Staff Commissions

This post will cover the feature “Commissions”. Users will learn how to set up and manage staff commissions within the system, including allocating contribution percentages among staff, interpreting proportional allocation of commissions, as well as tracking commission payouts through reports. For more information on reports, visit Sales by Staff.

 

Users can use this information to streamline commission calculations, ensure fair and transparent payout distribution, and gain better visibility into staff performance and financial reporting.

Note: Users will have to install the Commission plugin to access this feature

To set-up the commission configurations, users can follow the steps below: 

1. Navigate to Setup > Commission > Create Commission

 

2. User must fill in the Commission Details (Commission Name, Commission Type & Available locations) to create the commission. In this case, user should select the commission type to be “Staff collaborative commission”.

 

3. After creating the commission, users can create the commission rules that apply within that commission. To do this, user must first select to edit the commission.

Then, user can select the products the commission will be applicable for under “Add Variants”.

Next, user should indicate the commission rate (default 0%)  and commission staff group under “Commission Rules”.

When the cashier records a sale and tags a salesperson, the commission rate will be applied for the salesperson based on their corresponding staff group.

 

4. After the user has completed their configuration, “Save Commission” should be pressed to save the details.

 

5. To edit the commission details in the future, user can repeat steps 3-4.

 

6. If user wishes to remove commissions applications for a specific product, this can be done by removing the product using the “trash” button. 

 

Commission Calculation across different product tax types 

In both scenarios where tax is applied (inclusive/exclusive), the commission is ultimately being calculated based on the pre-tax amount (the sale amount excluding GST) 

 

1. GST inclusive (9%)

Sale with Tax = $100.00

Sale without Tax = $91.74

GST (9%) = $8.26

Commission = $91.74*10% 

=$9.17

 

2. GST exclusive (9%)

Sale with Tax = $109.00

GST (9%) = $9.00

Sale without Tax = $100.00

Commission =  $100.00*10%

=$10.00

 

3. No tax 

Sale without Tax = $100.00

Commission = $100.00*10%

=$10.00

 

Commission Calculation across multiple staffs

When multiple staff members are assigned commission rates for the same product, the system will calculate commissions based on the following logic:

1. The system first determines the highest commission rate configured among the participating staff groups. The maximum total commission pool across all tagged sales person is calculated using this “highest commission rate”. 

 

2. The maximum total commission pool is then proportionally distributed between the staffs based on their assigned commission percentages.

 

The user can refer to the following example to establish further understanding of the application:

Step 1) Determine the total commission pool

The Salesperson group has the higher commission rate (10%) between the staff groups: salesperson & cashiers.

This means that when a salesperson and cashier are both tagged for commissions in a sale, the higher commission rate (10%) will be used to determine the total commission pool. 

 

The following product LANA SHOULDER BAG 19 (no tax) retails at $100. Therefore:

Total Commission Pool = $100*10% = $10

 

Step 2) Calculate Proportional Distribution

Configured commission proportions: 

  • Salesperson = 10%
  • Cashier = 2% 

Total proportion units: 

10+2=12 

 

Step 3) Split Commission according to Proportion

Salesperson proportion: 

10÷12= 83.33%

Commission received: 

$10×83.33% = $8.33

 

Cashier proportion: 

2÷12 =16.67%

Commission received: 

$10×16.67% = $1.67