Agency Commission Revenue

What is Agency Commission Revenue?

Agency Commission Revenue represents YOUR PORTION (commission) of revenue when you create invoices for agency-type subscriptions. In an agency model, you act as an intermediary or reseller - customers pay you, you keep a commission, and remit the rest to the publisher/supplier.

When an agency subscription invoice is created:

1. Cash - Offline Payments increases - Your commission portion received
2. Deferred Revenue increases - Your commission portion owed
3. Taxes increase - Your commission portion of tax liability

This row appears when agency subscription invoices are created and marked as paid.

Note: If you don't use agency subscriptions, this row will always be $0.

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How Agency Subscriptions Work

The Agency Model

In a typical subscription, you keep 100% of the revenue. In an agency subscription:

Customer pays $100 to you
├─ You keep: $20 (20% commission) ← This is what appears in this row
└─ You remit: $80 (80%) to the publisher/supplier

The commission rate is determined by the plan's agency remit rate:

Commission Rate = 1 - Agency Remit Rate

Example:
- Agency Remit Rate: 80% (you pass 80% to publisher)
- Your Commission Rate: 20% (you keep 20%)

Why Use Agency Subscriptions?

Common scenarios:

• Reselling content: You sell access to another publisher's content
• Marketplace model: You operate a platform connecting publishers and subscribers
• Revenue sharing: Partnership where you split subscription revenue
• White-label services: You brand and sell another company's product

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Transactions Included

An invoice appears in "Agency Commission Revenue" when:

1. Created this month: Invoice created date is within the selected month
2. Agency subscription: Subscription type = 'agency'
3. Status is paid: Invoice has been marked as paid
4. Not a gift recipient with $0: Special handling for $0 gift subscriptions
5. Correct account and currency: Matches selected account and currency

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Real-World Examples

Example 1 - Basic Agency Commission:

• Customer subscribes for $1,200 annually
• Your agency remit rate: 80% (you keep 20%)
• Invoice created and paid in October
• Result in October's Report:
  • Cash - Offline Payments: -$240 (your 20% commission)
  • Deferred Revenue: +$240 (your commission portion to be earned)
  • Taxes: -$24 (assuming 10% tax on your commission)

Example 2 - Multiple Agency Invoices:

• 5 agency subscriptions invoiced this month
• Invoice amounts: $100, $150, $200, $250, $300 (total $1,000)
• Agency remit rate: 75% (you keep 25%)
• Result in October's Report:
  • Cash - Offline Payments: -$250 (25% × $1,000)
  • Deferred Revenue: +$237.50 (commission excluding tax)
  • Taxes: -$12.50 (25% of collected taxes)

Example 3 - Mixed Agency Rates:

• Publisher A subscriptions: 80% remit (you keep 20%)
• Publisher B subscriptions: 90% remit (you keep 10%)
• Each calculated separately per plan configuration

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Columns Affected

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Cash - Offline Payments

Cash - Offline Payments shows the commission you receive from agency subscription payments.

Why Negative? This represents income/revenue received (asset increases), shown as negative to match revenue accounting.

Calculation:

Cash = Invoice Total × (1 - Agency Remit Rate)

Example:
- Invoice Total: $1,200
- Agency Remit Rate: 80%
- Cash = $1,200 × (1 - 0.80) = $1,200 × 0.20 = -$240

Note: Agency subscriptions typically use offline payment tracking since the payment flow is different from regular subscriptions.

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Deferred Revenue

Deferred Revenue shows YOUR COMMISSION portion of the service obligation.

Why Positive? You owe this service (liability increases), shown as positive.

Calculation:

Deferred Revenue = (Invoice Total - Tax) × (1 - Agency Remit Rate)

Example:
- Invoice Total: $1,200
- Tax: $120 (10%)
- Invoice Subtotal: $1,080
- Agency Remit Rate: 80%
- Deferred Revenue = $1,080 × (1 - 0.80) = $1,080 × 0.20 = $216

Important: Only YOUR commission portion goes into Deferred Revenue. The 80% you'll remit to the publisher is NOT in your deferred revenue.

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Taxes

Taxes shows YOUR COMMISSION portion of the tax liability.

Why Negative? Tax liability increases, shown as negative.

Calculation:

Taxes = Invoice Tax × (1 - Agency Remit Rate)

Example:
- Invoice Tax: $120
- Agency Remit Rate: 80%
- Taxes = $120 × (1 - 0.80) = $120 × 0.20 = $24

Tax Handling: You may need to remit the full tax amount collected to tax authorities (depending on jurisdiction), but only your commission portion appears in this accounting.

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Agency Commission vs Regular Subscriptions

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Gift Subscriptions with Agency

Agency subscriptions have special handling for gift subscriptions:

Gift Recipient with 100% Coupon:

• Uses invoice_subtotal - tax instead of invoice_total - tax
• Ensures correct commission calculation on actual revenue

Gift Donor:

• Standard commission calculation applies
• Gift donor pays full amount (including gift portion)

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Common Questions

What if I don't use agency subscriptions?

This row will always show $0. Agency subscriptions are only used in specific business models where you act as an intermediary or reseller. Most businesses don't use this feature.

Do I remit the full payment amount or just my commission?

You collect the full payment from the customer, keep your commission (shown in this row), and remit the remaining percentage to the publisher/supplier. For example, if you collect $1,000 and your remit rate is 80%, you keep $200 (shown here) and send $800 to the publisher.

Where does the 80% I remit to publishers appear?

The portion you remit to publishers does NOT appear in your accounting reports - it's essentially a pass-through. Only your commission (the portion you keep) is recorded as your revenue.

How is the agency remit rate set?

The agency remit rate is configured on each plan in your system. Different plans can have different remit rates, allowing you to work with multiple publishers at different commission structures.

Why does this use "Offline Payments" instead of "Online Payments"?

Agency subscription payments are tracked as offline payments due to the different payment flow and reconciliation requirements when acting as an intermediary.

What about refunds for agency subscriptions?

Agency subscription refunds appear in the "Refunds Made" row, with the refund amount proportionally affecting your commission portion based on how much service was delivered.

Do agency subscriptions recognize revenue differently?

Yes! Agency subscriptions have their own recognition row: "Agency Recognized Revenue" (see that page for details). Revenue is recognized proportionally over time, but only for your commission portion.

Can I see which invoices are agency subscriptions?

Yes! If you have the appropriate permissions, there's a download icon next to this row that lets you export detailed transaction data showing all agency subscription invoices.

What if the agency remit rate changes mid-subscription?

Each invoice uses the remit rate configured on the plan at the time the invoice is created. If the plan's remit rate changes, future invoices will use the new rate, but existing invoices remain unchanged.

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Summary

Quick Reference:

What appears here: Your commission portion when agency subscription invoices are created

Who uses this: Businesses acting as intermediaries, resellers, or operating marketplace/revenue-sharing models

Inclusion criteria:

• Invoice created this month
• Subscription type = 'agency'
• Invoice status = paid
• Not a $0 gift recipient
• Correct account and currency

Columns:

• Cash - Offline Payments: Negative (your commission received)
• Deferred Revenue: Positive (your commission service obligation)
• Taxes: Negative (your commission tax liability)

Commission formula: (1 - Agency Remit Rate) × Invoice Amount

Key Point: Only YOUR commission appears in accounting - the portion remitted to publishers is not recorded as your revenue