its own agreements for minimum rent and advance payments. At final settlement, all sales rules that were already settled are offset against this settlement.


Regards,

Jeong,Yeong-Chul