Refunds and credit memos affect the carrier remittance by doing what?

• A. Increasing the net cash
• B. Reducing the funds remitted to the carrier
• C. Increasing the commission
• D. Adding taxes

Answer: (B)

Refunds and credit memos reduce the amount the agency remits to the carrier. When a ticket is refunded, the revenue that was previously payable to the carrier is reversed, so the remittance to the carrier is decreased. Credit memos serve as credits against future settlements, further lowering the current remittance. In short, these adjustments shrink the funds sent to the carrier, not increase them (and they aren’t about taxes or increasing commissions).