What is a net remittance?

What is a net remittance?

• A. The agency's total cash sales minus total commissions
• B. The agency's total cash plus total commissions
• C. The total refunds
• D. The total gross sales

Answer: (A)

Net remittance is the amount the agency remits after accounting for commissions. In practice, you take the agency’s total cash sales for the period and subtract the total commissions paid on those sales. The result is the net remittance to be sent to the airline/ARC. For example, if cash sales total $10,000 and commissions total $1,200, the net remittance is $8,800. The other options aren’t correct because they either add rather than subtract, or refer to unrelated figures like refunds or gross sales (which are not net of deductions).

Net remittance is the amount the agency remits after accounting for commissions. In practice, you take the agency’s total cash sales for the period and subtract the total commissions paid on those sales. The result is the net remittance to be sent to the airline/ARC.

For example, if cash sales total $10,000 and commissions total $1,200, the net remittance is $8,800. The other options aren’t correct because they either add rather than subtract, or refer to unrelated figures like refunds or gross sales (which are not net of deductions).