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

  • Service price: $100

  • Service commission: 50%

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

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

  • Service price: $100

  • Service commission: 50%

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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