Two very different kinds of income, one line item
When a hotel pays an agency 12% commission on a booking, and the agency separately charges the customer a AED 50 service fee, both amounts often land in the same generic "sales income" account. They shouldn't — one is paid by the supplier after the fact, often in a different currency and on a different schedule; the other is charged directly and collected up front.
Why the blend hides useful information
Blending the two makes it impossible to answer a genuinely useful question: is this product line profitable because of what we charge the customer, or because of what the supplier pays us? Those have very different implications — a booking type that relies heavily on supplier commission is vulnerable if that supplier ever cuts commission rates, in a way a service-fee-driven booking isn't.
Separating them changes pricing decisions
Once commission and service fees are tracked separately, an agency can make much sharper pricing decisions — raising service fees on low-commission product lines, or being more competitive on price where supplier commission already carries most of the margin.
How Muhasib separates them
Commission receivable is its own income category in Muhasib, distinct from customer-facing service fees — so profitability reporting reflects where the margin is actually coming from, not a blended number that hides it.
