Processing Sales Overage

This chapter provides overviews of sales overage processing, billing calculations and sales overage computation methods, and sales overage processing methods and discusses how to:

• Enter sales overage information.

• Generate the expected sales report.

• Enter expected and unexpected sales.

• Review sales report batches.

• Post sales reports to history.

• Adjust posted sales.

• Generating sales overage billings.

• Review sales history.

Understanding Sales Overage Processing

In many leases with retail tenants, you establish rent that is based upon a portion of reported sales. In return for a lower fixed rent or no fixed rent at all, tenants pay a percentage of their sales to the landlord. This billing process is called percentage sales or sales overage because the sales usually must be over (exceed) a certain level (breakpoint) before rent is billed. You can change the percentage charged as sales increase to provide tenants incentives to increase their sales.

Sales overage is attractive to tenants, especially start-up businesses or tenants moving to a new location, because generally:

• The overhead for operation from a higher fixed rent is reduced.

• A major portion of the landlord's revenue is tied directly to the success of the tenants' business.

  To promote the tenant's success, the landlord invests in maintaining the property's attractiveness and general appeal and leases space to a variety of business types.

The landlord benefits from sales overage because:

• The revenue associated with sales is potentially higher than for a fixed rent amount.

• Establishing rent as a percentage of sales dollars results in an automatic hedge on inflation.

This table describes the process to set up and calculate sales overages:

Understanding Billing Calculations and Sales Overage Computation Methods

Before the system performs the billing calculations for sales overage, it verifies the information in these tables:

• Billings Generation Control (F15011B).

• Sales Overage Master File (F15013B).

• Product Scales Master (F15014B).

• Min/Max Rents And Recoveries Master (F15015B).

• Sales Report Control (F1540B).

• Tenant Sales History (F1541B).

• Tenant Weekly Sales (F15410).

By referring to these tables, the system ensures that a billing generation includes only leases with reported sales that have not already been processed.

The system does not perform calculations for a lease if one or more of these conditions is present:

• The billings for sales overage were already calculated for the respective period.

• No projected or actual sales were reported for the period.

• Sales were reported and entered, but the Tenant Sales History table has not been updated with that information.

• The sales information is estimated or verbal; billings cannot be based on estimated sales.

  The sales information is controlled by the Sales Report Type field in the Sales Report Control table and the Invoice Estimates field in the Sales Overage Master table. If sales estimates exist in the F1542 table, the system includes those leases.

• The YTD (year-to-date) sales do not exceed the breakpoint for the lease.

  In this case, the Billing Period field in the Billings Generation Control Master table is updated to G (generated) for the related control record. Therefore, the system does not consider the lease for that period.

Methods of computation control how the system handles the sales information, breakpoints, and percentages.

To calculate sales overage, you can select from seven methods of computation, as described in this table:

Example: Sample Calculations

The sample calculations for the first five methods are based on the following information for a product sale record. The gross sales-overage rent is calculated for the second period except for the weekly billing, which only accounts for sales for period 1.

This table shows the differences in the calculations that the system uses in the first five methods of computation:

Sample calculations for the first five methods of computation

Note. ^1: A gross overage billing that is based on one month is deannualized to 1/12, a billing based on two months is deannualized to 2/12 or 1/6, a billing based on three months is deannualized to 3/12 or 1/4, and so on.

^2: This method was used to calculate the previous YTD gross overage billing.

^3: The minimum rent is the amount in effect at the time of the calculation.

Calculation for Method 5

An owner or property manager can set up values in the Real Estate Management system constants to organize the billing operations for all the tenants for a fiscal lease year. A specialized billing reconciliation, such as sales overage, uses this lease year as the cutoff date. Therefore, any tenant who moves in or out within the lease year can be charged a prorated share of the sales for the partial year. The calculation includes the tenant's sales for either the ensuing 12 months if the calculation is associated with a move-in or the preceding year if the calculation is associated with a move-out. A daily proration is calculated from the sales and applied to the partial year.

You can also specify a period of sales either greater than or less than 12 months, if necessary. This value is controlled by the Beg Period (Beginning Period), Beg Year (Beginning Year), and Override Year values in the Sales Overage Master table.

For example, suppose that a tenant's lease begins on June 1, 2007, and the fiscal lease year begins on January 1. The calculation for sales overage is based on the owner's fiscal year rather than the tenant's rent year.

This example also assumes:

• Sales from June 1, 2007, to December 31, 2007 = 85,000 USD.

• Sales from January 1, 2008, to May 31, 2008 = 25,000 USD.

• Dollar breakpoint = 50,000 USD.

• Percentage due = 10.

The system performs the following steps in the sequence shown to calculate the sales overage for the partial year:

1. Gather the reported sales for a full year to determine the gross sales (85,000 + 25,000 = 110,000).

2. Subtract the dollar breakpoint from the gross sales (110,000 − 50,000 = 60,000).

3. Multiply the difference from step 2 by the percentage due to determine the gross overage billing (60,000 × .10 = 6,000).

4. Prorate the gross overage billing based on the number of days in the partial year (6,000 × 214 ÷ 365 = 3518).

The billable amount is 3518 USD for the partial year from June 1, 2007, to December 31, 2007.

Calculation Method 6 - Lease Pro Rata

This example shows how the system uses the Lease Pro Rata method to calculate a lease through the first four months of the sales year. Lease 333 has a percentage due of 5 percent, and a total breakpoint of 2,700,000.00 USD, which was set up in the Product Scales Master table (F15014B). This table shows the product code breakdown:

This table shows the sales for January through April, 2007:

When the Sales Overage Generation is run for January 2007, the results are:

• Lease breakpoint is 2,700,000.00 USD.

• Gross sales are 240,000.00 USD (40,000 + 50,000 + 150,000).

• Annualized sales are 2,880,000.00 USD (240,000 × 12).

  This table shows:

  Product Code	Description	Amount One	Amount Two	Percent	Billing Amount	Annualized Amount
  CLTH	Sales (Period, Annualize)	40,000	480,000 (40,000 × 12)
  ELEC	Sales (Period, Annualize)	50,000	600,000 (50,000 × 12)
  SPRT	Sales (Period, Annualize)	150,000	1,800,000 (150000 × 12)
  SPRT	Overage Calculation (Bkpt)	1,200,000	600,000 (1800000 − 1200000)	5
  SPRT	PR percent (Prod/Lease Billable)	30,000 (600,000×5 percent)	30,000	100	750	9,000
  	Total Gross Billing				750

  Note. SPRT is the only product code that went over its breakpoint, so that product code owes the entire 5 percent. The total gross billing is calculated as:
  
  (2,880,000.00 − 2,700,000.00) = (180,000 × 5 percent) = (9,000 ÷ 12) = 750.00.

When the Sales Overage Generation is run for February 2007, the results are:

• Lease breakpoint is 2,700,000.00 USD.

• Gross sales are 525,000.00 USD (240,000 + 60,000 + 65,000 + 160,000).

• Annualized sales are 3,150,000.00 USD (525,000 × 12 ÷ 2).

  This table shows:

  Product Code	Description	Amount One	Amount Two	Percent	Billing Amount	Annualized Amount
  CLTH	Sales (Period, Annualize)	60,000	600,000 (100,000 × 12 ÷ 2)
  ELEC	Sales (Period, Annualize)	65,000	690,000 (115,000 × 12 ÷ 2)
  SPRT	Sales (Period, Annualize)	160,000	1,860,000 (310,000 × 12 ÷ 2)
  SPRT	Overage Calculation (Bkpt)	1,200,000	660,000 (1,860,000 − 1,200,000)	5
  SPRT	PR Percent (Prod/Lease Billable)	33,000 (660,000 × 5 percent)	33,000	100	3,750	22,500
  	Total Gross Billing				3,750
  	Prior Gross Billing				(750)
  	Current Gross Billing				3,000
  	Net Invoice Amount				3,000

  Note. Again, SPRT is the only product code that went over its breakpoint; so that product code owes the entire 5 percent. The total gross billing is calculated as:
  
  3,150,000.00 − 2,700,000.00 = 450,000 × 5 percent = 22,500 ÷ 12 × 2 = 3,750.00

When the Sales Overage Generation is run for March 2007, the results are:

• Lease breakpoint is 2,700,000.00 USD.

• Gross sales are 860,000.00 USD (525,000 + 90,000 + 70,000 + 175,000).

• Annualized sales are 3,440,000.00 USD (860,000 × 12 ÷ 3).

  This table shows:

  Product Code	Description	Amount One	Amount Two	Percent	Billing Amount	Annualized Amount
  CLTH	Sales (Period, Annualize)	90,000	760,000.00 (190,000 × 12 ÷ 3)
  CLTH	Overage Calculation (Bkpt)	600,000	160,000 (760,000 − 600,000)	5.00
  CLTH	PR Percent (Prod/Lease Billable)	8,000 (160,000×5 percent)	45,000 (8000 + 37000)	17.78 (8000/45000)	1,644.65	6,578.60
  ELEC	Sales (Period, Annualize)	70,000	740,000 (185,000 × 12 ÷ 3)
  SPRT	Sales (Period, Annualize)	175,000	1,940,000 (485,000 × 12 ÷ 3)
  SPRT	Overage Calculation (breakpoint)	1,200,000	740,000 (1,940,000 − 1,200,000)	5.00
  SPRT	PR Percent (Prod/Lease Billable)	37,000 (740,000 × 5 percent)	45,000 (37,000 + 8,000)	82.22 (37,000 ÷ 45,000)	7,605.35	30,421.40
  	Total Gross Billing				9,250.00
  	Prior Gross Billing				(3,750.00)
  	Current Gross Billing				5,500.00
  	Net Invoice Amount				5,500.00

  Note. Both CLTH and SPRT are over their respective breakpoints, and both product codes must share a percentage of the total billable. The total gross billing is calculated as:
  
  (3,440,000.00 − 2,700,000.00) = (740,000 × 5 percent) = (37,000 ÷ 12 × 3) = 9,250.00
  
  The billing amount for product code CLTH is: 9,250.00 × 17.78 percent = 1,644.65
  
  The billing amount for product code SPRT is: 9,250.00 × 82.22 percent = 7,605.35

When the Sales Overage Generation is run for April 2007, the results are:

• Lease breakpoint is 2,700,000.00 USD.

• Gross sales are 1,260,000.00 USD (860,000 + 95,000 + 125,000 + 180,000).

• Annualized sales are 3,780,000.00 USD (1,260,000 × 12 ÷ 4).

  Product Code	Description	Amount One	Amount Two	Percent	Billing Amount	Annualized Amount
  CLTH	Sales (Period, Annualize)	95,000	855,000 (285,000 × 12 ÷ 4)
  CLTH	Overage Calculation (Bkpt)	600,000	255,000 (855,000 − 600,000)	5
  CLTH	PR Percent (Prod/Lease Billable)	12,750 (255,000×5 percent)	54,000	100	4,250 (12750 ÷ 12 × 4)	12,750
  ELEC	Sales (Period, Annualize)	125,000	930,000 (310,000 × 12 ÷ 4)
  ELEC	Overage Calculation (Bkpt)	900,000	30,000 (930,000 − 900,000)	5
  ELEC	PR percent (Prod/Lease Billable)	1,500 (30,000 × 5 percent)	54,000	100	500 (1500 ÷ 12 × 4)	1,500
  SPRT	Sales (Period, Annualize)	180,000	1,995,000 (665000 × 12 ÷ 4)
  SPRT	Overage Calculation (Bkpt)	1,200,000	795,000 (1,995,000 − 1,,00,000)	5
  SPRT	PR Percent (Prod/Lease Billable)	39,750 (795,000 × 5 percent)	54,000	100	13,250 (39,750 ÷ 12 × 4)	39,750
  	Total Gross Billing				18,000
  	Prior Gross Billing				(9,250)
  	Current Gross Billing				8,750
  	Net Invoice Amount				8,750

Now that all of the product codes are over their respective breakpoints, each owes the entire 5 percent. The total gross billing is calculated as follows:

(3,780,000.00 − 2,700,000.00) = (1,080,000 × 5 percent) = (54,000 ÷ 12 × 4) = 18,000.00

Understanding Sales Overage Processing Methods

When you process sales overage, you can create two records for the same lease:

• One record with sales information (normal processing).

• One record with year-end override information.

The value in the Year End Override Code field in the Sales Overage Master and Min/Max Rents and Recoveries Master tables determines whether the system performs year-end override processing. Normal processing occurs when the Year End Override Code field is blank. In this case, the sales information that is used to calculate the overage is determined by the gross overage billing amounts for each product scale record.

Year-end override processing occurs when the Year End Override Code field contains a user-defined, one-character code (for example, Y). This value lets you depart from normal processing to:

• Recalculate the overage rent if sales have been reviewed and adjusted at the end of the year.

• Rebill for previous periods.

• Reconcile with previous periods.

• Prorate the sales if a move-in or move-out results in a partial occupancy for a lease year.

Sales Overage Accruals

For leases that are based on sales overages, you can create accrual entries (F0911 account ledger records only). You create accrual entries based on the Accrual Method field on the Sales Information Revisions form in the sales overage information for the lease. You also set the Generate Accruals processing option on the Process tab in the Sales Overage Generation program (R15120).

These methods exist for generating sales overage accruals:

When the system creates accrual entries, it:

• Writes the records in the Lease Billings Master table (F1511B).

• Updates the billing control information.

• Populates the transaction type with an A for accruals in the Lease Billings Master table.

• Uses the bill code in the Product Scales Master table (F15014B).

  If this field is blank, the system uses the bill code in the Sales Overage Master File table (F15013B).

Be aware that the system does not write records to the Lease Billings History table (F1511HB). Consequently, no previous gross billings exist.

When the system creates billings, it:

• Writes records to the Lease Billings Master table (F1511B).

• Updates the billing control information.

• Writes records to the Lease Billings History table (F1511HB).

  Consequently, previous gross billings are created.

• Sets the transaction type to blank in the F1511B table.

• Uses the bill code in the Sales Overage Master File table.

You can create accrual entries that are based on actual tenant sales from the F1541B table or projected sales from the F1542 table.

Entering Sales Overage Information

This section provides an overview of sales overage information and discusses how to:

• Set processing options for Sales Overage Information (P15013).

• Enter sales overage information.

• Enter minimum and maximum rent and recovery information.

Understanding Sales Overage Information

You can set up and work with the information that the system uses to calculate sales overage for a lease. When you enter sales overage information, you can also enter minimum rent, maximum rent, and recovery information for the lease.

The system stores sales overage information in these tables:

• Sales Overage Master (F15013B).

• Product Scales Master (F15014B).

• Min/Max Rents And Recoveries Master (F15015B).

Note. When assigning billing frequencies for the Report Frequency Code and the Billing Frequency Code, make sure to assign a code that has the calendar fiscal pattern R attached. Sales Overage is determined by calendar year, and sales must be entered by calendar year. When the Sales Overage Generation is run, the GL date used for sales overage billings will define the period for which the billings are posted.

Minimum Rent, Maximum Rent, and Recovery Adjustments

Sales overage adjustments can include minimum rent, maximum rent, and recoveries. Minimum rent, or fixed rent, is the amount that is deducted from the gross overage billing for a billing period. If the gross overage is less than this amount, the billing for the period does not include sales overage. Typically, a minimum rent is involved with a lease that is set up both for regular rent as a recurring billing and for sales overage. In this case, the bill code line for recurring billing has the same amount and bill code as the minimum rent for sales overage.

Maximum rent is the upper limit of the gross overage billing for a billing period. If the gross overage is greater than this amount, the system uses the maximum amount in the calculation.

Recovery is normally an amount that a tenant has paid or has been billed that can be deducted from the gross overage billing for the billing period. For example, suppose a tenant paid a contractor to improve the appearance of a storefront. Depending on the terms of the lease, the tenant can recover this expense over a period of time against the sales overage.

Assigning Sales Overage Information to a New Version of the Lease

If you need to assign sales overage information to a new version of the lease, select the lease and select Versions from the Row menu.

The system displays a version confirmation message. To suspend the selected sales overage information line, click OK.

The system copies all of the relevant information to a new line and enters the date one day previous to the date of the new effective date for the version in the Suspend Date field for the original bill code lines.

The system also copies any minimum and maximum rent and recovery information.

Forms Used to Enter Sales Overage Information

Setting Processing Options for Sales Overage Information (P15013)

Processing options enable you to generate records for a specific period or for all of the periods in a year. If you are entering weekly sales reports, ensure that you enter the weekly sales date in the appropriate processing option.

Process

Use these processing options to specify how to display tax fields on the report and what information the system uses to run the report.

Defaults

Use these processing options to specify the default information that the system uses for this report.

Currency

Use these processing options to specify currency information for the report.

Entering Sales Overage Information

Access the Sales Information Revisions form.

Year End Override Code	Displays a value indicating that the specifications for a user-defined sales overage period might differ from the normal lease specifications. You use this value to differentiate between normal sales overage processing and year-end override processing, which includes partial lease-year occupancies. You can specify a time period for which to process the override, or you can leave the date range fields blank to print the Year-End Month report, which is an annual report. This report might duplicate or override the sales overage specifications for a lease, including the minimum and maximum rents and recoveries.
Tenant Sales Category	Enter the additional ULI (Urban Land Institute) code for Tenant Sales categorization. The ULI code is an industry-standard code used to identify the nature of a business or enterprise. The ULI is a real estate trade organization that publishes sales, expenses, and other statistical information by types of buildings, developments, and tenants.
Report Frequency Code	Indicate the frequency that a tenant's sales reports will be due. These codes must be set up in user-defined codes (UDCs) (15/BC). You can establish codes for all possible combinations of reporting frequencies, including 12- and 13-period accounting years.
Report Due Days	Enter the number of days after the end of a reporting period in which the tenant's sales reports must be submitted. This field is informational and is also used to generate the Delinquent Sales Report Notice and Delinquent Sales Report Letter FASTR reports.
Annual Report Due Days	Enter the number of days after the end of the tenant's fiscal year in which the tenant's annual (year total) sales report must be submitted. The field is informational.
Review Sales from Month/Year	Enter the first period or month to be included in the processing of sales for a series of periods or months.
Report Year End (Mo) (report year end month)	Enter the period in which the tenant's fiscal year ends. For example, if the tenant's fiscal year ends on December 31st, enter 12 in this field.
Year End Override Year	Enter the applicable year and century.
Audit Date	Enter the audit date. Its intended purpose is to record a date for the finalization of sales overage recording and calculation for a tenant for a given year.
Computation Method	Enter the number that specifies the method that the system uses to calculate percentage rent by comparing breakpoints and percentages to tenant sales. Values are: 0: Weekly Sales. The system uses the sales amount for the week to directly calculate the gross overage billing. The system calculates sales for each period, does not annualize the amounts, and expresses the breakpoints as period amounts. 1:: Each Period. The system annualizes and processes current period sales. It then deannualizes the resulting amount to determine the current gross amount of the overage rent. 2: Cumulative. The system directly processes YTD sales to determine the YTD gross amount of the overage rent. It then deducts YTD billings to determine the current gross amount of the overage rent. 3: Cumulative Pro Rata. This method is similar to method 2, except that the system annualizes and processes YTD sales and the result is deannualized. 4: Modified Cumulative. This method is similar to method 2, except that when the system reaches a higher breakpoint it applies the rate associated with this breakpoint to all sales that exceed the first breakpoint. 5: Partial Year Pro Rata. The system calculates billings on the nearest 12 months of sales and then prorates them daily for the tenant's partial lease year occupancy. 6: Lease Pro Rata. This method is similar to method 3, except that the system uses the lease breakpoint to determine a maximum amount that is billable for the lease. The system then prorates the billable amount by product code and calculates the product code sales as a percentage of total sales.
Lease Breakpoint	Specify the amount that tenant sales must exceed before the system applies the sales breakpoint percentage. Depending on the computation method, the system compares the period, cumulative period, cumulative period annualized, or annual sales amounts to the breakpoint. If you set up multiple breakpoint amounts, the system applies the sales breakpoint percentage to the difference between the breakpoint amounts.
Invoice Estimates	Enter the code that specifies whether the system generates sales overage billing for non-actual sales. A non-actual sale is one for which the sales report type is not blank and a followup is required. Examples of non-actual sales include estimated sales and verbal sales (reported only). However, non-actual sales do not include those that the Projected Sales Generation program (R1542) forecasts. Values are: N: Do not calculate sales overage billing for non-actual sales. Y: Calculate sales overage billing for non-actual sales.
Manual Review Reqd (manual review required)	Enter the code that specifies whether a billing record must be reviewed before it can be approved for posting. Codes are: Blank: A review is not required. Y: A review is required. The batch retains a status of Error until the Manual Rev Reqd field for the billing record is changed from Y to blank.
Property Code 1	Enter a code from the 20 user-defined reporting codes that exist within the Property Management system. These three-character codes can be used to further define and categorize records, such as Property/Buildings, Floors, Units, Leases, and Billing Records.
Percent Due	Enter the percentage that the system will use to calculate Sales Overage Rent for the associated breakpoint. For example, five and a half percent would be entered as 5.5. Sales Overage, or Percentage Rent, is calculated on a Product Code line basis across a scale with various breakpoints. Each breakpoint must have a percentage associated with it. This percentage represents the rate at which a tenant will be billed Sales Overage Rent for sales that are greater than one breakpoint and less than the next one.
P R (prorate overage)	Specify whether to prorate overage. You can use this field to prorate Sales Overage Billing based on percentages specified at detail (Product Scale) levels with a total lease-level breakpoint. When this field is used, the system bills overage for all of the lease's sales in excess of the lease-level breakpoint using this logic: For each detail (Product Code) record, the system determines the amount of sales applicable to that record by dividing specific product sales by total sales for the lease, and then applying that proportion to total sales in excess of the lease-level breakpoint. The system then bills overage rent for the specified percentage of the sales calculated. Values are: N: Do not prorate Y: Prorate
P C (process code)	Define the purpose of each Product Scale record. Usually the Product Scale (Building/Unit/DBA/Product Code) identifies both the level at which sales must be reported and the level at which billing specifications should be applied. However, billing requirements may be specified at a different level than sales reporting requirements. This field enables you to distinguish between the two levels. Values are: Blank: Use Product Scale for Sales Report Control and Billing Calculations. B: Use Product Scale only for Billing Calculations (Product Scale fields are used to identify sales subject to said breakpoint and percent). R: Use Product Scale only for Sales Report Control (product scale fields are used to identify how sales are expected to be reported).
Accrual Method	Enter the UDC (15/AU) that specifies the method that the system uses to generate accruals. Values are: Blank: Do not generate accruals. 1: Generate this record as a reversing accrual each month, except for the report year-end month. 2: Always generate this record as a reversing accrual, regardless of the report year-end month. For the report year-end month, the accrual entry is not reversed. 3: Generate this record as a reversing accrual each month, except for the report year-end month. If actual or estimated sales exceed the breakpoint, generate an invoice or voucher regardless of the reporting month.
Sales Lease	Enter a lease number that the system will use to retrieve sales amounts. The same sales reporting lease number should be entered on each line of a group of Product Scales records. A group of Product Scales records has the same values in DBA, Product Code, Building, and Unit. This field is intended to be used in situations involving subleases, where billings for more than one lease are based on the same sales amounts.
V S (version suspend)	Enter the code that indicates whether a billing record is suspended by the versioning process. Values are: Blank: Active. The billing record is not suspended. 1: Suspended. The billing record is suspended by the versioning process. A new billing record might exist for the next (subsequent) version of the lease.

Entering Minimum and Maximum Rent and Recovery Information

Access the Min/Max Rent & Recoveries Revisions form.

S.O. Type (sales overage type code)	Enter the code that relates the pay item to sales overage rent. Values are: RC: Recovery that is generally exempt from the calculation of sales overage. A lease may have more than one recovery active for a given billing period. MN: Minimum rent that is fixed and generally credited against sales overage in a given billing period. MX: Maximum rent that specifies the ceiling for a tenant's sales overage in a given billing period.
Amount	Enter the value that specifies the total amount of the invoice or voucher pay item. The gross amount might include the tax amount, depending on the tax explanation code. The system does not decrease the gross amount when payments are applied. When you void a transaction, the system clears the gross amount field.
Limit Period	Enter a value that specifies the period associated with the Maximum Rent amount for Sales Overage Rent. Values are: A: The Maximum Rent amount is an annual maximum. P: The Maximum Rent amount is a maximum for the current billing period. L: The Maximum Rent amount is a maximum for the entire Lease term.
Rfrc B/C (reference bill code)	Enter the reference bill code. For minimum rent, you can enter the Bill Code associated with amounts already invoiced to a Tenant in this field. The system will compare these amounts to the Sales Overage calculation amounts to determine whether the Minimum Rent amount has been reached. For a example, a Tenant is billed estimated Minimum Rent of 500 per month through the Recurring Billing system (P1502), and a Minimum Rent of 500 has been set up on the Min/Max Rents & Recoveries Revisions form. The Bill Code for the estimated Minimum Rent should be entered in the Reference Bill Code field. The system will then calculate Sales Overage Rent, compare the amount with what has already been billed, and calculate the net charge or credit. For recoveries, enter the Bill Code associated with the general ledger account that contains the amount to be recovered. The system will automatically calculate the gross amount of recovery based on this code and the percentage entered in the Recovery Rate field.
Recovery Rate Percent	Enter the rate at which Recoveries are deducted from Gross Overage Rent. After the system calculates the Recovery amount, identified through the use of a Reference Bill Code applicable to the given period, it modifies the Recovery amount by this rate. The modified Recovery amount is then deducted, subject to other limits and rates, from Gross Overage Rent.
Recovery Limit Percent	Enter the maximum increase in percentage of dollars that is allowed for an annual escalation. For example, the value 6.000 represents a 6 percent maximum in the increase between a recurring charge being escalated and the new recurring charge.
C F (period carry forward)	Allows carry forward. You can use this field to cause Maximum Rent adjustments made to Gross Overage Rent or Recovery adjustments based on Recovery Limits to be carried forward to the following billing period. For a Recovery, if Carry Forward is in effect, the Recovery amount calculated in excess of the Gross Overage Billing will be added to the following period's Recoveries. For a Maximum Rent, if Carry Forward is in effect, the Maximum Rent amount (Gross Billing - Maximum Rent) will be added to the following period's Gross Overage Billing. Carry Forwards can be financially advantageous to the Property Manager/Owner when processing a Maximum Rent adjustment and disadvantageous when processing a Recovery. Y: Allow. N: Do not allow.
Priority Sequence	Enter the value that resequences the order in which the system calculates minimum rent, maximum rent, and recovery adjustments. The system processes the adjustments in the order in which the Minimum/Maximum Rents and Recoveries program (P15015) displays them. To change this order, enter an alphanumeric sequence value or a series of values in the Priority Sequence field.
Limit Amount	Define the limit amount (or maximum amount) of a Recovery. The Recovery Limit amount is the maximum amount that will be allowed over the term of the lease. After the system calculates the Recovery amount deductible from Gross Overage Rent for the given billing period, it adjusts the Recovery amount so as to not exceed the Recovery Limit for the life of the Lease.

Generating the Expected Sales Report

Before you can enter expected sales, you must generate the expected sales report. When you run the Expected Sales Report Generation program (R15780), you prepare the system to accept sales information that you expect to receive for a specific lease by first creating records without monetary amounts (records with empty buckets).

This section discusses how to:

• Run the Expected Sales Report Generation program (R15780).

• Set processing options for Expected Sales Report Generation (R15780).

Running the Expected Sales Report Generation Program (R15780)

Select Sales Report Processing (G15221), Expected Sales Report Generation.

Setting Processing Options for Expected Sales Report Generation (R15780)

Set these processing options before you run Expected Sales Report Generation program (R15780).

Select

Use these processing options to specify dates for sales report control records.

Print

Use this processing option to specify the information to print on the report.

Entering Expected and Unexpected Sales

After you run the Expected Sales Report Generation program (R15780), you can enter the expected and unexpected sales figures from the tenants. The menu provides a different version of the same program (P1540) that you use to enter expected and unexpected sales.

This section discusses how to:

• Set processing options for Sales Report Entry (P1540).

• Enter expected sales

• Enter unexpected sales

Forms Used to Enter Expected and Unexpected Sales

Setting Processing Options for Sales Report Entry (P1540)

Set these processing options before you run the Sales Report Entry program (P1540).

Process

These processing options enable you to specify whether to allow the entry of unexpected and adjusted sales amounts.

Defaults

This processing option enables you to specify whether to activate batch control when entering sales amounts.

Entering Expected Sales

Access the Multiple Expected Sales Report Revisions form or the Expected Sales Entry form.

Report Per/Yr (sales report period/year - calendar year)	Enter the report period. This field is used to record the Tenant's Sales reporting period. These periods will usually correspond to calendar months, quarters, or to periods of some other established year.
Weekly Sales Date	Enter the last calendar date that a tenant's sales report represents. If you are entering weekly sales, enter the weekly sales date. The system will calculate the report month and report year for you.
Report Type	Enter the types of Sales Reports, which are user-defined. Some examples of Sales Report Types are Actual Sales, Estimated Sales, and Verbal Sales (reported verbally). Actual Sales are Sales Reports that require no followup and are eligible for purging from the Sales Report Control table. The default value of blank in the Sales Report Type field is Actual Sales. Any non-blank value in the Sales Report Type field indicates that some followup is required. The system retains non-blank Sales Report Type records in the control file for reporting and followup purposes. You can use the Sales Report Type codes to differentiate between Sales Report conditions that require unique types of followup.
Sales Rpt Status (sales report status)	Enter the sales report status code. These codes are assigned by the system; you cannot add, change, or delete them. Values are: Blank: Most recent, unposted Sales Report for a given Product Scale and billing period. P: Posted Sales Report that has not been replaced by any Adjusting Sales Reports for a given Product Scale and billing period. X: Posted Sales Report that has been replaced by an Adjusting Sales Report for a given Product Scale and billing period.
Expected Sales	Enter the expected sales code. This code is used by the Property Management Sales Overage system to determine whether a sales report record is invited or expected. This code is intended for internal use and is not accessible to the user. The sales-invited code values are: X: Invited. This record was generated before sales report entry. Blank: Uninvited. This record is an unexpected sales report.
All Sales Reports	Enter the All Sales Report code. This code is used by the Property Management Sales Overage system to determine whether a sales report record is invited or expected. This code is intended for internal use and is not accessible to the user. The sales-invited code values are: X: Invited. This record was generated before sales report entry. Blank: Uninvited. This record is an unexpected sales report.
Posted, Unposted, All	Enter the Posted Sales Report code. Sales Report Status Codes are assigned by the system; you cannot add, change, or delete them. Values are: Blank: Most recent, unposted Sales Report for a given Product Scale and billing period. P: Posted Sales Report that has not been replaced by any Adjusting Sales Reports for a given Product Scale and billing period. X: Posted Sales Report that has been replaced by an Adjusting Sales Report for a given Product Scale and billing period.
Sales Amount	Enter the total sales amount for the associated product and sales period.
Batch Number	Enter the number that identifies a group of transactions that the system processes and balances as a unit. When you enter a batch, you can either assign a batch number or let the system assign it using the Next Numbers program.

Entering Unexpected Sales

To save time when you are entering sales for the same lease, product code, or report month and year, consider completing those fields in the header so that the system enters the default information into the detail area when you enter sales amounts.

Access the Unexpected Sales Revisions form.

Reviewing Sales Report Batches

This section provides an overview of reviewing sales report batches and discusses how to:

• Set processing options for Sales Report Batch Review (P15206).

• Review sales report batches.

Understanding Sales Report Batch Review

Before you generate sales overage billings, you can review batches of sales information for posting using the Sales Report Batch Review program (P15206). For example, you might run this program after posting and adjusting sales. The sales information is stored in the Batch Control Records (F0011) and the sales report control tables.

Real Estate Management provides these levels of detail for reviewing and approving batches of sales report batches:

• General batch review.

• General review of the information in a batch.

• Detailed review of a batch.

You use Sales Report Batch Review to review batches of transactions at the highest (most general) level of detail. You can display a list of batches based on information such as user ID, batch number, and batch date.

When you review batches of transactions, you can review sales report batch details for posted batches (for example, to check batch totals) and batches in error.

Note. If you use batch control, the system shows the differences between what you expect to enter and what you actually enter for both the input total (Difference Amount) and the number of documents (Difference Documents). If you do not use batch control, the system subtracts the actual entries from zero, which results in negative numbers in these fields.

Form Used to Review Sales Report Batches

Setting Processing Options for Sales Report Batch Review (P15206)

Set these processing options before you run the Sales Report Batch Review program.

Process

These processing options enable you to specify the default information that appears when you access the program.

Versions

This processing option enables you to specify the version of the program to run when you post by batch.

Reviewing Sales Report Batches

Access the Work With Batches form.

Posting Sales Reports to History

This section discusses how to:

• Post sales reports.

• Set processing options for Post Sales Reports to History (R15820).

Posting Sales Reports

You use the Post Sales Reports to History program (R15820) to post both expected and unexpected sales. You can also specify whether the system generates sales analysis information when you post sales batches.

See Setting Up Levels of Detail for Sales Analysis.

When you post sales batches, the system updates the Tenant Sales History File table (F1541B) and, for weekly sales, the Tenant Weekly Sales table (F15410).

Select Sales Report Processing (G15221), Post Sales Reports to History.

Setting Processing Options for Post Sales Reports to History (R15820)

Set this processing option before you run the report.

Print

This processing option enables you to specify whether the program runs in proof or final mode.

Adjusting Posted Sales

This section provides an overview of adjusted sales and discusses how to adjust posted sales.

Understanding Adjusted Sales

After you post sales, you might need to change the sales figures (for example, when a tenant's actual sales have changed since the posting). You use the Adjust Sales Reports program (P1540) to change the posted sales amounts.

Note. If you try to select posted sales records from the Work With Sales Entry form that the system displays when you select the Expected Sales Entry and Unexpected Sales Entry programs, the system returns an error. You must use the Adjust Sales Report program. You can, however, select and revise unposted sales report records using the Expected Sales Entry, Unexpected Sales Entry, or Adjust Sales Reports programs.

When you revise posted sales amounts, the system:

• Reopens the batch header record (F0011).

• Changes the Rpt Sts (report status) field from P to X, which indicates that the value has been changed.

• Adds a detail record with the new sales amount.

  The report status for the new sales amount is blank until you post the batch.

The system retains the original sales amount to provide an audit trail of the changes. After you post the batch, the system updates the report status on both the detail record displayed on the Adjusted Sales Revisions form, as well as the report status on the Work With Sales Entry form.

Forms Used to Adjust Posted Sales

Adjusting Posted Sales

Access the Adjusted Sales Revisions form.

Generating Sales Overage Billings

This section provides an overview of sales overage generation and discusses how to:

• Run the Sales Overage Generation program.

• Set processing options for Sales Overage Generation (R15120).

Understanding Sales Overage Generation

When you run Sales Overage Generation (R15120), the system:

• Creates a batch header record in the Batch Control Records table (F0011).

• Assigns the batch a batch type of 1.

• Assigns the batch a batch status (error, pending, or approved).

• Runs a version of the Billing Edit/Register program (R15300), which generates the records in the Lease Billings Master table for generation type 3.

You use processing options to specify:

• The records that the system processes.

• Whether the system creates billing records for vouchers or invoices.

• The dates to assign to the billing records.

  Note. The billing period that you specify in the data selection must be the same as the billing period that you specify in the first processing option on the Process tab.

Related Tasks for Processing Sales Overage Billings

This table lists the related tasks to perform after you generate the sales overage billing records. You must run the programs that are designated as Required to complete the sales overage billing generation process:

Running the Sales Overage Generation Program (R15120)

Select Sales Overage (G1522), Sales Overage Generation.

Setting Processing Options for Sales Overage Generation (R15120)

Set these processing options before you run the report.

Process

These processing options enable you to specify the parameters to use to process the records.

Options

These processing options enable you to specify the parameters to use to process the selected records.

Print

This processing option enables you to specify whether to generate a printed report.

Versions

This processing option enables you to specify the version of the program to run.

Reviewing Sales History

Sales History Inquiry is an online, date-sensitive program that displays actual sales from the F1541B table and projected sales from the F1542 table. The program displays the start date and the end date for the first 12-month cycle, as well as the start date and end date of the subsequent 12-month cycle. This information appears:

• Total sales for the first 12-month cycle.

• Total sales for the second 12-month cycle.

• Total sales for the 24-month cycle.

• Sales per square foot for the first 12-month cycle.

• Sales per square foot for the second 12-month cycle.

• Sales per square foot for the 24-month cycle.

The system uses these tables in the sales inquiry:

• Lease Master Header (F1501B).

• Lease Master Detail (F15017).

• Tenant Sales History (F1541B).

• Projected Sales (F1542).

• Sales History Work File (F1541BW).

• Real Estate Management Constants (F1510B).

• Unit Master (F1507).

• Area Master (F1514).

Total sales are calculated using these formulas for the sales per square foot amounts for the first and second 12-month cycles:

Total sales are calculated using these formulas for the sales per square foot amounts for the overall 24-month period:

Note. Because total sales and sales per square foot can be weighted differently, they cannot simply be added for the first and second 12-month cycles.

Forms Used to Review Sales History

Setting Processing Options for Sales History Inquiry (P1541B)

Set these processing options to specify the default processing for the program.

Process

These processing options enable you to specify the parameters to use to retrieve sales history data.

Reviewing Actual and Estimated Sales

The system displays sales or sales per square feet amounts for the 24-month cycle in the detail area. Columns for periods that do not fall in the date range that you specified are either not displayed or are unavailable for input. For sales that exist in the F1541B table or the F1542 table, if only part of the year falls within the 24-month rolling date range, the months that are outside of the range are unavailable for input.

Access the Sales History Inquiry form.

Property	Enter the number that identifies the associated property, building, or project. This number is a business unit. The business unit for a property can be different from the business unit for an associated building.
DBA (doing business as)	Enter the address book number that identifies the name under which a tenant operates, if the tenant name is different from the tenant name on the lease. You can use the DBA number to separate or combine sales information for reports. The system validates the number that you enter against the Address Book Master table (F0101).
Product Code	Enter the product code. Product codes are four-character UDCs used to categorize tenants' sales. The codes are used for sales reporting in the Sales Overage module of the Property Management system. You can set up allowed code values and short descriptions in UDCs (15/PC). Example product codes are: FOOD: Food GIFT: Gift Merchandise TOYS: Toys OFCF: Office Furniture BOOK: Books
Store Number	Enter the alphanumeric code that identifies a particular store number.
Base Currency	Enter the code that identifies the currency of a transaction.
Property Code 11–15, 21–25	Enter the property codes. These user-defined reporting codes exist within the Property Management system. These codes, which are three characters in length, can be used to further define and categorize records such as property or buildings, floors, units, leases, and billing records.
From Date	Enter the date from which to display a rolling 24 months of sales.
Actual Sales	Select this option to display actual sales.
Estimated Sales	Select this option to display estimated sales.
Both	Select this option to display both actual and estimated sales.
Sales Per Square Foot	Specify whether the system displays monthly sales or monthly sales per square foot.
January through December	Display sales report history information, which is retained for 13 reporting periods per year. Sales amounts are used to generate Sales Analysis reporting and to calculate Sales Overage billing.

Reviewing Sales By Unit Detail

Note. The search fields on the Sales By Unit Detail form are completed automatically from the header fields that you completed on Sales History Inquiry. Sales or sales per square foot amounts for the units appear for the months of the year that you specified. Since sales per square foot amounts are summarized on the Sales History Inquiry form, the Sales By Unit Detail form displays the units which make up the total Different units might have contributed to sales for different months.

Access the Sales By Unit Detail form.