How to Set Up a Commission Structure for Products

This article explains how to set up a commission structure for products in Pabau.

Step 1: Access the Commissions Feature

To begin, log into your Pabau account and navigate to the left sidebar menu. Click on "Team", then select "Commissions". This action will take you to the Commission Sheets listing page.

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Here, you can click on "New Commission Sheet" in the top right corner to create a new sheet. If you wish to edit an existing sheet, click on the three dots icon next to the respective sheet and select "Edit".

Step 2: Navigate to the Commissions Tab

Upon creating a new commission sheet or editing an existing one, a modal will appear featuring two main tabs: Commissions and Users.

The Commissions tab contains five sub-tabs corresponding to specific item categories: Services, Products, Packages, Memberships, and Gift Vouchers. In this case, switch to the Products sub-tab.

Step 3: Configure the Products Sub-Tab

In the "Default commission type" section, you can select "Fixed" or "Tiered" rate.

• Fixed: You can choose for the fixed rate to be a percentage or flat rate per item sold, such as $0.20 per item or if it's a percentage e.g. 1% of the item price. To read more about setting up a fixed commissions rate, review this article. 
• Tiered Commission: A varying percentage based on the total amount sold, like 1% for sales between $0-$100 and 1.5% for sales between $100-$1000. To read more about setting up a tiered commissions rate, review this article.

In the "Customize commissions by product" section you can override the default commission settings for individual products. You can adjust the commission rate to be higher, lower, or set it to zero.

In the "Calculations tab" you have three options you can tick or untick:

• Deduct discounts:

  Deductions for discounts determine how commissions are calculated.

  • When disabled, commissions are based on the item's full price before any discounts.
  • When enabled, commissions are calculated on the discounted price (the price after the discount is applied).

• Deduct taxes

  Deduct Taxes determines how commissions are calculated in relation to item tax:

  • When enabled, commissions are based on the unit price multiplied by quantity, excluding tax.

    • For countries like the UK, where tax is included in the unit price, the taxable portion is deducted. For example:
      Unit price = $10, tax rate = 20%. Commission is calculated on $8.33 ($10 - $1.67 tax).
    • For countries like the USA, where tax is added on top, commissions are calculated on the pre-tax price. For example:
      Unit price = $10, tax rate = 20%. Commission is based on $10.

  • When disabled, commissions are calculated based on the price including tax:

    • UK: Unit price ($10) x quantity.
    • USA: Unit price ($10) x quantity + tax.

  You can test this setup in POS to see how it works for your country. Make sure your tax settings align with your region's tax rules under Business Details.

• Deduct product cost 

  This is a setting specifically for calculating commissions on product sales in Pabau. Here's how it works:

  • Cost Price: This is the amount your clinic pays the supplier for the product.
  • Retail Price: This is the price your clinic charges clients.

  These values are set under the Pricing tab when editing a product.

  • Enabled: The cost price is subtracted from the retail price before calculating the commission.

• • Disabled: Commissions are calculated on the full retail price.

Step 4: Assign Staff Members to Commission Sheets

After you've configured the commissions tab, you can assign the staff members to the commission sheet. This tab will show a list of all the staff members that you have, and that are active - only the ones that are not part of another commission sheet will be clickable.

To learn more about this topic, review this article.

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Step 5: Activate and Save the Commission Settings

After configuring the commission rates and users, ensure that the Active/Inactive toggle at the top of the tab is set to Active. This setting ensures that the commission rules you've defined are applied to the sales transactions.

Once everything is set up correctly, click on "Create" (for a new commission sheet) or "Edit" (if modifying an existing sheet) in the top right corner to save your settings.

By following these steps, you can effectively set up commissions for products in Pabau, allowing you to reward your staff based on their sales performance.