NetLease - Monthly Percent Rent Sales

Monthly Rent Sales

Percentage Rent clauses use sales to determine a portion of the lease liability payment to the lessor. The lease payment is based off sales from a specified period. 

This process must be done every month before amortization entries are run. If the payment is not made yet, the system will book a liability once the sales breakpoint is reached. Monthly sales must be run to ensure expense recognition is matched to the correct period.

Percentage Rent Sales Calculation

Use Case: This process calculates the sales for the period using the sales search specified when the percentage rent clause was created. The following process goes through the steps to calculate sales and to book the journal entries for the period. 

Prerequisite: All lease percentage rent clauses must be added to the leases. See our guide to add Percentage Rent Clauses if they are missing. Leases must be commenced to run journal entries as well. Leases also must have a designated Location in the lease record.

Step By Step Process:

  • Navigate to NetLease > Percentage Rent > Calculate % Rent Sales. 
    • One Time Setup: navigate to Customization > Centers and Tabs > Center Categories > New and save a new Center Category to both the Classic Center NetLease center tab and the Accounting Center NetLease center tab, both with the Calculate % Rent Sales link included
    • Please Note: If the link does not appear below you will need to re-update the NetLease bundle with "Update Deployments" for the "NetLease - Journal SL" suitelet. This will wipe out any permissions set for who can generate journals, bills, etc. Therefore, you will need to do a second bundle update with the "NetLease - Journal SL" set to "Do No Update Deployments" to ensure that permissions don't get wiped in the future bundle releases.

  • A list of leases with a percentage rent clauses that apply to the given period will show. The list of leases can be narrowed down by adjusting the filters subsidiary, location, lease type, or specific lease. The list will automatically update as filtering options are selected. 
  • Select the desired leases and select Calculate Sales.

  • Once the transaction is processed, the sales data as well as the the percent rent expense due will show. The first line will show the sales to date within the clause period and percentage rent expense for the month selected. If the percent rent payment is made in arrears a subsequent line will show the month when the payment is applied, depending on the number of months in arrears inputted when the clause was created. No journals entries are ran at this point.

  • The amortization journal entry can now be ran like normal from the lease record. Navigate to NetLease > Lease Management > Lease List > Select View for the lease. See our guides for running monthly journals for more detail.
  • Click Generate Transactions and Refresh until the journals are created.
Processing Error
Sales data must be imported or calculated before running amortization entries for the period. This way sales are applied to the amortization entry. You will receive an error if you try to run the amortization entry first.
  • Two additional journal entry lines will be booked. A separate payable and expense will show for the percent rent portion of the lease liability. These accounts are mapped in the lease record under the subtype Percentage Rent Accounts. These accounts will naturally true up as sales are updated and monthly rent sales are ran each month.

  • Percentage Rent Billing: It is possible to use the NetLease automated Billing feature with percentage rent. To do this, you must first configure the lease type with the correct expense account, payable account, and payment billing item. Navigate to the NetLease Setup --> Manage Lease Type --> Edit and select the lease type that is used for the percentage rent lease. Find the Percentage Rent Account subtab and fill in the accounts and billing item you would like to use. The billing item must be a Non-Inventory Item for Purchase and the Income Account on the item should match the Lease Payable Clearing Account on the Lease Type.

  • The bill can then be generated using the normal automated billing functionality with NetLease. The bill will have two lines representing the monthly lease payment and the percent sales fee. See this article for more details.

Percentage Rent Sales Import

Use Case: Monthly sales amount can also be imported instead of calculated using the sales search.

Step By Step Process:

  • Navigate to NetLease > Percentage Rent > Calculate % Rent Sales. Select Export to download a list of the leases with the Sales Import ID.

  • Navigate to Setup > Import/Export > Import CSV Record. Select Custom Record as the Import Type and NetLease Schedule Line as the Record Type. Upload the CSV file with the fields for Lease, Lease Import ID, Sales Import ID, and Sales for the period. The import will be an update to the schedule line.

  • Map the fields to the corresponding NetSuite fields. The Sales Import ID will be mapped to the Internal ID for the schedule line.

  • Journal entries should be run like normal for the period following import. The journal entries and transactions will be the same as above.



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