> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tangoanalytics.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Generate percentage rent

> Calculate and generate percentage rent payments based on tenant sales data.

Percentage rent is calculated from tenant sales data and then converted into payment records. This process has two phases: running the calculation and generating the payments.

## Prerequisites

Before generating percentage rent, make sure:

* The lease has an active **Percentage Rent** setup with breakpoints defined.
* The **Exclusions/Offsets/Caps** tab has at least one entry capturing gross sales using the `GROSS` code.
* The **Payment Type to Assign** field on the Percentage Rent Basic Info tab is populated (commonly "Percentage Rent").
* Sales data has been imported or manually entered for the period.

## Set up percentage rent

<Steps>
  <Step title="Verify recurring costs">
    In **Lease Details → Recurring Costs**, confirm the base rent (or applicable cost) is set up. If percentage rent requires special allocation logic, create a recurring cost with the Percentage Rent payment type.
  </Step>

  <Step title="Open Percentage Rent">
    Go to **Lease Financials → Percentage Rent** and click **New**.
  </Step>

  <Step title="Configure basic info">
    Set the **Breakpoint Type** (for example, Natural Breakpoint), **Calculation Method**, reporting dates, and reporting due days. Set **Status** to Active.
  </Step>

  <Step title="Add breakpoints">
    Click the **Breakpoints** tab, then **New**. Enter the effective dates, the percentage rate, and the breakpoint factor.
  </Step>

  <Step title="Define sales types">
    Click **Exclusions/Offsets/Caps**, then **New**. At minimum, add a record with **Sales Type: Sales**, **Subtype: Gross Sales**, and the applicable sales code and effective dates.
  </Step>
</Steps>

## Generate payments

<Steps>
  <Step title="Import or verify sales data">
    Confirm that sales data for the target period is loaded in the system. Use the **Import Sales** action on the lease home if importing via file.
  </Step>

  <Step title="Run the calculation">
    From the lease home, click **Generate Percentage Rent**. Select the **Calculations** radio option, enter the From and To month/year, select the Lease Financials Group, choose All or specific leases, then click **OK**.
  </Step>

  <Step title="Generate payments">
    Click **Generate Percentage Rent** again. This time select the **Payments** radio option. Enter the same period and financials group, then click **OK**.

    <Note>Payments are only generated when an amount is due based on the calculation result.</Note>
  </Step>

  <Step title="Review results">
    Navigate to **Lease Financials → Lease Payments** and find the generated percentage rent payment. You can also view calculation details under **Lease Financials → Percentage Rent → Calculations**.
  </Step>
</Steps>