How to Apply a Service Charge

In this article, you will learn how to apply service charges when checking out appointments or creating a sale manually in the Point of Sale system.

Service charges can be applied either automatically or manually, depending on your settings, ensuring the correct charge is added at the right time.

Step 1: Apply the Service Charge in the Point of Sale

Access the Point of Sale system to apply a service charge. Whether the appointment was booked via the calendar or created manually, the process for applying the charge is the same.

 If you've configured the service charge to apply automatically, it will be added to the sale as soon as you access the Point of Sale system — regardless of whether the appointment was booked through the calendar or manually. You'll see the service charge appear under the service name on the right sidebar. No further action is needed.

If you've set the service charge to be applied manually, you'll need to add it yourself. To do so, click on the three dots on the right-hand side of the POS screen, select “Service Charge” from the options, and choose the appropriate service charge category.

After choosing the service charge category, apply it to the sale. If you need to make a one-off change to the service charge, click on the service charge listed and adjust the amount or percentage as needed. The updated charge will then appear under the service name on the right sidebar, just as it does with automatic application.

Step 2: Finalize the Invoice 

After the service charge is added in the POS, click "Continue" to raise the invoice. Once the invoice is opened, you will see the applied service charge listed along with the other details.

Understanding Service Charge Calculations

When a service charge is applied, here’s how it affects the invoice totals:

Items: No change to the item prices themselves.

Subtotal: The subtotal will now include the service charges, showing the sum of item prices plus the service charge.

Discounts: No change to how discounts are applied.

Tips: No change to the tip section.

Tax: The tax amount will include both the service charge and item taxes.

Total: The final total will include the service charges, along with items, tax, and other fees.

How Service Charges are Calculated

Percentage-Based Service Charges:
If the service charge is a percentage, it is calculated based on the total price of the services in the cart, after any discounts but before taxes.

For example, if a client has services priced at $20, $30, and $50 (totaling $100) and there's a 10% service charge, the charge will be $10 (10% of $100). If applicable, VAT (tax) will be included in the total price, or added on top of it, according to local tax regulations.

Fixed Amount-Based Service Charges:
If the charge is a fixed amount (e.g., $5), it will be added directly to the invoice, regardless of the prices of the services.

Now that you know how to apply service charges, you can easily manage your sales and appointments while ensuring your invoices are accurate and complete.