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Why isn't my management commission including the channel commission?

If your management commission is calculating on a base that excludes the channel commission and the math looks too low, the cause is usually a pre-deduct setting on the channel commission custom fee — not a calculation bug.

Overview

If your management commission is calculating on a base that excludes the channel commission (e.g. VRBO commission), the math will look lower than expected on every reservation that has a channel commission applied. The most common cause is not a calculation bug — it is a configuration setting on the channel commission custom fee.

Where to check

  1. Open Custom Fees and find your channel commission fee. For VRBO bookings this is typically the VRBO Commission custom fee.

  2. Click into the fee and select the Settings tab.

  3. Look for the row labelled "Use following fee for pre-deduct".

What this setting does

When "Use following fee for pre-deduct" is set to Management Commission, the platform pre-deducts the channel commission from the management commission base. The management commission is then calculated on (Owner Income lines − channel commission) rather than on Owner Income lines alone.

In plain language: the channel commission is being subtracted from the rent before the management commission percentage is applied — which is exactly the math the platform was told to do, just not the math you may have intended.

How to resolve

If you want the channel commission INCLUDED in the management commission base (most common)

  1. On the channel commission custom fee, turn off the pre-deduct (or remove "Management Commission" from the dropdown).

  2. Save the change.

  3. Run the Management Commission preview on a sample reservation to confirm the new math.

  4. Refresh the affected owner statements — the management commission lines will recalculate based on the new base.

If you want the channel commission EXCLUDED from the management commission base

The pre-deduct is configured correctly. The lower management commission is the platform working as configured — no change needed.

Validation

After changing the setting, refresh the affected owner statements. The management commission lines will recalculate based on the new base. If you have already manually adjusted any statements before identifying this issue, those manual adjustments will need to be reversed once the recalculation runs cleanly.

Related articles

  • Management commissions

  • Commissionable Revenue on Owner Statements

  • Fees and Commissions overview

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