--- title: How to Adjust Commission Calculation Settings description: In this article, we’ll cover how commission is calculated in Pabau, specifically focusing on the basis for calculating commission. --- [Skip to content](https://support.pabau.com/en/pabau2/how-to-adjust-commission-calculation-settings#main-content) [![pabau logo white](https://support.pabau.com/hubfs/pabau%20logo%20white.svg)](https://support.pabau.com/en/pabau2?hsLang=en) Open main navigation Close main navigation - [Get Support](https://pabau.com/support-center/) [Get Support](https://pabau.com/support-center/) Pabau Knowledge Base - There are no suggestions because the search field is empty. 1. [Pabau Knowledge Base](https://support.pabau.com/en/pabau2?hsLang=en) 2. [Team](https://support.pabau.com/en/pabau2/team?hsLang=en) 3. [Commissions](https://support.pabau.com/en/pabau2/team?hsLang=en#commissions) # How to Adjust Commission Calculation Settings ## In this article, we’ll cover how commission is calculated in Pabau, specifically focusing on the basis for calculating commission. TheCommissions feature in Pabau allows you to accurately calculate and allocate commissions to staff members based on the items they sell. This flexible feature enables you to set up different types of commission structures and customize how commissions are awarded. #### Why Use the Commissions Feature? Commissions motivate staff to sell more by directly rewarding them for their sales efforts. For instance, if a staff member sells two items worth $100 each with a 5% commission rate, they earn $10. Customers see only the total amount they paid on their invoices, without any mention of the staff member’s commission. For more details on how to set up and manage commissions, please read the relevant article. #### Understanding Commission Calculation in Pabau When calculating commission in Pabau, it's essential to understand the factors influencing the final price of an item, as the commission is based on this final price. The final price is determined by several key components: - **Unit Price:** The base price of the item. - **Quantity:** The number of items sold. - **Discount:** Any reductions applied to the item’s price. - **Tax:** The amount added to the item’s price, which varies based on whether tax is included in the price (as in the UK and most European countries) or added separately (as in the USA and Canada). #### Options for Commission Calculation Different commission calculation options will be available based on the item category, with specific settings for Services, Products, Packages, and Gift Vouchers. These options include: **Deduct Discounts**: Choose if you want the commission calculated on the item price before or after applying discounts. **Deduct Taxes**: Decide if the commission should be based on the item price with or without tax. **Earn Commissions on Fully Paid Invoices**: Only applicable to services. Select if commissions are awarded on the day when the invoice is fully paid (when the final payment is made), or on the day the invoice was created. **Deduct Product Cost**: For products, decide if the commission should be calculated on the retail price minus the cost price, or on the retail price. The product cost price is defined in the Pricing tab when creating or editing the product in the Products setup. ![How to Adjust Commission Calculation Settings 1](https://support.pabau.com/hs-fs/hubfs/Team%20category/How%20to%20Adjust%20Commission%20Calculation%20Settings%201.png?width=581&height=215&name=How%20to%20Adjust%20Commission%20Calculation%20Settings%201.png) **Deduct Service Cost**: Applicable only for services and packages. The service cost is defined in the Pricing tab when creating or editing the service in the [Services](https://app.pabau.com/setup/services) setup. ![How to Adjust Commission Calculation Settings 2](https://support.pabau.com/hs-fs/hubfs/Team%20category/How%20to%20Adjust%20Commission%20Calculation%20Settings%202.png?width=622&height=252&name=How%20to%20Adjust%20Commission%20Calculation%20Settings%202.png) **Additional Notes:** - You can enable both "Deduct Discounts" and "Deduct Taxes" simultaneously. - If the cost price exceeds the retail price, the commission will be zero when the **Deduct Product Cost** setting is enabled. - These checkbox settings apply only to the selected subtab. For example, enabling "Deduct Taxes" in the Services tab does not affect the Products tab. Adjust settings separately for products and services as needed. By understanding and configuring these options correctly, you can ensure that commissions are calculated in a way that aligns with your business goals and rewards your staff appropriately. --- For [more guides](https://support.pabau.com/en/pabau2?hsLang=en), refer to related articles below, select additional guides, or use the search bar at the top of the page. These guides will help you get the most out of your Pabau account. Additionally, to help you fully utilize and understand your Pabau account, we recommend exploring additional guides and resources offered at the [Pabau Academy](http://academy.pabau.com/courses). 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