Skip to Content
0
Former Member
Feb 11, 2011 at 03:17 AM

Complex Sales-Based Rent Computation

396 Views

HI SAP Gurus,

I would like to seek help on the following sales-based rent structure of our client. How do I set this up in the Contract?

Rent = Whicever is higher between (Minimum Guaranteed Rent) and (% of Graded Sales + Basic Rent)

Where:

Minimum Guaranteed Rent = (Area) x (Price per square meter)

% of Graded Sales = (% rate) x (Total Sales)

If total sales is from 0 - 3M, then % rate of rent = 5%

If total sales is from 3M & up, then % rate of rent = 4%

Basic Rent = (Area) x (Price per square meter)

The minimum guaranteed rent is billed in advance on a monthly basis. If after the Sales-Based settlement, the tenant has to pay more, will bill excess of the Minimum guaranteed rent.

All the help will be very much appreciated.

Thank you.

Lynne