Steps for sales-based billing rule setup
- 01
Open billing rules and start a new royalty or fee.
- 02
Set the amounts, effective dates, services or classes, franchises and payment destination.
- 03
Preview the charges against recent sales reports.
- 04
Publish the rule only when the preview matches the agreement.
What the finished work leaves you with
A saved billing rule with its calculation method, services or classes, dates, availability, payment destination, preview, and approver.
What to do when the review finds a problem
You are creating or changing a sales-based rule
Pick the calculation method first, then choose services and enter values.
The rule should not cover every service or class
Select the services or classes it applies to.
The calculation method and services are confirmed
Set effective dates and a payment destination that fit the rule’s reporting periods.
The rule is ready to turn on
Keep it in review until the preview matches what you expect.
A common mistake to avoid
Leaving the services or classes unselected, so editing a rate or tier quietly changes what the rule covers.
Sales-based franchise billing rule checklist
Use this checklist when setting up a billing rule based on reported sales, such as a royalty. It checks the calculation, which franchises and services it covers, the dates, the payment destination, and the preview, so everyone understands the rule before it affects invoices.
Before you start
- Confirm the rule type, the services or classes it covers, the franchises affected, and the start date.
- Have the payment destination and recent sales reports available for the preview.
- Decide who reviews the preview and who can turn the rule on.
When a sales-based billing rule calculates unexpectedly
A sales-based rule can look right but use the wrong rate, franchises, dates, or sales figures. Work through one sample period, check the rule’s inputs, and keep a record of the previous settings while you look into it.
The amount is higher or lower than expected.
Check first
- Confirm the rate or tiers, the sales figure used, and how amounts are rounded.
- Compare the rule’s start and end dates with the reporting period.
- Check whether a service, class, adjustment, or exclusion changed which sales count.
Next action
Work one sample calculation from sales to amount, then fix the rule setting or sales column that explains the gap. Keep a record of the previous settings rather than overwriting history.
Confirm the result
A new preview gives the expected amount and shows the rate, sales figure, and rule used.
The rule applies to franchises or services it should skip.
Check first
- Review which franchises, services, and classes the rule applies to.
- Compare one franchise that should be included with one that should not.
- Check whether the reporting period falls inside the rule’s dates.
Next action
Fix who the rule applies to and preview both sample franchises before turning it on. Do not delete sales reports or edit amounts by hand to make up for it.
Confirm the result
The preview includes only the intended franchises, and the rule clearly shows who it applies to.
A saved rule does not affect the next billing period.
Check first
- Confirm the rule is active for that period.
- Compare its start and end dates with the period.
- Check whether another active rule covers the same franchises and takes priority.
Next action
Agree with the rule owner which rule should apply, then preview the period with that rule. Leave the old rule in place for past periods and note when the change takes effect.
Confirm the result
The preview names the rule that applies and the expected franchises before any billing goes out.
The rule calculates correctly but has nowhere to send payment.
Check first
- Confirm the payment destination belongs to your account and is ready to use.
- Check whether the destination is set on this rule or only on another rule.
- Read any setup or verification message on the destination.
Next action
Send the payment destination problem to whoever manages it, then check the rule again. Do not turn on a rule with a broken payment destination just because its preview looks right.
Confirm the result
The active rule names a ready payment destination, and nothing flags it as not ready.
When you need to hand it on
- Include the rule, rate or tiers, dates, franchises it applies to, a sample sales figure, and the unexpected amount.
- If the wrong franchises are included, give one that should be included and one that should not.
- Ask the rule owner to approve any change to future billing amounts or the payment destination.
Link to the record instead of copying passwords or unrelated personal details into your note.
A situation to work through
A draft royalty rule applies to only some franchises and has a minimum charge. The admin checks which franchises it covers, the rate, the effective dates, and how the minimum combines with the sales report before publishing.
Trace each part of the rule to the franchises and services it covers, then check the calculation, effective dates, and payment destination.
This is a planning example, not a customer result.
How do teams set up sales-based billing rules?
Choose the fee type, its amounts and effective dates, the services or classes it bills, the franchises it applies to and the account it is paid into. Preview the charges before you publish it. Once published, a rule is changed by replacing it from a date, so billed periods keep the terms they were billed under.
Put the workflow into practice
In Granite, royalty and fee rules have effective dates, apply to the franchises you choose, and are previewed against real sales reports before anything is invoiced.
Set it up in Granite with your own franchises, reporting periods and billing rules.