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 Calculation Rule for the Sales Rule

Use

The calculation rule is used to calculate sales-based rent from the reported sales. It forms part of the sales rule, but, unlike the reporting rule, it is not a term. This means that it can only be defined for one sales rule.

Procedure

  • Reporting Rule : The reporting rule is used to determine which sales types are involved for calculating the sales-based rent. Assign an existing reporting rule, or create a new one by choosing ( Create New RepRule .).

  • Gross/Net : In this field, define if net or gross sales are reported.

  • Minimum sales/Maximum sales : The amounts you enter here are used in calculating sales-based rent when monetary sales are less than the minimum amount or more than the maximum amount.

    You can define minimum/maximum limits for sales-based rent agreements in three different ways:

    • By entering the minimum/maximum sales-based rent amount

    • By using minimum amounts for each sales grading or setting an upper limit for the gradings

    • By assigning minimum/maximum rent conditions

      For more information on assigning conditions, refer to Conditions for the Sales Rule .

  • Minimum/Maximum Quantitative Sales : If sales-based rent is calculated using quantitative sales (in units of measure rather than monetary sales), you can enter minimum/maximum amounts here for quantities in the same way as for monetary sales above.

  • Calculation of Sales :

    • If the sales-based rent is to be calculated using linear (not graded) calculation on the basis of sales, enter the following data:

      • With monetary sales, the % rate (percentage rate) used for calculating the sales-based rent in the contract currency

      • For quantitative sales, the amount per unit of measure multiplied by the reported sales to produce the sales rent

    • With graded sales-based rent, the following entries are required for each sales grading:

      • With monetary sales:

        • Sales from/Sales to

        • % rate

        • Example: 10,000 to 50,000 = 5%

          50,000 to 100,000 = 8%

          100,000 or more = 6%

      • With quantitative sales:

        • Q. Sales from/Q. Sales to

        • Amount per unit of measure

    • For both types of sales, you can enter a minimum amount for each grading. This minimum amount is taken as the sales-based rent if the sales-based rent calculated for a grading turns out to be less than this minimum.