Percent Rent Accrual Method Settings

Administrators can configure the methods that Lucernex uses to calculate percentage rent accruals from the Financial Settings tab of the Manage Company page in the Admin tool.

To configure your percentage rent accrual method settings:

1. Click Admin in the toolbar in the upper-right corner of the window.

   The System Administrator Dashboard page opens.

2. Click Manage Company link in the Company Administration column.

   The Manage Company page opens.

3. Select the Financial Settings tab.

   The Financial Settings page opens.

4. Select the test method you want Lucernex to use from the Percent Rent Accrual Test Method field.

   Your test method is what you will use to determine if you need to set aside funds for percent rent. Your options are as follows:

   • Forecast/Actual Sales with Annual Breakpoint: used when you load forecasted sales into the system. Each period, the system compares your year-to-date sales to the annual breakpoint. This method takes into account both forecast and actual sales.

   • Actual Sales with No Proration of the Annual Breakpoint: Each period, your year-to-date sales will be compared to the annual breakpoint. The system only takes actual sales into account.

   • Actual Sales with Proration of the Annual Breakpoint: The system compares your year-to-date sales to a prorated breakpoint amount. This method only takes into account actual sales.

5. Select the calculation method you want Lucernex to use from the Percent Rent Accrual Calculation Method field.

   Your calculation method is what you use to determine your accruals, once you have determined that you need to accrue. Your options are as follows:

   • Constant Accrue Amount with Catchup: The amount to be accrued will be spread across all periods, and a catch-up amount will be added to the current period to cover for past periods.

     • Accrual = [(YTD Sales - Breakpoint) * rate] / Total Periods

       where (YTD Sales - Breakpoint) is the test method

     • Catchup = (Accrual * Number of Prior Periods) - Prior Period Accrual Acount

     • Current Period Accrual = Accrual + Catchup

   • Accrue into Remaining Periods: The amount to be accrued will be spread over the remaining periods.

     • Accrual = {[(YTD Sales - Breakpoint) * rate] - Previously Accrued Amount} / Number of remaining periods

       where (YTD Sales - Breakpoint) is the test method

   • Accrue Year-to-Date Percent Rent: The amount to be accrued will be the amount owed in that period. The accrual will NOT be spread through the year.

     • Accrual = [(YTD Sales - Breakpoint) * rate] - Previously Accrued Amount

       where (YTD Sales - Breakpoint) is the test method

6. Click Update at the bottom-center of the page.

   The percentage rent methods are updated.