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.
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
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 for Terry
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
