If you are under TPI and want to reconcile commission in Tern before TPI Back Office launches, this article walks through the split settings that make the math come out right.
Video walkthrough: The video walks through an example TPI payout statement, explains why the percentages on a TPI statement differ from the splits you set in Tern, and shows how to use the workbook attached at the end of this article to find the right split for each agent and set it up in your Tern account.
Download the Workbook here - tpi_statement_converter__8_.xlsx
Do You Need to Do This?
Reconciling commission in Tern before TPI Back Office launches is completely optional. After launch, TPI will send you pre-reconciled statements and you will not need to do any of the setup in this article.
Nothing in this article affects your one-way sync from TPI. Your bookings continue to sync whether or not you set up splits.
Set up your splits now only if one of these applies to you:
You are a TPI main advisor at a split lower than 100%, you have associates, and you want to use Tern to pay your associates over the next few months.
You want accurate expected and received commission reports in Tern over the next few months.
If neither applies, you can skip this article.
Before We Jump In
TPI and Tern use different words for the same things:
Associate (TPI) = Agent (Tern). An advisor who books under your agency. In Tern, these are the people listed under Back Office > Team & Billing.
Main advisor (TPI) = Agency owner (Tern). You, the owner of the Tern agency account.
Host standard split. Your split with TPI. If TPI pays you 90% of the commission it receives, your host standard split is 90%.
Your standard split. Your own split within your agency. As the owner, set this to 100%.
Agent standard split. The percentage of what your agency receives that each agent keeps on their bookings. This percentage is higher than the percentage on your TPI statement. The next section explains why.
Why the Percentages Look Different
The Rcvd Comm column on your TPI statement is the amount the supplier paid TPI. It is not the amount TPI deposited to you. Every agent share on the TPI statement is calculated from that larger supplier amount.
Tern works from the amount TPI deposited to you. When you add a TPI statement in Tern, you enter the amount that hit your bank account, and Tern calculates agent payouts from that. Because the starting amount is smaller, the agent percentage in Tern has to be larger to land on the same dollar amount.
Example with a 90% TPI split:
The supplier pays TPI $1,000 on an associate's booking.
TPI keeps 10% and deposits $900 to you.
On the TPI statement, the associate's share shows as 54% of $1,000, which is $540.
In Tern, that associate's standard split is 60% of $900, which is also $540.
The associate receives the same dollars either way. Only the percentage changes. This is why you cannot copy percentages from your TPI statement into Tern. The workbook attached to this article does the conversion for you.
Step 1: Set Up Your Host Standard Split
Do this whether you have associates or you are an agency of one.
Go to Back Office > Team & Billing.
Click the Set Up Now button at the top of the Team & Billing tab.
This button only appears if your host split has not been set up yet. If your host split is already set up, you will see that split at the top of the Team & Billing tab instead of the button. In that case, confirm the percentage is correct and skip to Step 2.Enter your split with TPI.
If TPI pays you 90%, enter 90%. Use your actual TPI split.Set the effective date to when your current TPI split started.
Backdate it so it covers every booking you plan to reconcile. If your split has changed over time, you can add each split with its own effective date. The most recent split is the one that matters most.
Step 2: Set Your Own Standard Split to 100%
Do this whether you have associates or you are an agency of one.
Go to Back Office > Team & Billing.
Click the three dots next to your own name in the team list.
Select View Agent Details.
Open the Commission tab.
Set your Standard Split to 100%.
Set the effective date to when you started with TPI, then save.
As the owner, you keep 100% of what your agency receives on your own bookings. TPI's share has already been taken out before the deposit reaches you.
Step 3: Find Your Associates' Splits Using the Workbook
Steps 3 through 5 are for agency owners with associates only.
Open the TPI Statement Converter workbook and go to the Converter tab.
Enter your TPI split in the yellow cell B2.
This must match the host standard split you entered in Step 1.Open a recent TPI payout statement and copy the booking rows from the first tab.
Copy only the booking rows. Do not copy the header row or the totals row.Paste the rows into the Converter tab at cell A6, columns A through M.
Use Paste Special > Values so the formulas in the other columns stay intact. Delete the grey example rows first.Open the Tern Setup tab.
Every agent on the statement appears with the standard split to enter in Tern. Nothing to type. Your own name shows 100%.
Step 4: Set a Default Split for Your Team (Optional)
If all or most of your associates are at the same split, set it once here instead of agent by agent.
Go to Back Office > Commission Rules.
Set the default standard split for your agency team.
Use the percentage from the Tern Setup tab in the workbook, not the percentage from your TPI statement.
Step 5: Set Individual Agent Splits
If an associate is at a different split from your team default, or you skipped Step 4, set each agent individually.
Go to Back Office > Team & Billing.
Click the three dots next to the agent's name and select View Agent Details.
Open the Commission tab.
Enter the standard split shown for that agent on the Tern Setup tab of the workbook.
In the example above, an associate at 54% on the TPI statement is set to 60% in Tern.Set the effective date, then save.
Repeat for each agent. Your associates do not need to set anything on their end. As the agency owner, you set splits for them.
Summary
Once these splits are in place, Tern has everything it needs to calculate payouts from the amount TPI deposits to you. Your host standard split tells Tern what TPI keeps, your own standard split of 100% keeps your bookings whole, and each associate's standard split comes from the Tern Setup tab of the workbook rather than from the TPI statement. Keep the workbook handy. Each time a new TPI statement arrives, paste it into the Converter tab and use the Tern: Amount received column as your source of truth for the statement total and for each booking when you reconcile. Remember, this setup is only needed until TPI Back Office launches. After that, TPI will send you pre-reconciled statements and none of this will be necessary. If a scenario on your statement does not fit what the workbook covers, contact Tern support.