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 Settlement Frequency of the Sales Rule

Use

In the settlement frequency, you define:

a) The intervals in which the settlement of sales-based rent and the final settlement should occur

b) Whether the settlement should be separate per interval or cumulative for all periods of the settlement period

Procedure

Choose the Frequencies subtab and enter the following data:

1. Settlement Period

Settlement:

The period for the settlement is a mandatory entry. It must be defined in all cases.

Cumulative Settlement:

This is an option you can choose.

Final Settlement:

Final settlement can be performed (for example, in addition to settlement) at the end of the year, but it is not mandatory.

2. Frequency

The frequency determines the individual settlement periods.

Keep in mind that the individual settlement periods always include all reporting intervals of the assigned reporting rules.

If the frequencies of the assigned conditions (such as minimum sales-based rent, maximum sales-based rent, advance payments for sales-based rent) are not completely contained in the settlement period, then the conditions have to be limited accordingly.

3. Start of the Settlement Period

The start of the sales rule or the contract start are taken as the default value. If, however, this date falls within a settlement period, you have to define the start date.

For cumulative settlements and final settlements, the start of frequency always has to agree with the start of a settlement period.

4. Prorated Calculation

If the start or the end date of the sales rule (the same applies to the contract start/end) do not fall within the settlement period, this function can be used to have the system perform a prorated sales rent calculation. The prorated calculation method is also used to define whether the months are assigned their actual number of days or whether they always have 30 days.

The possibilities are:

  • The start and end date of the sales rule are within the settlement period.
  • Only the start date of the sales rule is within the settlement period.
  • Only the end date of the sales rule is within the settlement period
  • The calculation is not prorated.

Example

Cumulative Settlement

Here the cumulative settlement is always performed using the start date of the settlement frequency, and settlement includes all data from this date up to the end of the cumulation period.

Cumulative settlement - quarterly

  1. First quarter
  2. Mid-year (includes values of first and second quarters), taking settlement payments that were already made into account
  3. Third quarter (includes values of first, second and third quarters), taking settlement payments that were already made into account
  4. Annual settlement (includes values of first through fourth quarters), taking settlement payments that were already made into account

You can choose to pay out credit memos during cumulative settlement.