Configuring 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. Learn more: Employee Commissions - An Overview and Configuring Service Commissions at the Service Level

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

Table of Contents

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. Learn more: Creating Jobs
  • Ensure the invoice is closed. Learn more: Employee Commissions - An Overview
  • 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 you are at the Organization level. 
  2. Click Admin on the main menu.
    The Admin Dashboard appears. 
  3. Expand Resources
  4. Click Services.
    A list of services appears.
  5. Click Add.
    The Create Service page appears. The commission-related settings appear in the General tab. 
  6. In the General tab, for Commissions option, select Yes
  7. 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. 
  8. 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. Learn more: Understanding Sales, Collection, and Revenue in Zenoti 
  9. [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). 
  10. Click Next.
    The Price tab opens. 
  11. Enter price details such as sales price and any taxes that may apply to the service.
  12. [Optional] Enter or select details for Products, Resources, Custom, Catalog, Variants, Related, and Add-Ons.
  13. Click Finish.

Learn more: Configuring Service Commissions at the Individual Employee Level and Configuring Service Commissions at the Job Level 

Worked Example and Impact on Employee Reports

Consider the following:

Item Values
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
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.
$65

If this is the scenario, the Employee Payroll Summary Report, Employee Payroll Details Report, and Employee Commissions Report display details of this commission. See following screenshots for reference. 

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.  

The Employee Payroll Summary Report shows the commission as follows:
Note: The Service Commission column here shows that the employee has performed services three times (see column # of Service Invoices) in the given pay period. To know the commission that the employee earned on the service in the example above, see the Employee Payroll Details Report (see the next screenshot). 

The Employee Payroll Details Report shows the commission as follows:

The Employee Commission Report shows the commission as follows: 

Note: The Service Commission column shows a number that is double the amount - because the employee has performed this service twice in the given pay period. To know the commission that the employee earned on the service in the example above, see the Employee Payroll Details Report (see the above screenshot). 

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