If your agency receives tax on supplier commission — such as HST in Canada — you can record tax amounts separately so agents know exactly which portion of their payout is commission and which is tax to remit.
Tern does not calculate tax automatically. You enter the exact tax amount from each supplier invoice, and it is applied using the agent's standard commission split.
Which approach to use
There are two ways to separate tax from commission in Tern.
Option A: Add a second commission line on the booking. Use this for quick entry when agents do not need the tax amount labeled on their payout statement.
Option B: Add a labeled tax adjustment to a supplier statement. Use this when agents need to see the tax amount clearly identified on their payout statement. This is the recommended approach for agencies where agents must track and remit tax independently.
The key difference: Option A adds an unlabeled second line that agents must interpret by amount. Option B adds a named line (for example, "HST") that appears explicitly labeled on the agent's payout statement.
Option A: Add a second commission line on the booking
Open the booking and go to the Commission Received section.
Enter the net commission amount (total received minus tax) in the first line.
Click the + button to add a second commission line. The new line pre-fills with the same split as the first.
Enter the tax amount on the new line and save.
Note: Neither line is labeled on the agent's payout statement. Both appear under the same booking name. Agents must infer which line is tax based on the amount. If your agents need a labeled tax line for reporting or remittance purposes, use Option B instead.
Option B: Add a labeled tax adjustment to a supplier statement
Step 1: Create the supplier statement
Go to Commission, then select the Statements tab.
Click "Add statement" and enter the supplier name, payment type, date received, and total amount received.
Click Save.
Step 2: Add bookings at the net commission amount
Open the statement you just created.
Find each booking in the list and click the + button to add it to the statement. The commission amount pre-fills from the booking's expected commission.
Click the booking row to open its details, then edit the commission received amount to reflect net commission only — that is, the total received minus the tax amount.
Repeat for each booking on the statement.
Step 3: Add the tax as a named adjustment
Click "Add adjustment" within the statement.
Fill in the adjustment details:
Name: Enter a label that will appear on the agent's payout statement, such as "HST."
Type: Select Tax.
Amount: Enter the exact tax amount from the supplier invoice.
Pay to: Select the agent.
Split: Enter the agent's standard commission percentage.
Optionally, add a note with the booking confirmation number for easier reconciliation later.
Click Save.
The adjustment appears as a separate labeled line on the agent's payout statement. You're all set!
Common questions
Does the tax amount get split the same way as commission?
Yes. Both commission lines and adjustments apply the agent's commission split percentage. The agent receives their percentage of the tax amount, and the agency retains its portion.
What if the tax amount varies by supplier or invoice?
Enter the exact tax amount from each invoice. Because Tern does not calculate tax automatically, you have full control over the amounts entered.
Can I add a tax adjustment without a supplier statement?
Yes. Go to Commission > Payouts, then click Add adjustment. This creates the same type of adjustment, but it is not linked to a specific supplier statement, which can make invoice-level reconciliation harder to track. For most agencies reconciling tax per invoice, the supplier statement approach above is easier to audit.