Settlement & Reconciliation

Commission Invoicing

How commission is invoiced and reconciled in Midoco.

Midoco created a new feature 'Commission Invoicing' which is based on the new Module Settlement/Commission_Invoicing.

You may use this new functionality if:

you wish to invoice your commission independently of any supplier's invoices
you need to send off the commission invoice to a third party irrespective of who supplies (and invoices) the original service you purchased
the original service was bought/sold in 'agency collection' mode (meaning the supplier invoices you → you invoice your customer)

This functionality was released in 15.3 (Release 15.3 (29.07.2021)#Reconciliation-(Supplier)CommissionInvoicing), you can find some more information in the linked release notes page.

Prerequisites

Master Data Settings

Activating the functionality

The module Settlement/Commission_Invoicing needs to be assigned to your organisational unit
The module Settlement/Commission_Invoicing needs to be assigned to all roles which shall use this functionality

Master Data > System Master Data > Org. Unit Master Data > Roles > Role Info: select the role here > Modules

Supplier Settings

All suppliers in question need to have the 'Issue Commission Invoices' checkbox ticked
Additionally, they need to have a 'Commission Mode' setting which includes one of the values that contain the word 'Commission'

Master Data > Order Master Data > Supplier > Info

All suppliers in question need to be equipped with Commission Rules

Master Data > Order Master Data > Supplier >Commission Conditions

Accounting / Supplier Settings

Depending on the supplier's Accounting settings, Midoco creates different journal entries when a commission invoice is booked:

Purchase Credit (PC)
- if no 'Commission Receivable' Account ID is present in the supplier settings the resulting Journal entry will be of type 'Purchase Credit' using the 'Supplier Invoice Payable' Account ID of this supplier
Sales Invoice (SI)
- if an Account ID is present in the 'Commission Receivable' field of this supplier, Midoco will create a 'Sales Invoice' Journal entry using this Account ID
- if no 'Commission Receivable' Account ID is present in the supplier settings, but the item in an order is flagged with a settlement type (debit), Midoco will create a 'Sales Invoice' Journal entry using the Account ID

Settlement Types (debit)

If you wish to invoice any third party which could be a commission chasing service provider instead of your supplier, you may create 'Settlement Types (debit)' which need to be assigned to the supplier and which can be added to an item in an order in case this item's commission will be granted by this third party provider.

Settlement types require three steps to be created:

Create an Account ID of type 'Account Receivable (Debit)'

Master Data > Order Master Data > Chart Of Accounts

Create a Settlement Type (debit)

Master Data > Order Master Data > Settlement Types

Assign the Settlement Type and the Account ID to the supplier in question in 'Settlement Accounts'

Master Data > Order Master Data > Supplier > Info > Settlement Accounts

Item Level Settings

Calculated Commission

Only if an item has a calculated commission other than zero, it will be considered in the commission invoicing process. There are multiple ways of getting there:

First option would be to set-up commission rules on supplier level so that Midoco calculates the commission automatically
Alternatively, you may determine the commission by making use of a commission remark, please visit GDS Remarks Documentation to check which remark can be used
If neither of the above options was used, or if you need to amend the calculated commission in an item, you may amend it manually in the item's details using the price calculator

Settlement Type (debit)

Should a third party such as a commission chasing service provider take over commission chasing for an item, you may desire to send the commission invoice to this thrid party also and therefore desire that the Account ID of this third party provider is reflected in the journals for your accounting system. In this case you may flag the item with a 'Settlement Type Debit':

Order > Item > Details > Settlement Type Debit

How does Midoco determine which DR account ID to use?

As there are multiple options to set up account ID´s that have a bearing on the journal entries created by this new functionality, here is the check routine which Midoco uses to determine, which DR account ID to use and how the booking journal entry is created.

Does the item have a Settlement Type Debit assigned to it?
1. if so, the Account DR of the settlement type set on this item's suppliers settlement accounts tab is used. if not, the check routine continues.
Does the supplier of that item carry a 'Commission Receivable' account ID in Order Master Data → Supplier → Info?
1. if so, this account ID is taken
2. Where neither 1. nor 2. is the case, the supplier's account payable set in order master data on the supplier info tab is used.

The Commission Invoice is considered to be a type of Sales Invoice in case an account ID of type Account Receivable is involved. That results in the Journal Type set in an accounting export for this type of invoice (or credit note or related payment) will be considered as a 'Sales' related journal type. For e.g Sage50 Export that would translate into a SI (=Sales Invoice) Journal Type for the Commission Invoice Issue.

In case you opted for No. 3 in the above list, the account ID involved is an account payable and hence the Journal Type can only be considered to be a 'Purchase' related one. For e.g. Sage50 Export that would mean a Commission Invoice gets the Journal Type = PC (Purchase Credit).

How To

As soon as your unit, your suppliers and your bookings were equipped as mentioned in the 'Prerequisites' section above, you may enter the Commission Invoicing functionality via Reconciliation > Commission Invoicing:

Prepare

The first action you take is called 'Prepare' as this is the preparation of all to-be-invoiced commissions.

You need to enter the according search criteria in order to narrow down the results of all to-be-invoiced commissions to only be presented with those, that shall go onto the invoice you wish to create at the time.

Preparation criteria can be a combination of the following:

Creation Date From/To: the dates you fill in here refer to the creation date (booking date) of the items. Should you desire to invoice all commissions of bookings made within a certain period, you will need to use Creation Date From/To as filter criteria
Departure Date From/To: the dates you fill in here refer to the departure date (start travel date) of the items. Should you desire to invoice all commissions of bookings departing within a certain period, you will need to use Departure Date From/To as filter criteria
Return Date From/To: the dates you fill in here refer to the return date (end travel date) of the items. Should you desire to invoice all commissions of bookings returning within a certain period, you will need to use Return Date From/To as filter criteria
Account ID From/To: the account IDs you fill in here refer to the accounts that are present in Chart Of Accounts. Should you desire to invoice only certain commissions where bookings were made for specific accounts, you may use this as filter criteria
Supplier: the supplier ID you fill in here refers to the supplier of the items. Should you desire to send your invoice to a specific supplier stating commissions for bookings made with this supplier, you need to enter a supplier ID
Settlement Type/Account: in case you desire to invoice all commissions for bookings that are flagged with a Settlement Type Debit, because the invoice might need to go to a thrid party such as commission chasing service and not to the supplier, you need to select the according settlement type. Please note: if a booking was flagged with a Settlement Type Debit, you need to select this Settlement Type here, as this overrules the supplier ID and the booking will only be taken into consideration if the according settlement type is selected

After having entered your selection criteria, you need to press the 'Prepare' button. The system will then perform a background search and prepare the according commission invoice(s):

Delete

Should you desire to delete this prepared document because for some reason you do not want to move on with creation of journals or creation of the PDF invoice document, you may press the 'Delete' button (X) on the right and the prepared invoice will disappear from the results table. The commissions that were included in that prepared document will be taken into consideration again in case they match the selected criteria next time you prepare a commission invoice.

Display

In case you want to review or even amend the prepared document in detail, you may double-click the prepared commission invoice line which will take you into the 'Remittance' tab, where you have the option to review or amend the positions which were prepared.

Amend

Once you double-clicked the commission invoice line in question, you will be provided with the details in 'Remittance' tab:

Should you desire to delete items from the prepared invoice you may use the 'Delete' (X) button on the right and after deleting all items in question you will be required to enter the 'Invoice Date' and hit 'Save' in the top section:

Afterwards, please go back into the tab 'Commission Conditions' where you will find the amended Commission Invoice line.

Book / Creation of journal entries

Once you prepared the Commission Invoice, you need to 'Book' it, which literally is the creation of journal entries (accounting).

You will be required to select the commission invoice line and klick on the 'Book Invoice' button:

After the invoice was successfully booked, you will now find a 'Transaction Reference':

In the respective item/order, you will also find the journal entries in 'Booking Journal' as well as entry in 'Supplier Invoice' tab:

Print Invoice

Once the commission invoice has been booked successfully, you will be able to generate the PDF document and send it to the recipient via email.

Please click on the invoice line and push the 'Print Invoice' button:

You will now be provided with a dialogue to select your addressee from CRM. This implies, that the receipient(s) of commission invoices need to have a CRM profile:

Using the spyglass icon you can select the addressee's CRM profile by searching through CRM, you might aswell enter the CRM ID or switch to using the Account (Debtor).

After having selected your recipient, push 'Get Invoice Address' which will retrieve address data from CRM.

Afterwards hit 'OK'.

The Commission Invoice will be despatched by email as PDF attachment to this email in background. It will be directed to the email address which is stored in the recipient's CRM Profile.

Retrieve

Should there be the necessity to retrieve the Commission Invoice Document you previously created, you will find this in the respective CRM profile: