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Commission Accounting

How agent commissions are handled in the accounting system.

Accounting Configuration​

Agent Commission Account​

A system-level field must be configured:

Field Name: Agent Commission Account

Characteristics​

Similar to other system accounts:

  • Invoice Payment Account
  • VAT Class

Properties:

  • ✅ System-level configuration
  • ✅ Cannot be removed
  • ✅ Used for all agent commission postings
  • ✅ Designed to support VAT in future versions

Setup Location​

Path: System Configuration → Accounting → Agent Commission Account

After Departure Processing​

Trigger​

Commission entries are created automatically when:

  • Tour Status changes to Departed

System Actions​

When tour departs, system automatically:

  1. Creates Commission Entry

    • Calculates final commission amount
    • Generates accounting entry

  2. Posts to Account

    • Posts to Agent Commission Account
    • Records as negative value

  3. Updates Reports

    • Appears in Sales Report
    • Shows in Agent Commission column

Accounting Entry Details​

Entry Characteristics​

PropertyValue
AmountNegative value
BasisCalculated commission
AccountAgent Commission Account
TimingAfter departure
VATNot applied (Phase 1)

Example Entry​

Date: 2024-06-15 (Departure Date)
Booking: BK-2024-001234
Agent: Travel Partners Ltd

Entry:
Account: Agent Commission
Amount: -£150.00
Description: Commission for booking BK-2024-001234
Agent: Travel Partners Ltd (15%)

Sales Report Integration​

Report Columns​

Sales Report includes:

ColumnDescription
Booking NumberReference
Agent NameCompany name
Booking TotalGross amount
Agent CommissionNegative amount
Net RevenueTotal - Commission

Example Report​

Booking    Agent             Total      Commission  Net Revenue
─────────────────────────────────────────────────────────────
BK-001     Travel Partners   £1,200     -£150      £1,050
BK-002     Global Tours      £2,400     -£300      £2,100
BK-003     Cruise Direct     £3,600     -£540      £3,060

Filtering Options​

Reports can be filtered by:

  • Agent company
  • Date range
  • Commission percentage
  • Booking status

Accounting Workflow​

Step-by-Step Process​

┌──────────────────┐
│ Booking Created  │
│ (Commission      │
│  calculated)     │
└────────┬─────────┘
         │
         │ Booking Confirmed
         │
         ▼
┌──────────────────┐
│  Tour Operates   │
└────────┬─────────┘
         │
         │ Status → Departed
         │
         ▼
┌──────────────────┐
│ Auto Create      │
│ Commission Entry │
└────────┬─────────┘
         │
         ▼
┌──────────────────┐
│ Post to Agent    │
│ Commission Acc   │
└────────┬─────────┘
         │
         ▼
┌──────────────────┐
│ Appear in Sales  │
│     Report       │
└──────────────────┘

Accounting Examples​

Example 1: Standard Commission​

Booking Details:

  • Booking Total: £1,200
  • Agent Commission (15%): £150
  • Departure Date: 2024-06-15

Accounting Entry (After Departure):

Date: 2024-06-15

Dr. Agent Commission Account    £150.00
    Cr. Revenue Account                    £150.00

Description: Commission - BK-2024-001234
Agent: Travel Partners Ltd

Example 2: Multiple Bookings​

Agent: Travel Partners Ltd (15%)

Bookings Departed on 2024-06-15:

BookingTotalCommission
BK-001£1,000£150
BK-002£2,000£300
BK-003£1,500£225
Total£4,500£675

Accounting Entries:

Date: 2024-06-15

Dr. Agent Commission Account    £675.00
    Cr. Revenue Account                    £675.00

Description: Daily commission - 3 bookings
Agent: Travel Partners Ltd

Reporting Capabilities​

Available Reports​

  1. Sales Report

    • Shows all agent commissions
    • Filterable by date/agent

  2. Agent Commission Report

    • Detailed commission breakdown
    • Per-agent totals

  3. Accounting Report

    • General ledger entries
    • Commission account balance

Report Filters​

Filter by:

  • Date range
  • Specific agent
  • Commission percentage
  • Booking status
  • Departure date

Important Notes​

Timing

Commission entries are created after departure, not at booking confirmation.

VAT

VAT on commission is not calculated in Phase 1. System is designed to support this in future versions.

Negative Values

All commission amounts are negative values to represent reductions in revenue.

Accounting Checklist​

Before using agent bookings:

  • Agent Commission Account configured
  • Account mapped in accounting system
  • Report access configured
  • Staff trained on commission reporting
  • Reconciliation process established

Next Steps​