(Fare + Taxes) - Commission - Comm. Tax + Penalty = Net Remittance (CASH)
(Fare + Taxes) + Penalty = Net Remittance (CREDIT CARD)
In other words, for CASH sales we remit everything but our Commission and Tax on Commission, and for Credit Card sales we remit everything. In actual fact, there was nothing to remit for Credit Card sales, because the funds went directly to the validating carrier and bypassed both the agent and BSP. The agent simply sold the ticket on behalf of the carrier, and is expecting a commission in return. BSP's function is to distribute those funds to the participating carriers and the agent.
(Fare + Taxes) - Commission - Comm. Tax + Penalty = Net Remittance (CASH)
- Commission - Comm. Tax + Penalty = Net Remittance (CREDIT CARD)
BSP's perspective for CASH sales is the same as the agent's, but for CREDIT CARD sales their position is "We already have the funds; what do we owe the agent?".
Page 1 of the report shows agent totals for several of the columns, and other columns are simply informational. (Fare + Taxes) is shown in the columns marked FARE VALUE, GST/HST, TAX, and TAX, but these columns add up to the TOTAL SALES column, so they are essentially redundant. Therefore, the only columns that need to be considered for CASH sales are:
TOTAL___COMMISSION___COMM___PENALTY___NET
SALES_____AMOUNT_______TAX_______________REMIT
and for CREDIT CARD (designated by C) sales:
COMMISSION___COMM___PENALTY___NET
__AMOUNT_______TAX_______________REMIT
These columns will normally add up left to right and top to bottom according to the formula shown in BSP's perspective above. The difference is that in our formula we subtract the COMMISSION and COMM TAX, whereas BSP shows these as negative values and adds them instead. The end result is the same, but it can sometimes be confusing.
(Fare + Taxes) + (-Commission) + (-Comm. Tax) + Penalty = Net Remittance (CASH)
(-Commission) + (-Comm. Tax) + Penalty = Net Remittance (CREDIT CARD)
You're right; they don't always add up. For reasons unknown, when BSP makes an adjustment, it appears as a one sided entry with explanation shown elsewhere. To add up left to right, the report should show what the adjustment is made up of. In some cases, it is a COMMISSION and COMM TAX adjustment only, and in other cases it includes FARE and TAXES. So in order to properly account for these funds, you must add those entries to the report manually to keep it in balance. For example, on a commission only adjustment of $107.00- (they owe you another $107.00), the COMMISSION column should show 100.00- and the COMM TAX column should show 7.00-. If BSP was claiming another $107.00, the COMMISSION column should show 100.00 and the COMM TAX column should show 7.00.
You can, but it is even more confusing with a lot of additional information that does not add up. You are better off to stick to the detailed section of the report, because you can at least make it add up.
Both Travpro and Manta have a feature built in that allows you to make a Commission/Commission Tax adjustment via invoicing. It is a holdover from the days when Travel Agents could claim a commission on tickets purchased with Frequent Flyer points. In order to calculate a commission, invoicing needs a fare. But the customer cannot have anything debited to his/her account. So we choose the customer that the sale is relevant to, and we make it a CASH sale (since it is a cash adj.). When we enter the Passenger Name, we put an "@" in front of it. This tells the invoicing routine to use the fare to calculate the Commission, but don't add it to the invoice total. Because there is no actual fare, you cannot charge tax on it. In TravPro, you can add Commission Tax (GST/VAT on Commission) later using the adjustment routine. The new Manta program has a provision that allows you to enter GST/VAT on fare (doesn't auto calculate). After the invoice is printed, the program then recognizes that there is no fare and converts it to tax on commission.
When trying to decide whether the fare amount should be neagtive or positive, just remember what the routine was originally created for. If you are claiming a commission, you want to calculate commission on a positive number. If BSP is claiming commission back from you, you want to calculate it on a negative number. And bear in mind that BSP often shows commissions in the opposite value on their report. Confusing? Yes, but it relates to the non-standard way in which BSP shows these values. Will it change? Not likely. In researching for this write-up, BSP reports from today are pretty much the same as they were in 1995. We suspect that the same programs were in use then as are in use today.