EAME Opera PMS Commissions

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Europe, Africa & Middle East

EAME OPERA PMS COMMISSIONS

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Opera Hotel Edition

EAME Opera Commissions

Neuss, 23rd

October 2006

Author: Linda Vallner


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TABLE OF CONTENTS

COMMISSIONS....... .................................................... .................................................... ................................... 3

1 CONFIGURATION - COMMISSION CODES ............................................... .............................................. 3

2 CONFIGURATION - BANK ACCOUNTS..................................................... .............................................. 6

3 CONFIGURATION - EXPORT FILE ................................................... .................................................... .... 8

4 COMMISSION CALCULATION HIERARCHY.................................................... ..................................... 8

5 COMMISSION PROCESSING BY AGENT / ACCOUNT ................................................. ..................... 11

5.1 COMMISSION PROCESSING - EDIT....................................................... ................................................... 145.2 COMMISSION PROCESSING - OPTIONS ................................................ ................................................... 14

5.3 COMMISSION PROCESSING - NEW ...................................................... ................................................... 165.4 COMMISSION PROCESSING - PAYMENT ............................................... ................................................... 175.5 COMMISSION PROCESSING - REPORTS ............................................... ................................................... 18

6 PAYMENT ACTIVITY ............................................ .................................................... ............................... 18

7 RESEARCH SCREEN.................................................... .................................................... ...................... 19


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COMMISSIONS

The purpose of the Commission module is to offer the hotels the possibility to automatically calculate

commissions on reservations in Opera, and pay these commissions by either generating an export file or byprinting actual bank cheques out of Opera.

Commissions can be calculated for Travel Agent and Source Profiles.

The Commission module never posts or performs revenue, tax or payment transactions in Opera, but servesas a module of calculation only.

The Commission module is linked to a separate license code, OPP_COM.

The possibility to generate a commission export file is linked to another license; this license will depend on the3

rdparty used for commission payment. Currently Opera offers commission export files for five different 3

rd

parties, each requiring their own license code.

1 CONFIGURATION -COMMISSION CODES

The commission calculation rules are set up in the Commission Codes. The hotel can define to calculatecommissions in two different ways:

RESERVATION Calculating commission based on the reservations means that the hotel can either pay afixed amount per stay or per night. In e.g.

Each time the information desk at the airport makes a booking at the hotel, they receive 5

or

Each time the information desk at the airport makes a booking at the hotel, they receive 2for each night that the guest stays at the hotel.

Both of the above examples are unrelated to which rate or how much revenue the guestspends in the hotel, but are flat amounts that will be calculated unconditionally.

REVENUE Calculating commission based on the revenue means that the amount depends on howmuch the guest spend during his stay in the hotel. When setting up a commission codebased on Revenue, it is necessary to define which revenue should be eligible forcommission. In e.g.

The Travel Agent / Source receives 10% of room revenue only

or

The Travel Agent / Source receives 10% of room and F&B revenue

The revenue is defined based on the transaction codes that the hotel has configured. If notransaction codes are attached to the Commission Code, then no commission will becalculated.

Commission codes are configured in Opera Configuration -> Commissions -> Commission Codes.


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Before defining if the commission should be calculated on Reservation or Revenue, fill out the commissioncode, description and sequence fields.

The tax field is parameter driven, and should only be activated for those countries that pay tax on top of thecommission. If this is switched ON, it means that the travel agent will receive their 10% commission + anamount of 18% (as tax is indicated as 18% in the below example).

It is important to recognize that the tax will be added to the payable amount.

If tax is in e.g. only payable for national travel agencies, then two separate commission codes have to becreated, one with the Tax % filled out, and one where the Tax % field is empty.

Note that no tax will ever be posted in Opera, but that the commission module is only calculating theseamounts.

When selecting Revenue as the calculation rule of the Commission code, the transaction codes that shouldgenerate commissions are selected by clicking on New.

The below screen will appear and the user must identify not only the eligible transaction codes, but also if thecommission should be calculated on the NET or GROSS amount. Opera identifies the NET amount by ignoringeverything that is set up in the Generates of the transaction code.

It is also possible tocalculate different

commission amounts during the weekdays and the weekend days. Opera identifies the weekend days as the


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ones which have been defined in the application settings.

Within the same commission code, it is possible to generate different percentages. In e.g. the hotel would like

to give a specific Travel Agent 10% on the room revenue, and 8% on the F&B revenue.

By clicking on New twice, once for selecting room revenue and once for selecting F&B revenue, you can adddifferent percentage amounts for different transaction codes.

When selecting Reservation as the calculation rule of the Commission code, the window for transaction codesis made invisible and only the field for a flat amount is available.

The Hold Status area allows the possibility to set defaults for behavior in the Commission Processing screen.These behaviors will be explained in the Commission Processing section of this document.

The Reservation History Records section in the Commission code set up screen, refers to history records thathave been inserted MANUALLY in Opera, and not historical records generated by Operas end of dayprocedure.

Manual history records are typically only used during a hotel cutover or if there has been a systems outage fora longer period.

Each hotel should always have a Commission code set up for NON COMMISSIONABLE. This code can be setup either based on Reservation or Revenue, and should have NULL values in each field.


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2 CONFIGURATION - BANKACCOUNTS

The Bank Accounts in the Commission module, are not directly linked to banks, but is a way of configuringdifferent payment methods for different types of agents.

In e.g. a hotel may configure a central bank account that is used for international agents, and a local bankaccount that is used to pay local agents.

A commission export file would be linked to the central bank account, and cheque printing would be linked tothe local bank account.

When commission payment should be processed, the accounting clerk can choose to either process chequesor an export file.

Central payment is a very common method of processing commissions. Central payment means that aprocedure similar to the below is followed:

Hotel sets up commission codes -> hotel verifies commission records -> hotel generates commission exportfile -> hotel uploads commission export file to 3

rdparty vendor -> 3

rdparty vendor pays the commission to the

agent -> 3rd

party vendor deducts amount from hotel bank account or sends an invoice to the hotel

Bank Accounts are configured in Opera Configuration -> Commissions -> Bank Accounts.

In the below example we see a hotel that uses the 3rd

party company Pegasus, generating a HCC ascii file.The details like Bank Code, Branch Code, Bank Name, Routing Number and Account Number have to beprovided by the hotel.

When setting up a Bank Account for export file, always select EFT as payment method (Electronic FundTransfer), note that this option will only appear once you have activated the license.

Most central payment companies required that a valid IATA number is present on the Travel Agent / Source in

order to identify the correct receiving agent.

The second bank account is set up for agents that should not receive payment through the 3rd

party vendor.


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As it is time consuming for the hotel to process commissions manually, the bank account for local paymentsare in most cases used as little as possible.

Typically, the local bank account is only used for those agents that do not have an IATA number, or have aspecial agreement with the hotel to receive commissions within a given time frame (the central payment oftenuses 1- 1 month to process commissions after a guests departure)

The payment method for local bank accounts is normally set to Cheque (CHK). When CHK is selected, thestarting number of the first cheque becomes mandatory, and as well the section for Edit Check Number andCheck Stub Lines appears. These fields should be filled out according to the hotels requirements for chequeprinting.

To set up cheque printing in Opera, the sample_checkusd.rdf can be customized to fit the physical bankcheque that the data should be printed on.

The Min. Processing Amt indicates the minimum amount payable to an agent before a cheque is printed. If thepayable amount is smaller than the amount entered here, a cheque will not be printed and the amount takenover to the next time commissions are processed.


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3 CONFIGURATION - EXPORT FILE

The commission export files are hard coded and require no configuration, apart from the hotel details.

Each type of commission export file is described in detail in Opera Help (F1) underEFT File Data.

Below is an example of the HCC ascii file set up screen, which is used in conjunction with Pegasus.

The export file will by default always be placed in d:\micros\opera\export\resort_id. It is not advised to modifythe path in the export file set up screen.

4 COMMISSION CALCULATION HIERARCHY

There are three ways to attach the Commission code; either on the rate code or in two different ways on theTravel Agent / Source Profiles.

The commission code on the rate code will overrule any commission code attached on the Profile.

In e.g.

If a rate code is always non commissionable, the commission code for NON COMMISSIONABLE should beattached on the rate code. This will ensure that this rate code never calculates commission for any agent, nomatter which commission code is attached on the Profile level.

or

If a rate code generates 10% commission to some agents, and 8% to other agents; no commission codeshould be attached to the rate code. By leaving the field empty on the rate code, the commission codes on theProfiles will be used.

In most cases, the commission codes are attached on the Profile level (except for the non commissionable ratecodes, where the commission code for NON COMMISSIONABLEis attached)

To attach a commission code to a Profile, go to the Stats & Info section:


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When attaching a commission code, it is mandatory to first select which bank account the Profile is associatedwith.

In the above example, the commission code for 10% is attached. Opera will now calculate 10% on eachreservation that is attached to this Profile, where the rate code used does not have any other commission codeattached.

One Travel Agent / Source Profile may have different commission percentages, depending on which rate isbooked.

This can be configured in the Profile Options -> Neg. Rates. The rates that are contracted to the agent shouldbe attached and a commission code selected for each rate code.

The commission codes attached here will override the commission code in the Stats & Info screen.

If the user does not attach a commission code in the Neg. Rates screen, the commission code from the Stats& Info screen will be used.


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COMMISSION PROCESSING FLOW:


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5 COMMISSION PROCESSING BYAGENT / ACCOUNT

Commission records are processed, or calculated, for guests that have checked out at least one day prior tothe current business date. The calculation takes place when the user enters the Commission Module viaOpera PMS -> Commissions -> Payment Processing -> By Account / Agent.

Most commonly, By Account is selected. This will allow the user to see all commission records ready to beprocessed by each payment method since the payment method is identified in the bank account.

In this example we have selected the central bank account, and the screen will show all Travel Agents /Sources that are attached to this bank account and have outstanding commission records.

The upper part of the screen lists the agents and the lower screen the commission records that are attached tothe highlighted agent. The Profile button will allow the user to access the Profile of the highlighted record(either the agent or the guest).

Clicking on Send Zero, will offer transfer all non commissionable records for this bank account into commissionhistory and mark them as paid to avoid them being included in the cheque or EFT payment process.

If the user selects NO after clicking on Send Zero, Opera will offer to only send the non commissionable

records for that particular agent to history.


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UPPER WINDOW FIELDS

Travel Agent / Source The name of the agent or source

City The city name of the agent or source profile

IATA No. The IATA number of the agent or source profile

T/S Indicates if the profile is a Travel Agent or a Source

Comm. Code Indicates the commission code that is attached to the profile (Stats & Info)

Commission The total outstanding commission amount for the agent or source

LOWER WINDOW FIELDS

Name Name of the guest from the individual profile

Arrival Arrival date of the reservation

Departure Departure date of the reservation

Status The vast majority of hotels only calculate commission for Checked Outguests. The status field indicates if the guest in still in house or checkedout in most cases this field will always stat Checked Out

Code Which commission code that has been used for this reservation

Comm. Revenue (AED) Indicates the commissionable revenue generated by the reservation inbase currency

Commission Indicates the commission to be paid for this reservation


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H / Hold The H column indicates if a commission records is on Hold. Putting a commission record onHold, means that the record will not be included in the commission payment process. Acommission record can be put on hold for different reasons, in e.g. the receiving agent hasan outstanding credit with the hotel, or there is uncertainty if the rate used should be

commissionable at all. It is also possible to put an entire agent on hold, by using the Holdbutton in the upper window, or by clicking in the H column of the agent. If an agent is onHold, the Hold button will change to Release. Note that if an agent is on Hold, then allcommission records will automatically be put on hold.

A / A/R The A column indicates if the reservation has been checked out to A/R (City Ledger). This isimportant because commission is often deducted from the bill before it is sent to the agent. Ifthis is done, then commission should of course not be processed again for this reservationas that would result in double payment. There is no linkage to the A/R module in terms ofpostings being done etc the A only indicates that the reservation has been checked out toA/R and nothing else. Commission records defined as A will not be included in thecommission payment processing. It is possible to set a commission record as A by eitherclicking in the A column, or by using the AR button on the right hand side.

P / Prepaid The P column indicates that an amount of the commission has been prepaid. It is notpossible to click in this column to activate the P; the X will only appear if an actualprepayment has taken place. Prepayments are done in the Edit section of the commissionscreen and will be explained further down in this document. Commission records defined asP will be included in the commission payment processing, for the amount that remains to bepaid.

The Funds section of the commission screen, indicates the total figures of what is outstanding and how muchis ready to be paid.

Potential The total amount of all outstanding commissions

A/R The total amount of which reservations have been checked out to A/R

On Hold The total amount of which reservations have been put on Hold

To Be Paid The Potential amount minus A/R amount minus On Hold amount = the amount that will beprocessed for payment


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5.1 COMMISSION PROCESSING - EDIT

When highlighting a commission record, the Edit button becomes available.

The Edit screen is shown above and allows the user to easily recalculate the commission if a wrongcommission code has been used (this is done by simply changing the commission code attached) or tomanually modify the commission amount.

Prepaid commission amounts are entered here and are deducted from the outstanding commission amount.

Note that prepaid amounts entered here are not transactions, and not recorded as such in Opera.

Once a prepaid amount has been entered here, the X in the P column on the commission screen will appear.

The Notes section displays all history of the commission records, and allows for review of manually modif iedcommission records.

5.2 COMMISSION PROCESSING - OPTIONS

The Options button becomes available when a commission record is highlighted and allows the user to detacha certain record from the agent, to view the reservation or to go to the folio history.


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It also offers a Folio Detail screen, which is a practical tool for the agent that is reviewing the commissionrecords;

The Folio Detail screen shows all transactions on the guest bill, from all windows, and indicates in the Ccolumn if the transaction was considered commissionable or not. If a package posting has been done on theguests bill, the user may expand the posting and view the details the transactions that it contains.

This screen is very useful for trouble shooting commissions that are supposedly not calculating correctly. Anymistake that has been made in the configuration of the commission code can be identified here.

The screen also shows the total amounts of commissionable and non commissionable revenue, as well as thetotal of the folio and the amount considered prepaid commission.

Opera will consider any posting made in the transaction code defined in the parameter settings DEFAULTPREPAID COMMISSION TRN CODE as prepaid commission.

Note that postings made on a folio in this code, will be considered as real postings in contradiction toreductions that are made in the Edit screen of a commission record.


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5.3 COMMISSION PROCESSING - NEW

The New button on the commission screen allows the user to attach records to the highlighted agent or source.

All checked out guests are eligible to be attached to an agent or source for commission calculation, apart fromrecords where commission has already been paid.

If a reservation is already attached to another agent or source, but commission has not yet been paid, thereservation will be detached from the old agent / source and attached to the new one.

Reservations are selected by clicking on the column to the left and then OK.

Commissions can be paid on No Shows and Cancelled reservations if the parameter settings are set up toallow this.


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5.4 COMMISSION PROCESSING - PAYMENT

Once the user clicks on Pay the commission records will be processed and considered paid.

This action will either trigger the start of cheque printing or the creation of an export file, depending on whichbank account is accessed.

First window that will appear after clicking on Pay is a date range window. This is to allow the user to only paycommissions for guests that have departed in a certain date range, in e.g. the hotel processes commission oneach Tuesday for the previous week (Monday Sunday).

The file generated in this example is an HCC ascii file. Enclosed below a sample of the file:

HCCFileSample.hlk


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5.5 COMMISSION PROCESSING - REPORTS

Commission reports are accessed through the Reports button in the commission screen.

The Commission Pre Payment report should normally be run prior to paying commissions

The Paid Commissions report should normally be run after paying commissions.

6 PAYMENTACTIVITY

The Commissions Payment Activity features allow the hotel to track commission payments (in the form ofcheques and as EFT transfers) including commissions flagged to offset AR and prepaid commissions. It is alsopossible to use Payment Activity features to reconcile commissions payments with bank statements, and,when necessary, reprint commission cheques.

The different statuses that are used in the Payment Activity screen are defined as below:

OUTSTANDING Cheques that have not yet been cashed. The time limit during which the cheque may becashed has not yet expired. (This is the initial status when cheques are issued incommission payment processing.) Cheques having the Cleared status may be returned tothe Outstanding status.

RECONCILED Checks that have been cashed. Select the RECONCILED button to assign the RECONCILEDstatus. When you select a cleared cheque, the OUTSTANDING button becomes available;select this button to return the cheque to the Outstanding status.

UNPRESENTED Select this option to flag cheques that have not been cashed within the period allowed. TheUNPRESENTED button is only available if the cheque is currently in Outstanding status.

VOID Select this option to make a cheque invalid. When you make a cheque void, all transactions

included in the cheque are again made available for commissions payment processing.


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The Details button on the right hand side allows the user to see which agents where included in the export filegeneration. By highlighting one of the agents and clicking on details, the actual commission records willdisplay.

7 RESEARCH SCREEN

The Research screen has been described in section 5.3 of this document and has the same behavior as when

clicking on New in the Commission screen.

In the below example, we can view the details of a reservation on which commission has already been paid.

EAME Opera PMS Commissions

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