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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 backbar fee as a flat rateLink copied

In the following example, we will deduct a $5 backbar fee.

- **Service price:&#x20;**$100

- **Service commission:&#x20;**&#x35;0%

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

- $100 service price minus $5 = $95

- 50% commission on $95 = $47.50 total commission

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

- 50% commission on $100 service price = $50

- $50 minus $5 = $45 total commission

## Link copiedDeducting a backbar fee as a percentageLink copied

In the following example, we will deduct a 5% backbar fee.

- **Service price:&#x20;**$100

- **Service commission:&#x20;**&#x35;0%

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

- $100 service price minus 5% of the service price = $95

- 50% commission on $95 = $47.50 total commission

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

- 50% commission on $100 service price = $50

- $50 minus 5% of the service price = $45 total commission

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