Configure Service Commissions based on a Percentage of Revenue

You can configure Zenoti such that employees earn commission on performing a service based on the revenue they generate in a given pay period.

Important: You can view this setting only if the setting Commission type (all items) for item level definition is set to Revenue from Admin > Org > Settings > Employee section settings.

Zenoti first considers the configurations at the item level (in this case, the service level). If there are no commission-related configurations at the item (service) level, then Zenoti looks at the employee and job levels for commission-related configurations and then awards commissions accordingly.
Read:
Employee Commissions - Levels of Configuration and Impacts
Configure Service Commissions at the Service Level

Important: In Zenoti, revenue for a service is price paid for a service excluding taxes and tips. Read: Sales, Collection, and Revenue in Zenoti 

This article covers the following sections: 

• Before You Begin
• Configuring Service Commissions based on a percentage of revenue
• Worked Example and Impact on Employee Reports 

Before You Begin

• Ensure that the employee has the appropriate job (Therapist) and can perform the service. Read: Create Jobs
• Ensure the invoice is closed. Read: Employee Commissions - Before You Begin
• Ensure the option Revenue is selected for the setting Commission type (all items) for item level definition from Admin > Org > Settings > Employee section settings.

To configure service commissions based on a percentage of revenue: 

1. Ensure that you are at the Organization level. 
2. Click Admin > Resources > Services. 
3. Click Add.
   The Create Service page appears. The commission-related settings appear in the General tab. 
4. In the General tab, for Commissions option, select Yes. 
5. For Commission Adjustment, specify a number in percentage.
   Example: If you specify 50% here, it means employees will get half the amount of commission. Similarly, if you specify 100%, it means employees will get the full amount, and 200% means, employees will get double the amount of commission. 
6. For Commission Type, select percentage of revenue
   Enter the percentage of revenue you wish to give as commission.
   Example: If you specify 10 here, it means employees earn 10% as commission on revenue earned for the given service. This also assumes you have specified 100% in the Commission Adjustment field. Note: In Zenoti, revenue for a service is price paid for a service excluding taxes and tips. Read: Sales, Collection, and Revenue in Zenoti 
7. [Optional] Enter a percentage for Support Staff Gratuity (an enforced tip included in the invoice and given to staff who assist in the discharge of a service). 
8. Click Next.
   The Price tab opens. 
9. Enter price details such as sales price and any taxes that may apply to the service.
10. [Optional] Enter or select details for Products, Resources, Custom, Catalog, Variants, Related, and Add-Ons.
11. Click Finish.

Worked Example and Impact on Employee Reports 

Consider the following:

• Cost of service: $650
• Service tax: $130 
• GST: $130
• Service charge: $32
• Tips: $65
• Commission Adjustment: 100%
• Total revenue earned: $877
• Commission is percentage of revenue: 10%
• Commission earned by employee on performing the service for one guest: $65
  
  Note: In Zenoti, revenue for a service is price paid for a service excluding taxes and tips. Price of the service is $650. 10% of $650 is $65.

If this is the scenario, the Employee Payroll Summary Report, Employee Payroll Details Report, and Employee Commissions Report display details of this commission. 

Best Practise: To view all the columns of the report, always export these reports - the UI shows fewer columns.  

Tip: To view accurate commission-related figures, always generate the Employee Payroll Summary Report first and then generate the Employee Commission Report. 

Read:
Configure Service Commissions at the Individual Employee Level
Configure Service Commissions at the Job Level