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# Deducting Backbar Fees

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When calculating service commission, deducting a backbar fee can be helpful if you need to deduct the cost of backbar items used during the service.

To deduct a backbar fee, you can add a pre or post-commission deduction (flat rate or percentage) to the service.

## Link copiedSetting up a backbar feeLink copied

To set up a backbar fee, you must be an Admin user. Open the **Services** app and select the service.

In the **Details** tab, select **Edit**.

Select **Additional options**.

Enable the **This service has a commission deduction** toggle. Enter a pre or post-commission deduction and select **Save**. Pre-commission deductions will be taken out **before** commission is calculated. Post-commission deductions will be taken out **after** commission is calculated.

Once the backbar fee is set up, you will be able to see any pre or post-commission deductions in the [Payroll report](/learn/payroll-report/).

## Link copiedDeducting a flat-rate backbar feeLink copied

In the following example, we will deduct a $5 backbar fee. This example uses a $150 service with a 50% commission.

If the backbar fee is set up as a **pre-commission deduction**, it will be taken out **before** commission is calculated:

- $150 - $5 = $145

- $145 x 50% = **$72.50 total commission**

If the backbar fee is set up as a **post-commission deduction**, it will be taken out **after** commission is calculated:

- $150 x 50% = $75

- $75 - $5 = **$70 total commission**

## Link copiedDeducting a percentage-based backbar feeLink copied

In the following example, we will deduct a 5% backbar fee. This example uses a $150 service with a 50% commission.

If the backbar fee is set up as a **pre-commission deduction**, it will be taken out **before** commission is calculated:

- $150 - 5% = $142.50

- $142.50 x 50% = **$71.25 total commission**

If the backbar fee is set up as a **post-commission deduction**, it will be taken out **after** commission is calculated:

- $150 x 50% = $75

- $75 - 5% of the service price = **$67.50 total commission**

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