RouteTech uses a five stage algorithm to calculate the revenue distribution.
Step 1: Collections/Receipts
- receipts are collected by location/sublocation either physically or electronically.
- the collections are totaled by account (one account can have many locations/sublocations)
- Day counts and various averages are computed.
Step 2: Deductions/Adjustments
There are 2 main methods the gross collected is affected, deductions and adjustments.
Standard deductions are excluded from the gross collected amount.
- Test money.
The adjustments processor is capable of much more complex calculations that affect the gross amount. Adjustments are deductions that apply under certain conditions. Adjustments have a frequency and a calculation method. Frequencies are by collection, day, month etc. whereas the methods are by activity.
- an amount is deducted per collection as a collection fee.
- an amount is deducted per year for annual taxes
- a percentage of gross is deducted for coin processing
- service calls are deducted
- an amount per machine per day.
There are three main classes of distribution(splits). Note that these calculations are based on the net amount that resulted from steps 1 and 2. In most cases the split identifies the portion as either for the operator or the account/vendor.
- Fixed Amount: a set amount of the net amount collected per period.
- Fixed Percentage: a percentage of the net amount collected per period
- Fixed Amount per unit: a set amount based on the number of units (usually suites or machines) per period.
- Fixed Amount Per Unit Per Day: Similar to 3 but based on a daily rate rather than a period rate.
Sliding Scale Examples
- Simple threshold: if the net revenue is above a threshold amount then a set amount or percentage is paid otherwise a different amount or percentage is paid.
- Multiple threshold: if the net amount exceeds the threshold then a different amount or percentage is paid until the next threshold (or incremental step).
- Similar the the sliding scale except that the steps are not incremental.
Step 4: Withholding Adjustments
The adjustment processor is capable of creating adjustments that affect the distribution after the amounts are calculated.
- Some adjustments are applicable only after the payment amount is calculated and an amount is withheld if specified.
- Guaranteed adjustments are deducted and may affect the account balance if specified.
Step 5: Balances
Accounts can have balances for a variety of reasons.
- Each account may/may not have an opening balance amount.
- The results of the payment processing steps are applied to the balance amounts.
- Balances accumulate over the course of the year and need to be settled annually.