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