Calculation Methods 0–4 Example
The sample calculations for calculation methods 0–4 are based on the following information for a product sale record. The system calculates the gross sales-overage rent for the second period except for the weekly billing, which accounts for sales for period 1 only.
The following tables display an example of the calculations that the system uses for calculation methods 0-4:
Sales Information |
Method 0 |
Method 1 |
Method 2 |
Method 3 |
Method 4 |
|---|---|---|---|---|---|
Period 1 |
125,000 |
125,000 |
125,000 |
125,000 |
|
Period 2 |
100,000 |
100,000 |
100,000 |
100,000 |
|
YTD Sales |
225,000 |
225,000 |
225,000 |
||
Annualized |
x 12 |
x 6 |
|||
Calculated sales |
125,000 |
1,200,000 |
1,350,000 |
225,000 |
Breakpoints |
Method 0 |
Method 1 |
Method 2 |
Method 3 |
Method 4 |
|---|---|---|---|---|---|
First breakpoint |
50,000 |
50,000 |
50,000 |
50,000 |
50,000 |
Zero |
0 |
0 |
0 |
0 |
0 |
Percent due |
50,000 |
50,000 |
50,000 |
50,000 |
50,000 |
(implied) |
x 0 |
x 0 |
x 0 |
x 0 |
x 0 |
First amount due |
0 |
0 |
0 |
0 |
0 |
Second breakpoint |
75,000 |
75,000 |
75,000 |
75,000 |
75,000 |
First breakpoint |
-50,000 |
-50,000 |
-50,000 |
-50,000 |
-50,000 |
Sum |
25,000 |
25,000 |
25,000 |
25,000 |
25,000 |
Percent due |
x .04 |
x .04 |
x .04 |
x .04 |
x .03 |
Second amount due |
1,000 |
1,000 |
1,000 |
1,000 |
750 |
Calculated sales |
125,000 |
1,200,000 |
1,350,000 |
225,000 |
|
Second breakpoint |
- 75,000 |
- 75,000 |
- 75,000 |
- 75,000 |
- 75,000 |
Sum |
50,000 |
1,125,000 |
150,000 |
1,275,000 |
150,000 |
Percent due |
x .03 |
x .03 |
x .03 |
x .03 |
x .03 |
Third amount due |
1,500 |
33,750 |
4,500 |
38,250 |
4,500 |
Total of amounts due |
Method 0 |
Method 1 |
Method 2 |
Method 3 |
Method 4 |
|---|---|---|---|---|---|
YTD current period |
2,500 |
34,750 |
5,500 |
39,250 |
5,250 |
Method 0 |
Method 1 |
Method 2 |
Method 3 |
Method 4 |
|
|---|---|---|---|---|---|
Gross overage billing |
2,500 |
34,750 |
5,500 |
39,250 |
5,250 |
Deannualized |
/12 |
/6 |
|||
Sum |
2,896 |
6,542 |
|||
Prior year to date gross overage billing |
-2,500 |
-3,646 |
-2,250 |
||
Current gross overage billings |
2,500 |
2, 896 |
3,000 |
2, 896 |
3,000 |
Current Period Adjustment |
Method 0 |
Method 1 |
Method 2 |
Method 3 |
Method 4 |
|---|---|---|---|---|---|
Gross sales overage rent |
-2,000 |
-2,000 |
-2,000 |
-2,000 |
-2,000 |
(billable amount) |
500 |
896 |
1,000 |
896 |
1,000 |
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.