A Channel is a way of identifying sources of business and setting default commission rates to these sources.
You can establish commission percentages to be associated with a channel; the system will then always apply a commission to any bookings made through the configured channel. This is done by associating a channel with an enquiry / booking.
A Company can be associated to multiple Channels, however each Channel can only have one Company associated to it.
Adding a Channel
1 - Go to the Admin menu, hover over 'Channel Settings', and select 'Channels'.
2 - Here you will be shown a list of the pre-existing Channels. Click 'Add Channel'.
3 - Fill in the required fields and click the red commissionable slider so that it turns green and presents more fields.
4 - Fill out the newly presented fields (descriptions of the terminology are below this section). Click 'Save Channel'.
1 - Go to the CRM menu and select 'Companies'.
2 - Here you will be shown a list of the pre-existing Companies. Click 'Add Company'.
3 - Name your new Company and then select the 'Company Category' - n.b. only a Booking Agent can have a Channel (and indeed, a Booking Agent MUST have a Channel) so select Booking Agent here.
4 - This will automatically bring up fields that are mandatory for creating a Channel, namely:
- Channel Name, which will be set to the Company Name (you can change this if you wish).
- Commission Basis - select Gross or Net, depending on how you want the commission to be calculated.
- Commission Rate - set the default Commission Rate (the User can modify this on a booking-by-booking basis).
5 - Finally, click 'Save Company'.
i Channel Name
- This is the name of the Channel for identification during the booking process and for reporting.
ii Booking Type
- The Booking Type you want the Channel to apply to. For more information on Booking Types please see Booking Type Configuration.
- This is the Booking Account that the Channel is to be associated with. It is also the account that the commission invoices will be associated with.
iv Commission Basis
- This means that the commission percentage is taken on the Gross Booking Value (i.e. with VAT), or Net Booking Value (i.e. without VAT).
- For example, if the Gross Booking Value was £120 (£100 + VAT) and the commission rate was 10%, then the Gross commission would be £12 and the Net commission would be £10.
v Commission Rate
- This is the commission rate associated with the Channel by default. This can be overridden at the time of the booking by setting the 'Comm. rate' during the enquiry / booking.
vi Available to All
- If the Channel is marked as 'Available to All' then it will be available to be associated with any Booking Account. This is useful for scenarios where you are loading bookings manually for website bookings, rather than the booking being automatically associated with a Channel.
vii Deducted at Source
- If set, then the system will take the commission value off of the accommodation price and set it as commission. Essentially this has the effect of reducing the revenue associated with a booking.
viii VAT Profile
- The VAT Profile dictates the tax approach to use in regards to commission. This means you can use different approaches for charging commission, depending on how the associated agent charges commission.
- For example, Air BnB do not charge VAT on their commission as they are overseas, so you would use a VAT Profile that does not charge VAT over the length of the stay.
- For more information see VAT Profiles.
ix Commission Invoice Type
The Invoice Type affects where and how the commission is located in your chart of accounts - n.b. please discuss this with your accountant or book-keeper.
- Sales Credit - this will generate a Sales Credit to the Sales Ledger, effectively reducing your revenue in the chart of accounts.
- Purchase Invoice - this will generate a Purchase Invoice in the Purchase Ledger, effectively representing your commission as a direct cost in the chart of accounts.
Using a Channel
1 - The usage of a Channel comes into play when creating a new Booking Enquiry.
2 - Initially, it is just the default Channel that is visible, prior to adding any Booking Contact details.
3 - When adding a Booking Contact, if the contact is associated to a Company that is a Booking Agent (and therefore has a channel) the Channel field will allow for further selection and the Commission Rate field will be visible.
4 - As you can see, John Wayne has been associated to multiple Channels, including Wayne Enterprises, which we know is a Booking Agent.
5 - By selecting Wayne Enterprises as the Channel, the default Commission Rate has also been entered. You can change the value of the commission rate if you wish.
6 - It is also worth noting is that Booking Account and Billing Account have become type ahead searches (rather than drop downs) to allow for maximum flexibility.