This article is written using terminology for wholesale systems. However, the contents of this article are equally relevant for retail systems.
For retail systems, replace:
Travel Agent with Corporate Client
Commission with Reduction
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This article is written using terminology for wholesale systems. However, the contents of this article are equally relevant for retail systems. For retail systems, replace:
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When setting up a travel agent, you need to define (according to the terms you negotiated with the travel agent) whether invoices issued to the travel agent are credit invoices (green) or cash invoices (black). You also need to determine whether the amount displayed on the invoices issued to the travel agent are gross amounts or net amounts. The amount on the invoice determines when a travel agent receives a commission - when the invoice is issued in the travel file or during the periodic reconciliation.
In the travel agent's account, in the Company Information section:
The Credit limit field determines whether the invoice is a cash invoice or credit invoice
The Invoice amount field determines whether the invoices are for gross or net amounts
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The commission amount is always displayed on the invoice. The different gross vs. net options, determine whether the commission is included in the invoice total, or whether a separate ACI document is issued in the travel file. |
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ACI documents are issued in the invoice currency by default. If an ACI is issued for multiple invoices in different currencies, the ACI is issued in the Travel Agent's currency. |
If the travel agent has a credit limit, and the invoice amount is defined as Net:
When issuing an invoice in the travel file, the invoice amount is issued on the net amount (does not include commission). A separate Agent Commission Invoice (ACI) is issued in the travel file for the commission.
Both documents credit the travel file. The invoice debits the travel agent account and the ACI debits the travel agent's commission account.
If the passenger is paying the invoice:
In the invoice in the travel file, you need to select the option Payment by Customer. The receipt beneficiary is the passenger.
Payment is done in the travel file. The receipt is initialized with the gross amount.
In the travel agent account, the receipt will have the negative ACI amount marked as Left to pay. This can be used for future reconciliation or you can issue a remittance to the travel agent for this amount.
If the travel agent is paying the invoice in the travel file:
In the invoice in the travel file, you need to select the option Payment by Agent. The receipt beneficiary is the travel agent.
Payment is done in the travel file. The receipt is initialized with the net amount.
The receipt does not cover the ACI.
If the travel agent is paying the invoice during periodic reconciliation:
Payment is done in the travel agent account. The receipt is initialized with the net amount.
The receipt does not cover the ACI.
If the travel agent has a credit limit, and the invoice amount is defined as Gross:
When issuing an invoice in the travel file, the invoice amount is issued on the gross amount (includes commission). The invoice credits the travel file and debits the travel agent's account.
If the passenger is paying the invoice:
In the invoice in the travel file, you need to select the option Payment by customer. The receipt beneficiary is the passenger.
Payment is done in the travel file. The receipt is initialized with the gross amount.
The receipt is issued in the travel agent's account and the ACI is issued in travel agent's commissions account.
The ACI is not covered by the receipt.
If the travel agent is paying the invoice in the travel file:
In the invoice in the travel file, you need to select the option Payment by agent.
When issuing the receipt, in the ACI Reference No: field, enter the reference number of the tax invoice issued by the travel agent.
Payment is done in the travel file. The receipt is initialized with the net amount.
The receipt is issued in the travel agent's account and the ACI is issued in travel agent's commissions account.
The receipt covers both the receipt and the ACI.
If the receipt amount is changed, an ACI is not issued and the invoice is marked as Partially Paid. An ACI will be issued once the invoice becomes fully covered.
If the travel agent is paying the invoice during periodic reconciliation:
In the Travel Agent Reconciliation module, the receipt is issued for the Net amount, and a separate ACI document is issued with the receipt.
When issuing the receipt, in the ACI Reference No: field, enter the reference number of the tax invoice issued by the travel agent.
The receipt covers both the invoice and the ACI.
If the travel agent does not have a credit limit, and the invoice amount is defined as Net:
If the passenger is paying the invoice:
When issuing an invoice in the travel file, you need to issue an invoice on the gross amount. There is an option for this in the Invoice Definitions page - Payment by customer (gross invoice).
The invoice does not credit the travel file. To balance the travel file, a receipt needs to be issued for the invoice when payment is received.
An ACI document is issued in the travel agent's commissions account. To reconcile this document, in the Travel Agent Reconciliation module, you need to issued a remittance document for the ACI to pay the travel agent the commission that is owed.
If the travel agent is paying the invoice:
When issuing an invoice in the travel file, the invoice is issued on the net amount (does not include commission). A separate ACI document is issued in the travel file with the commission amount.
The invoice is a cash invoice and does not credit the travel file. The ACI credits the travel file. To balance the travel file, a receipt needs to be issued for the invoice when payment is received.
If the travel agent does not have a credit limit, and the invoice amount is defined as Gross:
When issuing an invoice in the travel file, the invoice is issued on the gross amount (includes commission).
The invoice is a cash invoice and does not credit the travel file. To balance the travel file, a receipt needs to be issued for the invoice when payment is received.
An ACI document is issued in the travel agent's account. To reconcile this document, in the Travel Agent Reconciliation module, you need to issued a remittance document for the ACI to pay the travel agent the commission that is owed.
Click here for a detailed example.
