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Commission Rules & Calculation

Comprehensive guide to agent commission calculation.

General Rules​

RuleValue
Default Commission15% (configurable per agent)
Calculation BasisNet Amount (excluding VAT)
TransportNot commissionable (if excluded)
PickupNot commissionable (if excluded)
VAT on CommissionNot applied in Phase 1
Maximum CommissionNo limit enforced

Calculation Formula​

Scenario 1: Exclude Transport = TRUE​

If No Pickup:

Commission = (Booking Net Total - Transport Cost) × (Commission % ÷ 100)

If Pickup Available:

Commission = (Booking Net Total - Transport Cost - Pickup Cost) × (Commission % ÷ 100)

Scenario 2: Exclude Transport = FALSE​

Commission = Booking Net Total × (Commission % ÷ 100)

Calculation Examples​

Example 1: Standard Booking (No Transport Exclusion)​

Setup:

  • Agent Commission: 15%
  • Booking Net Total: £1,000
  • VAT: £200
  • Exclude Transport: No

Calculation:

Commission = £1,000 × 0.15
Commission = £150

Final Amounts:
Booking Subtotal: £1,000
VAT (20%): £200
Gross Total: £1,200
Commission (15%): -£150
───────────────────────
Total Payable: £1,050

Example 2: Sailing Trip (Transport Excluded)​

Setup:

  • Agent Commission: 15%
  • Booking Net Total: £2,000
  • Transport Cost: £500
  • Pickup Cost: £100
  • Exclude Transport: Yes

Calculation:

Commissionable Amount = £2,000 - £500 - £100
Commissionable Amount = £1,400

Commission = £1,400 × 0.15
Commission = £210

Final Amounts:
Booking Subtotal: £2,000
(Transport: £500)
(Pickup: £100)
VAT (20%): £400
Gross Total: £2,400
Commission (15%): -£210
───────────────────────
Total Payable: £2,190

Example 3: Transport Excluded (No Pickup)​

Setup:

  • Agent Commission: 20%
  • Booking Net Total: £1,500
  • Transport Cost: £400
  • Pickup Cost: £0
  • Exclude Transport: Yes

Calculation:

Commissionable Amount = £1,500 - £400
Commissionable Amount = £1,100

Commission = £1,100 × 0.20
Commission = £220

Final Amounts:
Booking Subtotal: £1,500
(Transport: £400)
VAT (20%): £300
Gross Total: £1,800
Commission (20%): -£220
───────────────────────
Total Payable: £1,580

Example 4: High Commission Agent​

Setup:

  • Agent Commission: 25%
  • Booking Net Total: £3,000
  • Exclude Transport: No

Calculation:

Commission = £3,000 × 0.25
Commission = £750

Final Amounts:
Booking Subtotal: £3,000
VAT (20%): £600
Gross Total: £3,600
Commission (25%): -£750
───────────────────────
Total Payable: £2,850

Booking Level Representation​

How Commission Appears​

Commission is displayed as:

  • Negative amount (shows reduction)
  • Visible in agent confirmation email
  • Included in sales reports
  • Posted to accounting

Example Booking Display​

Booking #BK-2024-001234

Services:
- Tour Package: £1,000.00
- Transport: £300.00
- Accommodation: £200.00
──────────
Subtotal: £1,500.00
VAT (20%): £300.00
──────────
Gross Total: £1,800.00

Agent Commission (15%): -£225.00
══════════
Total Payable: £1,575.00

Commission Visibility​

Where Commission Appears​

  1. Agent Booking Confirmation

    • Shown as line item
    • Negative amount format
  2. Sales Report

    • Separate column: "Agent Commission"
    • Filterable by agent
  3. Accounting System

    • Posted to Agent Commission Account
    • After departure processing
  4. Booking Summary

    • Visible to agent in portal
    • Not visible to end customer

Important Notes​

Negative Display

Commission is always shown as a negative value to represent a discount/reduction from the booking total.

VAT on Commission

VAT on commission is not calculated in Phase 1. Future versions will support this feature.

No Commission Cap

There is no maximum commission limit enforced by the system. However, business rules should be established for reasonable limits.

Quick Reference​

Decision Tree​

Is Transport Excluded?
├─ NO → Commission = Net Total × %
└─ YES → Is there Pickup?
├─ NO → Commission = (Net Total - Transport) × %
└─ YES → Commission = (Net Total - Transport - Pickup) × %

Formula Summary​

ScenarioFormula
StandardNet × %
Transport Excluded (No Pickup)(Net - Transport) × %
Transport Excluded (With Pickup)(Net - Transport - Pickup) × %

Next Steps​

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