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Pre and Post Discount Setting

 

Commissions for products and services are based on the net or gross revenue. This can be enabled in settings by following these steps:

  • Go to Business Setup > Settings
  • Scroll down to the Staff section
  • There are now 2 settings which are off by default, calculate service commissions post-discount and calculate product commissions post-discount.

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When a predefined discount or BOGO is applied to a ticket, you can determine whether the percentage commission your staff members receive from selling products and services is calculated pre-discount (gross revenue) or post-discount (net revenue).  This setting can be configured per discount code so it can vary by promotion. Here are the steps:

  • Go to Marketing > Promotions
  • Select “Create Promotion” button
  • Scroll down to “Calculate Staff Commissions”
  • Expand drop down menu
  • Option is shown to calculate staff commissions pre-discount or post-discount


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Note*: The promotion post/pre-discount setting overrides the company setting for all staff compensation setup EXCEPT tiers.  Tiered commissions are always based on the company setting. It ignores the promotion setting.

 

Examples:

Company setting is set to:

  • Calculate service commissions post-discount? = YES
  • Calculate product commissions post-discount? = YES

In Promotions, staff commission is set to be calculated on pre-discount (gross revenue)

Discount amount - 5%

Service price = $50

Product price = $30

1) Molly has tiered commission by revenue setup for products and services as:

  • Above  $0   per pay cycle then pay  10  %
  • Above  $50   per pay cycle then pay 20  % 

2)  Terry has straight commission setup as:

  • 10 % of services & products revenue

Ticket for Molly

ticket_1.png

Ticket for Terry

 

ticket_2.png

Let’s look at the compensation report to see how the data is displayed and calculated.

Data for Molly - Revenue and commission is calculated post discount (based on company setting)

  • Service revenue = $47.50 (net revenue) 
  • Service commission - 10 % x $47.50 = $4.75
  • Product revenue = $28.50 (net revenue)
  • Product commission - 10 % x $28.50 = $2.85

Data for Terry - Revenue is shown post-discount (based on company setting) however, commission is calculated pre-discount (based on promotion setting)

  • Service revenue = $47.50 (net revenue) 
  • Service commission - 10 % x $50 = $5
  • Product revenue = $28.50 (net revenue)
  • Product commission - 10 % x $30 = $3

 

Report_2.png


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