Once tenants' turnovers are recorded (see How to enter Turnovers), you can configure how the reported turnover affects the rent that gets charged. There are several ways to combine turnover-based rent with a fixed Base Rent, depending on what the tenant's contract requires.
Note:
Before configuring turnover-based rent, enable Use Turnover in Real Estate Setup.
When to use this
Use this in the following situations:
- Charge turnover-based rent only, with no Base Rent.
- Charge whichever is higher - Base Rent or turnover-based rent.
- Charge Base Rent plus turnover-based rent together, with no comparison.
Scenario 1. Set the Turnover Rent rate
- Open the Service Price for the service that should be charged based on turnover.
- Set Quantity Type to Turnover.
- Enter the percentage rate in Unit Price. The system multiplies the tenant's total reported turnover for the period by this rate to get the turnover rent amount.
If this is the only price line for the lease unit, turnover rent is charged on its own. If there is also a separate Fixed or Area price line for Base Rent, both amounts are charged together (Scenario 3), unless you set up a comparison as described next.
Example below: Lease Contract Lines, Turnover Ledger Entry, and the resulting Service Journal line for this setup.
Scenario 2. Charge whichever is higher - Base Rent or Turnover rent
- On a Service Price line where Quantity Type is Fixed (or Area) set unit price as usual, enter a percentage in Comparative Turnover %.
- Choose a Turnover Rent Service No. A separate Service Code could be used for turnover-based charges.
When you run Create Charge Lines:
- If the turnover-based amount (reported turnover × Comparative Turnover %) is lower than or equal to Base Rent, the charge line uses Base Rent, under the original Service No.
- If the turnover-based amount is higher than Base Rent, the charge line uses the turnover-based amount instead, still under the original Service No.
If you run Create Charge Lines again with Recalculate Amounts enabled (for example, once turnover data has been entered):
- If the turnover-based amount is higher than Base Rent, the line's Service No. is switched to Turnover Rent Service No.
- If the turnover-based amount is lower than or equal to Base Rent, the line's Service No. stays as (or reverts to) the original service, charged at Base Rent.
Example below Service Journal line.
If the turnover figure is entered only after the Base rent charge line has already been posted, run Create Charge Lines again for that period with Recalculate Amounts enabled. This creates an additional charge entry for the difference, under Turnover Rent Service No. (if one is set on the Service Price line).
Note:
If Use Lease Unit Area as Quantity is enabled in Real Estate Setup and Base Rent uses Quantity Type = Area, the initial charge line is created with Base Rent calculated from the area. The comparison with turnover-based rent is only performed when you run Create Charge Lines with Recalculate Amounts enabled.
Scenario 3. Charge Base Rent and Turnover Rent together
Set up a Quantity Type = Fixed or Area price line in Service prices table for Base Rent and a separate Quantity Type = Turnover price line, without filling in Comparative Turnover %. Both amounts are charged in full, with no comparison between them.
Example below: Lease Contract Lines, Turnover Ledger Entry, and the resulting Service Journal line for this setup.
Summary
| Scenario | Configuration | Total billing |
| Whichever is higher | Base Rent line + Turnover line with Comparative Turnover % and Turnover Rent Service No. | Base Rent, or the turnover-based amount when it is higher |
| Base Rent + Turnover Rent | Base Rent line + Turnover line, no Comparative Turnover % | Base Rent + Turnover Rent |
| Turnover Rent only | Only a Turnover line | Turnover Rent |
| Base Rent only | Only a Base Rent line | Base Rent |