Appendix C - Implementation of markup strategy

Implementation of markup strategy

1. Mark up Overview

   The objective of the Mark Up enhancement is to provide a very simple way in which Agencies can record a Mark Up on any Travel Services Trip Line. This Mark Up is then apportioned by the system to Additional Commission and Recovery of Credit Card Fees, Admin Fees and other Recoveries as required. In order to achieve this the Agency will need to create “Mark Up Strategies” within Codes Maintenance to determine how the Mark Up is to be apportioned. Once one or more “Mark Up Strategies” have been created the Travel Consultant merely selects the “Mark Up Strategies” and records the Mark Up. The Mark Up can either be recorded by entering the actual Mark Up value or by entering the total Cost to Client of the Trip Line.

The following steps are required to set up the system ready for use in Travel Services:

1. General Ledger Maintenance
   
   1. Remainder Commission

      A general Ledger Account needs to be used to hold the additional commission collected from the Mark Up. Although it would be possible to use the existing commission account (1010) or any other account it is recommended that a new Account be Created for this purpose. For example create a new GL Account 1012 titled “Remaining Mark Up Commission”. Set “Account Class” to Normal, “Account Type” to Profit & Loss, “Account View” to Everyone and “Category of Account” to Income. Use the default settings for all other fields and Save the details.

   2. Credit Card Portion

      A general Ledger Account needs to be used to hold the Credit Card Fees Recovered from the Mark Up. Although it would be possible to use the existing account, it is recommended that a new Account be Created for this purpose. For example create a new GL Account 2281 titled “Recovery of Credit Card Fees”. Set “Account Class” to Normal, “Account Type” to Profit & Loss, “Account View” to Everyone and “Category of Account” to Expense. Use the default settings for all other fields and Save the details.

   3. Administration Fee Portion

      A general Ledger Account needs to be used to hold the Administration Fees Recovered from the Mark Up. Although it would be possible to use the existing account, it is recommended that a new Account be Created for this purpose. For example create a new GL Account 2021 titled “Recovery of Administration Fees”. Set “Account Class” to Normal, “Account Type” to Profit & Loss, “Account View” to Everyone and “Category of Account” to Expense. Use the default settings for all other fields and Save the details.

      Other Recovery accounts can be set up if the User requires, although the above are the only anticipated recoveries at this stage.

2. Codes Maintenance
   
   1. Create Type of Sale

      It is possible to use a new Type of Sale to specifically record the additional commission collected from Mark Ups. If a separate Type of Sale is not used then the Type of Sale from Travel Services Trip Lines will be used. It is each Users choice as to whether or not to set up this new Type of Sale. If it is decided to create this new Type of Sale then use Codes Maintenance to create this (Suggested code of “MU”). Set Government Tax Applies to No. GST will be handled automatically by the system depending on the Type of Sale of the Travel Services Trip Line. Set the ‘Type of Sale’ Reporting to Domestic.

   2. Create Mark Up Strategy

      Mark Up Strategies are created in Codes Maintenance under the Other Tab within the Description Code. Any number of Strategies can be created although it is anticipated that only 2 will be required at present. The first is for Air Bookings made through BSP where an Administration recovery should be collected and the second for all other Mark Ups where no Administration recovery is required. Some Agencies may wish to create additional Strategies to allow flexibility with Credit Card Recoveries. If this is required I would suggest they contact the Travelog Helpdesk.

      The standard Air Strategy should be set with a suggested code of MUBSP, description of “Mark Up on Air Travel Booked Through BSP” or similar, Decription Type of “Mark Up Strategy”, Default Type of Sale set if required and the Remainder Comm Acc set to “1012” (using the example above). The Markup Elements are set as follow:

      Acc Code “2281” (using the example above) Recovery of CC Fees has an Apportion Method of “Percentage of Gross + Markup” (select from drop down box) with a Value/Perc of 3.3%. (Amex Diners) or 1.5% (Other Cards) Acc Code “2021” (using the example above) Recovery of Admin has an Apportion Method of “Percentage of Gross + Markup” (select from drop down box) with a Value/Perc of 0.25%.

      The standard Other Strategy should be set with a suggested code of MUOTH, description of “Mark Up on Other Travel” or similar, Decription Type of “Mark Up Strategy”, Default Type of Sale set if required and the Remainder Comm Acc set to “1012” (using the example above). The Markup Elements are set as follow:

      Acc Code “2281” (using the example above) Recovery of CC Fees has an Apportion Method of “Percentage of Gross + Markup” (select from drop down box) with a Value/Perc of 3.3%.

      An example of the Codes Maintenance Mark Up Strategy is on the following page with additional suggestions.

      The below is an example of the Codes Maintenance Mark-Up Strategy

      OTHER SAMPLE MARKUP STRATEGIES YOU COULD CREATE IN YOUR OWN OFFICE:

      Mark-up on Nett Fares or Supplier Rates (100% Mark-up Commission):

      Mark-up on Gross for Payments to you made on Client Credit Cards (eg; Amex / Diners):

      You are now ready to start using the new Mark Up feature.

3. Travel Services Mark Up Entry
   
   1. Mark Up Entry

      In each Travel Services Trip Information Window the Consultant has the option to enter a Mark Up Strategy and then record a Mark Up Value or a Cost to Client Value. The entry requirements have been kept to a minimum and very simple. An example is attached for the Air Pricing Record. This is the only additional is automatic.

   2. Mark Up Update

      Following Pay Supplier (or Quick Booking Completion) the relevant BSP, Non BSP and Cheque List and Updates will process the Mark Up value according to the Strategy determined. The additional Commission will be added to the Commission recorded against the Trip.