Understanding Sales Overage Rules

If you do not have sales overage rules set up in JD Edwards EnterpriseOne Real Estate Management, or if the sales overage rules no longer apply because the lease has expired, you must set up sales overage rules in JD Edwards EnterpriseOne Advanced Real Estate Forecasting.

The AREF Sales Overage Rules program (P15L103) enables you to add, revise, or copy sales overage rules. You set up sales overage rules by building and revision number. When you set up a sales overage rule, you must specify the growth pattern, the calculation method, the breakpoint type, and the percentage of sales. You can assign as many breakpoint amounts and corresponding breakpoint sales percentages as necessary. For example, you might want to encourage sales by lowering the breakpoint sales percentage as sales amounts increase.

The system derives the sales overage amounts based on the calculation method that you assign and based on whether you specify a natural breakpoint or a breakpoint amount:

• If you specify a natural breakpoint, then the breakpoint amount is determined by a percentage of the annual rent.

  The rent amount billed is a percentage of the reported sales.

• If you specify a breakpoint amount, then the system does not calculate sales overage until the amount of sales exceeds the breakpoint amount.

  The system subtracts the breakpoint amount from the sales amount and then multiplies the corresponding breakpoint sales percent by the result to derive the sales overage amount.

The system stores sales overage rules in the AREF Sales Overage Rule Header (F15L103) and AREF Sales Overage Detail (F15L113) tables.