Defining Sales Categories
To define sales categories, use the Sales Categories component (RE_SALE_CAT).
This topic provides an overview of sales categories and lists the pages used to define sales categories.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
Sales Categories |
RE_SALES_CAT |
Define sales categories. |
Use sales categories to identify merchandise classifications for percentage rent calculations. Tenants can negotiate a lower monthly base rent in exchange for a percentage of their sales, broken down by categories. For example, a tenant may lease a building for retail sale for a set base rent, selling items such as clothing, shoes, and accessories. These items are set up as sales categories, enabling the tenant to provide the landlord a monthly report of sales by category and amount of sales. The amount or percentage of the sales paid to the landlord is determined during lease negotiations.
After you define the sales categories and percentage sales terms are negotiated, you can enter the percent rent terms specifying the breakpoints for each category. Use breakpoints to determine the percentage or amount to bill. Landlords can calculate or recalculate the billable amount by using the percent rent sales feature.