Core TSIs : Turnover rent : Concepts : Accumulated sales period
Accumulated sales period
An accumulated sales period is a defined timeframe in which a lessee’s sales from multiple periods - such as months, quarters, half-years, or a full year - are combined (accumulated) to calculate turnover rent.
This approach helps smooth out sales fluctuations, resulting in a fairer rent calculation over time. When sales vary significantly throughout the year, accumulating them allows for a more even distribution of turnover rent. This method can also be combined with a minimum guaranteed rent to spread payments more evenly across the year.
At the end of the accumulation period, the final turnover rent is calculated based on the total accumulated turnover and the applicable breakpoint or tiered thresholds. The accumulated payments are then deducted from the final amount due, ensuring that the lessee only pays turnover rent once per portion of turnover and avoiding overpayment.