Posting Commission-Deducted Payments in City Ledger and AR Account

Some clients deduct a commission before issuing payment. When this happens, the payment received is less than the invoice amount, which can leave an unpaid balance in the AR account if not handled correctly. Since the PMS does not allow negative billing, the recommended solution is to use a custom Commission Fee payment method to account for the difference.

1. Invoice the Full Amount

Post the full invoice to the AR account as usual.

Example: You bill of $1,000 for a stay.

2. Post the Received Payment

When the payment is received, apply it to the invoice using the normal payment method.

Example: A check for $950 (after deducting X%).

3. Post the Commission Fee Payment

Apply the remaining balance (the amount deducted as commission) using the Commission Fee payment method.

This will bring the invoice balance to $0 without overstating income or leaving a false unpaid balance.

If you do not see the “Commission Fee” payment method in your list, please submit a ticket to the VM Support Team. We’ll create the payment method for you, as City Ledger payment types cannot be added by users.

✅ Result

- The invoice shows as fully paid.

- The X% deduction is clearly recorded.

- Your AR aging remains accurate.

- Commissions can be tracked via payment method reports.

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