1. Real Estate Management Implementation Guide
  2. Understanding Billing Calculations and Sales Overage Computation Methods

Understanding Billing Calculations and Sales Overage Computation Methods

The system verifies the information in the following tables before performing billing calculations for sales overage:

  • 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 exist:

  • 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 F1541B 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 F1540B table and the Invoice Estimates field in the F15013B table. If sales estimates exist in the Projected Sales table (F1542), 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.

The system uses computation methods to control how to handle sales information, breakpoints, and percentages. To calculate sales overage, you can select from seven computation methods:

  • Method 0 - Weekly Sales

    The system uses the sales amount for the week to calculate the gross overage billing.

  • Method 1 - Each Period

    The system multiplies the sales amount for the current period by 12 to calculate the YTD gross overage billing. The system then divides the result by 12 to calculate the gross overage billing.

  • Method 2 - Cumulative

    The system uses the YTD sales amount to calculate the gross overage billing. The system then deducts the previous YTD gross overage billing to calculate the current gross overage billing.

  • Method 3 - Cumulative Pro Rata

    The system multiplies the YTD sales amount by 12 to calculate the YTD gross overage billing. The system then divides this amount by 12 before the previous YTD gross overage billing is deducted.

  • Method 4 - Modified Cumulative

    The system uses the YTD sales amount to calculate the YTD gross overage billing. During the calculation, the percentage for the highest breakpoint that is reached is applied to the entire amount of sales that exceeds the first breakpoint. The system then deducts the previous YTD gross overage billing to calculate the current gross overage billing.

  • Method 5 - Partial Year Pro Rata

    The system uses this method with the process for a year-end override if a tenant has moved in or out within a fiscal year that is specified in the system constants.

  • Method 6 - Lease Pro Rata

    The system uses the lease breakpoint to determine a maximum billable amount for the lease. The system then prorates the billable amount by the product code, based on the product code sales being a percentage of total sales.

    This method is similar to Method 3.