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Accounting Distribution

RouteTech edited this page Jun 25, 2018 · 2 revisions

Distribution Processing

This process is the core of the revenue sharing calculations. It is sometimes referred to as the deal sheet, lease, contract, commission, split, formula etc.

There are three main classes of distribution. 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/payee.

Simple Examples

  • 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 (often suites or machines) per period.
  • Fixed Amount Per Unit Per Day: a set amount 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).

Progressive Scale

  • Similar the the sliding scale except that the steps are not incremental.
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