How do I deduct cost of service from commission?

This article explains how to deduct the cost of service from staff commission

When creating/editing a Service, you can set a Cost Price on that service under the Advanced section. This Cost Price can then be deducted from an appointment total before commission is calculated for that appointment.

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Configuring Your Reports

After you have set the Cost Price for all relevant Services, go to Manager>Reports, open the Staff report view, then click the Cog Wheelmceclip1.png to enable the Deduct cost of service setting.

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You can also use the Deduct cost of service after commission setting to deduct the service Cost Price after calculation commission.

If you are using reports from the Additional Reports section, remember to check the Deduct Cost of Service checkbox before running your Staff Commission Detail or Staff Commission Overview reports.

Again, you can use the Deduct Cost of Service from Commission Total option to deduct the service Cost Price after calculating commission.

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Note: Cost of service is deducted on all services, courses sessions, special offers, and packages.

Deducting Cost vs. Deducting Cost After Commission/from Commission Total

Choosing only the Deduct Cost of Service will mean that your cost of service will be deducted first before your commission % is calculated.

Choosing Deduct cost of service after commission (or Deduct Cost from Commission total) will mean that your commission % is calculated first, and then your service cost will be deducted from that total.

Example Scenario

The Service Price is 200
Service Cost is 10
Commission earned is 10%

Deduct Cost of Service will be calculated as 200 - 10 = 190, then 10% of 190 = commission total of 19.

Deduct cost of service after commission (or Deduct Cost from Commission total) will be calculated as 10% of 200 = 20, then 20 - 10 = commission total of 10.

To learn more about areas like this in your Phorest system, enroll in our Staff Setup And Access Levels course in Phorest Academy - online, on-demand, and on-the-go learning for busy salon professionals.

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