How are commissions calculated in the Payment Reconciliation report?

How are commissions calculated in the Payment Reconciliation report?

When the system calculates what a commission should be for an event hotel, the amount is determined with the hotel's rebate in mind. Rather than simply take the room rate and determine a commission based on the percentage entered in the profile, the rebate of the hotel is first removed from the rate.

(Rate-Rebate)*Commission%=Commission


For example, for a hotel whose room rate, commission, and rebate are $100, 10%, and $10 respectively, the commission would amount to $9, as the system is removing the rebate of $10 from the rate of $100 before determining the commission. In other words, the math looks like (100-10)*0.1=9.

The math is set up this way because it's the industry standard for hotels to calculate commissions with the rebate being deducted first, rather than paying a rebate on top of the commission.