Deducting Backbar Fees

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.

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Setting up a backbar fee

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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.

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Deducting a flat-rate backbar fee

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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

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Deducting a percentage-based backbar fee

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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