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Configure Slab Revenue Calculations

Businesses can decide whether refunded invoices should affect slab revenue calculations. This choice ensures that commission calculations align with the organization's preferences without introducing discrepancies. This new feature enables businesses to: 

  • Exclude refunded invoice revenue from slab revenue calculations.

  • Use the new Refund Details section in the Employee-Wise Details Excel report for detailed insights into refunded transactions.

Scenario: Commission slabs and refund impact

  • A spa generates $10,000 in service revenue during a pay period.

  • $2,000 worth of services are refunded.

  • Refunds reduce the net revenue to $8,000, used to determine the commission slab.

Commission slabs:

  • Up to $5,000: 5%

  • $5,001 to $8,000: 8%

  • Above $8,000: 10%

Calculation steps:

  1. Net Revenue = Service Revenue - Refunds = $10,000 - $2,000 = $8,000.

  2. Applicable Slab: With a net revenue of $8,000, the 8% commission slab applies.

  3. Commission Amount = Net Revenue × Slab Percentage = $8,000 × 8% = $640.

Commission reversal for refunds

  • If an invoice worth $1,000 was previously processed with a 10% commission, and it is refunded, the refunded commission is:

Refunded Commission = Refund Amount × Original Commission Percentage = $1,000 × 10% = $100.

  • This ensures the reversed commission is calculated accurately and separately from the current pay-period commissions.

    Follow these steps to enable refund exclusions:

    1. Navigate to the Employee section in center-level configurations.

    2. Go to the Payroll and Commissions section and select the Commissions tab.

    3. Enable the Exclude refunds from slab revenue calculations setting.

    4. Click Save to apply the settings.

      exclude_refunds_from_slab.png

Impacts and considerations

  • Once enabled, the Employee-Wise Details Excel report will reflect this change, ensuring refunded invoice revenue does not affect slab revenue calculations.

  • Adjusting this setting allows businesses to align calculations with their policies and ensures accurate and fair payroll processing by properly accounting for refunds.

  • This refund exclusion and exclusion flexibility allows customers to tailor slab revenue calculations to fit their specific needs.

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