> For the complete documentation index, see [llms.txt](https://developer.siteminder.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://developer.siteminder.com/channels-plus-api/additional-resources/commercial/invoicing-gross-vs-net.md).

# Invoicing: Gross vs. Net

## How It Works: Key Differences

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This information specifically relates to the [Lock Reservation](/channels-plus-api/reference/lock-reservation.md) endpoint.
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### **Gross invoicing**

Involves a separate payment of commission owed usually on a monthly billing cycle. This is the current implementation of commission charging on Channels Plus, where:

1. Guest makes a booking on the partner’s site.
2. Partner either passes the guests' credit card or a virtual credit card with 100% of the booking funds available.
3. Hotel charges the card to collect the total reservation amount.
4. Once a month, the hotel will receive an invoice from Channels Plus for the total commission owed on all reservations that checked out in the previous month.
5. Hotel pays invoice.
6. SiteMinder pays the partner their share of commission owed.

### **Net invoicing**

Involves an upfront collection of commission owed by the partner. This means there’s no billing process for the customer. The implementation of net invoicing could look like this:

1. Guest makes a booking on the partner’s site.
2. Partner collects 100% of the booking funds from the guest.
3. Partner passes the booking funds net of the total commission owed (partner + sm) via a virtual credit.
4. Hotel charges the card to collect the net of commission amount.
5. Once a month, the hotel will receive a summary of commission collected.
6. SiteMinder invoices the partner for SM share of commission.

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