In this article, you will learn how to create service charges in Pabau.
Service Charges are customizable fees that can be added to your services to cover costs like processing fees or surcharges. With transparent pricing displayed upfront, your patients will know exactly what they’re being charged. This feature simplifies fee management, offering you flexibility with both fixed and percentage-based options. Additionally, automatic calculations ensure faster payments and reduce errors, streamlining the process for your clinic.
NOTE: Before setting up service charges, please consult local laws to ensure compliance. In the UK and EU, it is prohibited to pass payment processing fees to clients. In some cases, a service charge may be applied as a surcharge for specific reasons beyond the standard cost.
Step 1: Navigate to Services
To begin, log into your Pabau account using your credentials. Once logged in, navigate to the "Setup" section in the left sidebar menu. Within the "Setup" section, click on "Services" under the Services category.
Step 2: Navigate to ''Service Charges''
Once you're in the Services section, you'll see Service Charges at the top, next to the service categories. Click on Service Charges directly to begin setting up and managing your charges.
NOTE: If you want to find out more about creating services and categories, please refer to this article.
Step 3: Create a Service Charge
To create a new service charge, click on the ''Create button'' in the top right corner. This will open the ''Create Service Charge'' modal where you can set up all the necessary details for your charge.
The modal is divided into two tabs: General and Pricing.
General
In the General tab, you'll define key details for your service charge:
- Name: Give your service charge a clear and identifiable name.
- Description: Provide a short description to explain what the charge covers.
- Category: Choose a category to group your service charges with similar services. This helps you organize charges more efficiently.
Pricing
In the Pricing tab, you’ll set the financial aspects of the charge:
- Auto Apply: Decide if this charge should be applied automatically during checkout.
- Amount Type: Choose whether the charge will be a fixed amount or a percentage of the total service price.
- VAT Rate: Select whether VAT should be applied to the charge, and set the appropriate VAT rate. (e.g., 20% or 5%, depending on your region’s requirements).
Step 4: Save the Changes
Once you've configured all the details, click the ''Save'' button in the top right corner to apply your changes.
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 added according to local rules.
NOTE: When applying service charges, VAT will be calculated based on local tax regulations. In some regions, the VAT may be included in the service charge, while in others, it will be added on top of the service charge.
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.
By following these steps, you'll be able to easily create and manage service charges.
For more guides, 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. It offers in-depth video tutorials and lessons, offering a holistic learning experience that can equip you with the essential skills for achieving success with Pabau.