How to Set Up a Commission Structure for Services

This article explains how to set up a commission structure for services 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 Services sub-tab.

Step 3: Configure the Services 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 service. 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 service" section you can override the default commission settings for individual services. 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.

  • Enabled: Commissions are calculated based on the discounted price (i.e., the sale price after applying the discount).

  • Disabled: Commissions are calculated on the original price before the discount is applied.

• Deduct taxes

  • Enabled: Commissions are calculated based on the sale price excluding taxes.

  • Disabled: Commissions are calculated on the full sale price, including taxes.

• Earn commissions on fully paid invoices

  • Enabled: Commissions are awarded when the invoice is fully paid. This means the commission is calculated and applied on the date the final payment is made to settle the invoice.
  • Disabled: Commissions are awarded on the date the invoice is created, regardless of whether it has been fully paid.
• Deduct consumables cost
  
  • Enabled: The commission calculation will subtract the total cost of all consumables associated with the service. This ensures commissions are based on the service's profit margin after accounting for consumable costs.
  • Disabled: The commission will be calculated on the full service price, including the cost of consumables.

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 services in Pabau.