Percentage rent, calculated and billed correctly.

Natural and artificial breakpoints

A natural breakpoint is base rent divided by the percentage rate — the sales level at which the percentage exactly equals base rent. An artificial breakpoint is any figure the parties negotiated instead, higher or lower, and it overrides the natural calculation.

Vespy derives the natural breakpoint from the lease terms and lets an artificial one override it explicitly, so the number in the system matches the number in the document rather than one someone computed by hand and never revisited.

• Natural breakpoint derived from base rent and the percentage rate
• Artificial breakpoint override recorded on the lease
• Percentage applied only to sales above the breakpoint
• Annual true-up generated from submitted sales

Collecting tenant sales

Percentage rent depends on sales you do not control and cannot see. Getting them reported on time, in a consistent format, and attributable to a period is most of the operational work.

Tenants submit sales through the portal per period, with the submission tracked by status and author. What was reported, when, and by whom is on the record — which matters when a figure is later disputed or amended.

The annual true-up

Once the period’s sales are in, the true-up is arithmetic: total reported sales, less the breakpoint, times the rate, less any percentage rent already billed during the year.

Vespy generates the true-up charge from the submitted sales rather than requiring someone to recompute it, and the resulting charge posts through the same double-entry ledger as every other billing.