The Dual Commission System is able to give different commission amounts when a service is used and when a service is purchased. When using the Dual Commission System a Commission Used Based On column and a Commission Purchased Based On column will appear on tickets. Dual Commission payroll income can be set almost identically to Single Commission payroll income, except for a few minor differences.
1. Click Use dual commission system under the Commission System section.
2. See the Single Commission Income Overview section above for instructions on employee income setup.
3. For each service you will need to set up the Service Commission When Used and Service Commission When Purchased.
4. Click OK to exit out of the Payroll Configuration screen. 5. Go to the Service screen.
6. Edit the service and click the Commission tab.
7. Click the Commission When Purchased tab and choose one of the following:
l None: no commission is given to the employee when the service is purchased
l Fixed currency amount of: the commission issued to the employee selling the service is in the
form of a lump sum. The value used in Payroll Configuration is ignored. This exception will apply to any employee selling the service
l Fixed percentage amount of: the commission issued to the employee selling the service is a
percent of the Commission Purchased Based On column. The value used in Payroll Configuration is ignored. This exception will apply to any employee selling the service
l Based on Payroll Configuration screen: the commission issued to the employee selling the
service is based on the percent amount found in Payroll Configuration, either a straight percentage or based on a commission table. To make exceptions to the Payroll Configuration, click the Exceptions button and add any employees exempt from the normal routine. If you do an exception, the commission issued to the employee selling the service is based on an exception value, either a lump sum or a percentage amount. If an exception is chosen, the value found in
Payroll Configuration is ignored. Different employees can have different exception values for the same service
8. Click the Commission When Used tab and choose one of the following:
l None: no commission is given to the employee when the service is performed
l Fixed currency amount: the commission issued to the employee performing the service is in the
form of a lump sum minus the backbar amount. The value used in Payroll Configuration is ignored. This exception will apply to any employee performing the service
l Fixed percentage amount: the commission issued to the employee performing the service is a
percent of the Commission Used Based On column minus the backbar amount. The value used in Payroll Configuration is ignored. This exception will apply to any employee performing the service
l Based on Payroll Configuration screen: the commission issued to the employee performing the
service is based on the percent amount found in Payroll Configuration, either a straight percentage or based on a commission table. To make exceptions to the Payroll Configuration, click the Exceptions button and add any employees exempt from the normal routine. If you do an
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exception, the commission issued to the employee performing the service is based on an exception value, either a lump sum or a percentage amount minus the backbar amount. If an exception is chosen, the value found in Payroll Configuration is ignored. With this option selected, different employees can have different exception values for the same service
9. You may choose to make exceptions to the amount of backbar for each employee. A standard backbar amount can be defined and exceptions created as needed per employee. This backbar amount is subtracted from the Commission Used Based On amount when determining employee commission. This backbar amount is subtracted only when a service is used and not when purchased. The total backbar for a ticket can be calculated as: Backbar times Qty Used.
10. You may choose to make exceptions to the bonus paid for a service for each employee. A standard bonus can be defined and exceptions created as needed per employee. A bonus is a lump sum awarded to an employee for the selling of a service. It is independent of commission. There is no bonus for the performing of the service. The total bonus for a ticket can be calculated as: Bonus times
Qty Prch.
11. Click Save to exit.
Dual Commission System Examples: when using the Dual Commission System, there are five configurable entities for each service.
1. Price: a standard price can be defined and exceptions created as needed per employee. If you change the service price, this new price will apply to all future tickets created after the point in time in which you changed the service price. The change is not retroactive.
2. Backbar: a standard backbar amount can be defined and exceptions created as needed per employee. This backbar amount is subtracted from the Commission When Used amount when determining employee commission. This backbar amount is subtracted only when a service is used and not when purchased. The total backbar for a service on a ticket is calculated as: Backbar times Qty Used.
3. Bonus: a standard bonus can be defined and exceptions created as needed per employee. A bonus is a lump sum awarded to an employee for the selling of a service. It is independent of commission. There is no bonus for performing a service. The total bonus for a ticket is calculated as: Bonus times Qty Prch.
4. Commission When Purchased (CWP): this commission is issued when a service is sold by an employee. If you change the commission amount, it will apply to all tickets and is retroactive. 5. Commission When Used (CWU): this commission is issued when a service is performed by an
employee. If you change the commission amount, it will apply to all tickets and is retroactive.
There are five configurable entities. Three entities have either a Standard or Exception value. Two entities can either have a None value, some type of exception value, or be based on the Payroll Configuration
screen. There are seventy-two possible configurations for any employee using the Dual Commission System
for each service.
Figure 8: Different configurations using the Dual Commission System
Configurable
Item Price Backbar Bonus
Commission When
Purchased Commission When Used Employee A Standard/Exception Standard/Exception Standard/Exception None/Exception/Payroll Configuration None/Exception/Payroll Configuration
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Example 1:
1. Susan Smith’s commission percentage will be 20%.
2. We will be looking at SERVICE A configured for Susan Smith. Here are its characteristics:
l Price: $60.00, no exceptions for Susan
l Backbar: $15.00, exception of $20.00 for Susan l Bonus: $10.00, exception of $15.00 for Susan l Commission When Purchased (CWP): None
l Commission When Used (CWU): 20%, based on Payroll Configuration
3. Susan performs and sells SERVICE A and closes Ticket #1027.
4. When payroll is run the Commission Details screen is displayed, see Figure 9. 5. Susan’s commission total taken from Ticket #1027 should be:
CWP = ($60.00)*0% + $15.00 = $15.00 CWU = ($60.00 – ($20.00 * 1))*20% = $8.00 Commission Total = CWU + CWP = $23.00
l Ticket #1027's information is as follows:
¡ Commission When Used Based On: $60.00 ¡ Commission When Purchased Based On: $60.00 ¡ Backbar: $20.00
¡ Bonus: $15.00 ¡ CWP: 0%
¡ CWU: 20%, from Payroll Configuration
6. As can be seen below, this total is correct. The bonus amount of $15.00 is applied when SERVICE A is purchased and not used. The backbar amount of $20.00 is applied when SERVICE A is used and not purchased.
The first row of Figure 9 details the commission results for Commission When Purchased from Ticket #1027. Since None was selected for SERVICE A, this row is accurate.
The second row of Figure 9 details the commission results for Commission When Used from Ticket #1027. Since Based on Payroll Configuration screen was selected for SERVICE A, this row is accurate as well.
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Figure 9: Commission Details screen for Example 1
Example 2:
1. Susan Smith’s commission percentage will remain at 20%.
2. We will again be looking at SERVICE A configured for Susan Smith. Here are its characteristics:
l Price: $60.00, no exceptions for Susan
l Backbar: $15.00, exception of $20.00 for Susan l Bonus: $10.00, exception of $15.00 for Susan
l Commission When Purchased: a generic exception of 10% applied to any employee selling the
service. This 10% exception will apply to all tickets created and is retroactive
l Commission When Used: 20%, based on Payroll Configuration
3. Susan sells and performs SERVICE A and Ticket #1032 is closed.
4. When payroll is run the Commission Details screen is displayed, see Figure 10. This payroll assumes Ticket #1027 has already been closed.
5. Susan’s commission total taken from Ticket #’s 1027 from Example 1, and 1032 is calculated below: CWP = ($60.00 + $60.00)*10% + ($15.00 + $15.00) = $42.00
CWU = ($60.00 – ($20.00*1) + $60.00 – ($20.00*1))*20% = $16.00
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Commission Total = CWP + CWU = $58.00 Or,
l Ticket #1027's information is below:
¡ Commission When Used Based On: $60.00 ¡ Commission When Purchased Based On: $60.00 ¡ Backbar: $20.00
¡ Bonus: $15.00
¡ CWP: 10%, exception for SERVICE A purchase ¡ CWU: 20%, from Payroll Configuration
l Ticket #1032's information is below:
¡ Commission When Used Based On: $60.00 ¡ Commission When Purchased Based On: $60.00 ¡ Backbar: $20.00
¡ Bonus: $15.00
¡ CWP: 10%, exception for SERVICE A purchase ¡ CWU: 20%, from Payroll Configuration
6. As can be seen below, this total is correct. The second and fourth rows of Figure 10 detail the commission results for Commission When Purchased for Ticket #’s 1027 and 1032. Since an
Exception of 10% was selected for SERVICE A, these rows are accurate. This exception is applied to all SERVICE A services purchased for this payroll period. The first and third rows of Figure 10 detail the commission results for Commission When Used for Ticket #’s 1027 and 1032. Since Based on Payroll Configuration, or 20%, was selected for SERVICE A, these rows are accurate as well.
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Figure 10: Commission Details screen for Example 2
Example 3:
1. Susan Smith’s commission percentage will remain at 20%.
2. We will again be looking at SERVICE A configured for Susan Smith. Here are its characteristics:
l Price: $60.00, exception of $80.00 for Susan. This $80.00 exception will apply to all tickets
created after and including Ticket #1033 and is not retroactive. In other words, all tickets created after the point in time the exception was created will have a SERVICE A price exception of
$80.00 for Susan
l Backbar: $15.00, exception of $20.00 for Susan l Bonus: $10.00, exception of $15.00 for Susan
l Commission When Purchased: a generic exception of 10% applied to any employee selling the
service. This 10% exception will apply to all tickets created and is retroactive
l Commission When Used: a specific exception of 50% applied only when Susan performs the
service. This 50% exception will apply to all tickets created and is retroactive 3. Susan sells and performs SERVICE A and Ticket #1033 is closed.
4. Payroll is run and the Commission Details screen is displayed, see Figure 11. This payroll assumes that Ticket #’s 1027 and 1032 have already been closed.
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5. Susan’s commission total taken from Ticket #’s 1027 from Example 1, 1032 from Example 2, and 1033 is calculated below:
CWP = ($60.00 + $60.00 + $80.00)*10% + ($15.00 + $15.00 + $15.00) = $65.00
CWU = ($60.00 – ($20.00*1) + $60.00 – ($20.00*1) + $80.00 – ($20.00*1))*50% = $70.00 Commission Total = CWP + CWU = $135.00
Or,
l Ticket #1027's information is below:
¡ Commission When Used Based On: $60.00 ¡ Commission When Purchased Based On: $60.00 ¡ Backbar: $20.00
¡ Bonus: $15.00
¡ CWP: 10%, exception for SERVICE A purchase ¡ CWU: 50%, exception for SERVICE A use
l Ticket #1032's information is below:
¡ Commission When Used Based On: $60.00 ¡ Commission When Purchased Based On: $60.00 ¡ Backbar: $20.00
¡ Bonus: $15.00
¡ CWP: 10%, exception for SERVICE A purchase ¡ CWU: 50%, exception for SERVICE A use
l Ticket #1033's information is below:
¡ Commission When Used Based On: $80.00 ¡ Commission When Purchased Based On: $80.00 ¡ Backbar: $20.00
¡ Bonus: $15.00
¡ CWP: 10%, exception for SERVICE A purchase ¡ CWU: 50%, exception for SERVICE A use
6. As can be seen below, this total is correct. The first, third, and fifth rows of Figure 11 detail the commission results for Commission When Purchased for Ticket #’s 1027, 1032 and 1033. Since an Exception of 10% was selected for SERVICE A, these rows are accurate. The second, fourth, and sixth rows of Figure 11 detail the commission results for Commission When Used for Ticket #’s 1027, 1032,
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and 1033. Since an Exception of 50% was selected for SERVICE A, these rows are accurate as well. These exceptions are applied to all SERVICE A services purchased for this payroll period. The price for each individual SERVICE A is based on when the exceptions for price were added: $60.00 and $80.00.
Figure 11: Commission Details screen for Example 3
Example 4:
1. Susan Smith’s commission percentage will remain at 20%.
2. We will again be looking at SERVICE A configured for Susan Smith. Here are its characteristics:
l Price: $60.00, exception of $80.00 for Susan. This $80.00 exception will apply to all tickets
created after and including Ticket #1033 from Example 3. This change is not retroactive.
l Backbar: $15.00, exception of $20.00 for Susan l Bonus: $10.00, exception of $15.00 for Susan
l Commission When Purchased: a generic exception of 10% applied to any employee selling the
service
l Commission When Used: a specific exception of 50% applied only when Susan performs the
service
3. A client purchases (5) of SERVICE A and uses (1) for the day. This type of procedure is typically called
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a pre-paid service.
4. Susan sells (5) of SERVICE A and performs (1) of SERVICE A and closes Ticket #1034.
5. When payroll is run the Commission Details screen is displayed, see Figure 12. This payroll assumes that Ticket #’s 1027, 1033 and 1034 have already been closed.
6. Susan’s commission total taken from Ticket #’s 1027 from Example 1, 1032 from Example 2, 1033 from Example 3, and 1034 is calculated below:
CWP = ($60.00 + $60.00 + $80.00 + (5*$80.00))*10% + ($15.00 + $15.00 + $15.00 + (5*$15.00)) = $180.00
CWU = ($60.00 – ($20.00 * 1) + $60.00 – ($20.00 * 1) + $80.00 – ($20.00 * 1) + $80.00 – ($20.00 * 1)) *50% = $100.00
Commission Total = CWP + CWU = $280.00 Or,
l Ticket #1027's information is below:
¡ Commission When Used Based On: $60.00 ¡ Commission When Purchased Based On: $60.00 ¡ Backbar: $20.00
¡ Bonus: $15.00
¡ CWP: 10%, exception for SERVICE A purchase ¡ CWU: 50%, exception for SERVICE A use
l Ticket #1032's information is below:
¡ Commission When Used Based On: $60.00 ¡ Commission When Purchased Based On: $60.00 ¡ Backbar: $20.00
¡ Bonus: $15.00
¡ CWP: 10%, exception for SERVICE A purchase ¡ CWU: 50%, exception for SERVICE A use
l Ticket #1033's information is below:
¡ Commission When Used Based On: $80.00 ¡ Commission When Purchased Based On: $80.00 ¡ Backbar: $20.00
¡ Bonus: $15.00
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¡ CWS: 10%, exception for SERVICE A purchase ¡ CWU: 50%, exception for SEVICE A use
l Ticket #1034's information is below:
¡ Commission When Used Based On: $80.00 ¡ Commission When Purchased Based On: $400.00 ¡ Backbar: $20.00
¡ Bonus: $75.00
¡ CWP: 10%, exception for SERVICE A purchase ¡ CWU: 50%, exception for SERVICE A use
7. As can be seen below, this total is correct. On this payroll, Susan has sold a total of (8) SERVICE A's and performed a total of (4) SERVICE A's. For Ticket #1034 containing the pre-paid services, Susan’s
Commission When Purchased is based on the number of SERVICE A’s sold, or (5). Her Commission When Used is based on the number of SERVICE A’s performed (1).
Figure 12: Commission Details screen for Example 4
Summary:
1. There are seventy-two possible configurations for each employee for each service when using the
Chapter 11: Payroll
Dual Commission System. The configurable entities are: price, backbar, bonus, commission when purchased, and commission when used.
2. A generic exception will apply to any employee selling or performing the service.
3. A specific exception will apply only to the employee selling or performing the service for which the exception was defined.
4. Changing the service price for an employee IS NOT a retroactive change.
5. Changing the commission when purchased for an employee IS a retroactive change. 6. Changing the commission when used for an employee IS a retroactive change.
7. A retroactive change will affect the amounts of an entity for all tickets included in a payroll period. 8. A non-retroactive change will not affect the amounts of an entity for all tickets included in a payroll
period.
9. A bonus is awarded only when a service is sold.
10. A backbar amount is subtracted from the service price only when a service is performed.