Percentage Rent calculates and posts additional rent charges based on qualifying tenant sales and the Percentage Rent configuration on each lease.
Access Percentage Rent Billing
Go to Tasks > Percentage Rent > Process Percentage Rent.
The page includes:
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Processing Details
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Lease Selection
Complete Processing Details
Complete the following fields:
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Property: Select the property whose leases you want to process.
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Cutoff Date: Determines which Percentage Rent records qualify for processing and limits the sales entries included in the calculation.
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Transaction Date: Used as the transaction date and due date of invoices created from the calculated Percentage Rent charges.
After selecting a property, SIRE loads the leases with Percentage Rent configured for that property.
Select Leases
The lease list displays:
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Lease name
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Store type
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Last charge date
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Next charge date
Select at least one lease to continue.
You can use the lease filter to find a specific lease. Only selected leases are included when you select Preview Charges.
Preview Percentage Rent Charges
Select Preview Charges.
SIRE processes the selected leases in the background and sends a notification when the preview is ready.
The preview shows the results by property, lease, unit, and tenant. It may include:
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Calculation period
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Breakpoint method
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Sales base type
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Cap comparison method
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Cap amount
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Item ID
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Sales base amount
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Total overage
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Monthly overage details
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Calculated charge amount
The preview can also explain why a lease did not qualify or why no charge was generated. For example:
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The Percentage Rent Billing Next Date is after the Cutoff Date.
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The Cutoff Date is outside the configured overage dates.
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No sales entries were found for the lease.
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No sales exceeded the configured breakpoints.
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The calculated sales base amount is greater than the overage amount.
How SIRE Determines The Calculation Period
SIRE filters sales entries using the Percentage Rent configuration on the lease.
The sales entry must:
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Match the configured sales type, such as Reported, Estimated, or Audited.
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Have a sales date within the calculation period determined by the breakpoint method.
The calculation period uses whole calendar months.
For the Cumulative method:
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The period begins based on the tenant fiscal year and the configured tenant fiscal year-end date.
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The period ends at the end of the month containing the Percentage Rent Billing Next Date.
For the Non-Cumulative method:
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The period begins based on the Billing Next Date and configured month frequency.
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The period ends at the end of the month containing the Billing Next Date.
How SIRE Calculates The Charge
SIRE calculates the charge using the following values:
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Qualifying sales entries
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Breakpoint method and breakpoint table
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Sales base amount
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Optional cap amount
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Rounding configuration
Sales Base Amount
The sales base can be configured as:
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A fixed Amount entered on the lease.
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Based on Charges, using recurring charges marked Subject to Percentage Rent.
When the sales base is based on charges, SIRE calculates the applicable recurring charges using the selected cutoff date.
Overage
SIRE applies the lease’s breakpoint table to the qualifying sales entries.
The calculation depends on the selected breakpoint method:
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Cumulative: Sales are accumulated across the calculation period.
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Non-Cumulative: Each month is calculated independently.
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Prorated: Available in the current system and should be used according to the company’s configured Percentage Rent process.
For detailed examples, see:
Final Charge
SIRE compares the calculated overage with the sales base amount.
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If the sales base amount is equal to or greater than the overage, no charge is generated.
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If the overage is greater than the sales base amount, SIRE calculates the amount above the sales base.
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If a cap is configured, SIRE applies the cap according to the selected cap comparison method.
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SIRE applies the configured rounding option before presenting the final charge.
Post Percentage Rent Charges
Review the preview results before posting.
If the preview contains charges, select Post Charges.
SIRE creates an invoice for each applicable tenant using:
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The final calculated charge amount
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The Percentage Rent Item ID configured on the lease
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The processing Transaction Date
Invoices are created in SIRE and sent to Sage Intacct Accounts Receivable.
If the total charge amount is zero, SIRE does not create an invoice for that lease.
Update Percentage Rent Dates
After charges are generated, SIRE updates the Percentage Rent dates for the processed leases.
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Billing Last Date is updated to the date when the process is run.
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Billing Next Date advances by the configured Months Frequency.
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Tenant Fiscal Year End Date advances when the cumulative calculation reaches the configured fiscal year end period.
Verify The Results
After posting:
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Confirm that the notification indicates the charges were generated.
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Review the generated invoices in SIRE.
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Confirm the tenant, lease, unit, amount, Item ID, and transaction date.
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Verify the invoice in Sage Intacct Accounts Receivable.
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Confirm that the lease’s Billing Last Date and Billing Next Date were updated as expected.
Frequently Asked Questions
Which Leases Can I Select?
SIRE loads leases with Percentage Rent configured for the selected property. You must select at least one lease to generate a preview.
What Is The Difference Between The Cutoff Date And Transaction Date?
The Cutoff Date determines which leases and sales entries qualify for processing. The Transaction Date is used for invoices created from the calculated charges.
What Happens If No Sales Entries Are Found?
SIRE includes the lease in the preview with a message indicating that no sales entries were found. No invoice is created.
What Happens If The Sales Base Is Greater Than The Overage?
No Percentage Rent charge is generated because the sales base amount is equal to or greater than the calculated overage.
Are Invoices Created When I Select Preview Charges?
No. Preview Charges only calculates and displays the expected results. Invoices are created after you review the preview and select Post Charges.
Where Are Percentage Rent Invoices Posted?
The invoices are created in SIRE and sent to Sage Intacct Accounts Receivable.
What Happens To The Billing Dates After Posting?
SIRE updates the Billing Last Date and advances the Billing Next Date according to the lease’s Percentage Rent configuration.