ADM and ACM at a glance
| ADM (agency debit memo) | ACM (agency credit memo) | |
|---|---|---|
| Effect | Increases what the agency owes the airline | Reduces what the agency owes the airline |
| Common reasons | Fare or tax undercollected, commission overclaimed, booking rule violations, incorrect refunds | Refund adjustments, commission corrections, incentive payouts |
| How it settles | Billed through the BSP statement | Credited through the BSP statement |
| Your action | Check, dispute if wrong, then record and decide on recovery | Check, record and pass on to the customer where due |
Why airlines raise ADMs
- The fare or taxes collected were lower than the fare rules required
- Commission was claimed at a higher rate than agreed
- Booking practices broke the airline’s policy, such as duplicate or speculative bookings
- A refund was processed for more than the ticket allowed
- A waiver was used without the right authorisation
How to handle an ADM
- Review it in BSPlinkRead the reason and the ticket it relates to.
- Check against the original ticketCompare the fare, taxes, commission and booking history with the airline’s claim.
- Dispute if it is wrongRaise a dispute in BSPlink with evidence before the dispute period ends.
- Record it if it standsPost the ADM against the original ticket, so the cost sits with the sale that caused it.
- Decide on recoveryIf the customer caused the difference, raise a debit note to recover it. Otherwise book it as a cost.
Accounting for memos
An ADM increases the amount payable to the airline. Its other side is either a cost to the agency or a receivable from the customer, depending on who bears it. An ACM reduces the amount payable to the airline, and is either income to the agency or a credit owed to the customer.
The most important habit is to record each memo against the original ticket. That keeps profitability by booking accurate, and it lets BSP reconciliation match the memo to the statement line.
ADMs and ACMs in SYSTACC
SYSTACC records airline debit and credit memos against the original ticket, so an ADM never floats without a source. Finance can see the sale, the customer to recover from and the amount still open with the airline, and BSP reconciliation picks up the memo from the same record.
