Travel agent commission tracking and supplier payables
Record who is owed what on every ticket the day you sell it, then pay from a due list. A commission nobody wrote down is a commission someone argues about later.
Updated
Money moves both ways in an agency. Customers owe you. You owe the airline or consolidator for the ticket. You may also owe a referrer, a sub agent or a salesperson a commission. The first is your receivable, the last two are payables, and if you only track the first, you will overpay your own profit.
Three different things people call commission
| Kind | Who pays whom | How it appears |
|---|---|---|
| Referrer or sub agent commission | You pay the person who brought the customer | A cost of the sale, owed until you pay it |
| Airline or supplier commission | The supplier pays you, or you net it off the price you pay them | A lower cost, or a receivable from the supplier |
| Staff commission | You pay your own salesperson | A cost of the sale or of payroll, owed monthly |
Pick which ones you have and track each separately. Do not blend them in one column called "commission".
What to record on every ticket
- Date, booking reference and passenger.
- Selling price and its currency.
- Supplier, net cost to you and its currency (the supplier payable).
- Whether the supplier was paid in full, in part, or not yet.
- The referrer or sub agent, if any, and the commission rule (fixed amount or percent of the sale).
- The commission amount, worked out when the sale is saved, in the currency you will pay it.
- Whether the customer paid, and how much is outstanding.
- Refunds or reissues later, as separate entries.
Worked example (sample data)
Three tickets sold in October by Sample Travel Co. Referrer Sam brought two of them at 5 percent of the selling price.
| Ticket | Sold for | Supplier cost | Referrer | Commission | Profit before expenses |
|---|---|---|---|---|---|
| T-101 | 440.00 | 395.00 | Sam, 5% | 22.00 | 23.00 |
| T-102 | 620.00 | 560.00 | Sam, 5% | 31.00 | 29.00 |
| T-103 | 310.00 | 280.00 | none | 0.00 | 30.00 |
| Total | 1,370.00 | 1,235.00 | 53.00 | 82.00 |
At month end the due list shows three lines. Supplier payable USD 1,235.00 (less anything already paid). Referrer Sam is owed USD 53.00. Customers still owe whatever they have not paid. If Sam is paid USD 30.00 on the 20th, the list now shows Sam owed USD 23.00 and a payment entry with its date. Nothing is rewritten; a payment is added.
The due list
Once a week, open a list of everything you owe: suppliers first (they often have deadlines), then referrers and sub agents. Sort by due date or by age. For each line show the person, the amount per currency, the oldest unpaid item and the tickets it covers.
- Pay suppliers by their deadline, not by who calls loudest.
- Pay commissions on a fixed day (for example the 10th for the previous month) so everyone knows.
- Pay a commission only after the customer has paid, if that is your rule. Write the rule in your terms so nobody is surprised.
- When a ticket is refunded, reduce or reverse the commission and say so to the referrer.
Monthly commission report
- Per referrer: tickets sold, total sales, commission earned, commission paid, commission still due.
- Per supplier: purchases, payments, balance owed.
- Per currency, never mixed.
- Profit after commissions, by month.
Referrer: Sam Month: October 2026 Currency: USD T-101 DXB-KHI sale 440.00 commission 22.00 T-102 DXB-ISB sale 620.00 commission 31.00 Earned 53.00 Paid on 20 Oct 30.00 Still due 23.00
Setting the rules with referrers and sub agents
- Agree the rate before the first sale: a fixed amount per ticket, or a percent of the selling price or of your profit. Say which.
- Say when it becomes payable: when the customer pays, when the ticket is issued, or at a fixed day each month.
- Say what happens on a refund or a void.
- Agree the currency of the commission, and the rate if it differs from the sale.
- Send the referrer their monthly statement so they can check it. Disputes are cheaper to settle with paper.
Mistakes to avoid
- Working out commission at month end from memory. Work it out when the sale is saved.
- Not recording the supplier payable until the airline sends a reminder.
- Mixing currencies: a USD sale with an AED commission needs a decided rate and a note.
- Paying a commission on a ticket that was later refunded.
- Agreeing percentages by phone with no written record.
In a spreadsheet and in Parvaz
In a spreadsheet, give each ticket row columns for supplier, cost, referrer, commission rule, commission and paid amount, then filter by referrer. It works for a handful of referrers. In Parvaz, a sale can carry a referrer and a commission (fixed or percent). A "Commissions due" screen and report show what each referrer is owed, and you pay them from there. A purchase from a supplier records what you owe and what you paid. The "Whom we owe" report lists suppliers and referrers. Refunds are separate entries on the sale. See travel agency accounting software and the pricing page.
Questions and answers
When should I record a commission?
When the sale is saved. The amount is known then, and you will not forget it at month end.
Should I pay commission before the customer pays me?
That is your rule to set. Many agencies pay only after the customer has paid. Write it down and tell the referrer.
What is a supplier payable?
Money you owe a supplier, such as an airline, consolidator or hotel, for tickets or services you already sold.
How do I handle a commission when a ticket is refunded?
Reverse or reduce it in a separate entry and tell the referrer. Check your agreement with them first.