When job costing an order, RFMS offers an option to reduce the commission base. This is often used by clicking the 3% credit card transaction fee, which only applies to payments made via credit card for that order. The example order below was paid for with a credit card:
When job costing the order, the Comm.Base Reduc option on the right can be used to reduce commission. Clicking the "R" box allows RFMS to calculate a 3% charge to the commission base and profit on any payments made with a credit card. In our example above, 3% on $1,600 is the $48 dollars that RFMS entered.
The commission for this order is being calculated with the Commission Base Type "Profit / (Invoice Total - Tax Charged)" and the Commission Base Type is set to "Profit":
How does the $48.00 credit card commission base reduction calculate the Base Percent and Projected Commission Base behind the scenes in RFMS?
Profit (Commission Base) and Base Percent Calculations:
Profit (minus Commission Base Reduction) divided by
(Invoice Total - Tax Charged minus Commission Base Reduction)
$650 profit - $48 credit card fee= $602 PROFIT (Commission Base) divided by
($1,600 invoice total - $100 sales tax- $48 credit card fee) =
41.46% BASE PERCENT
For additional information on general commission calculations, click here:Understanding Job Cost Sheet Gross Profit vs Commission Percentage and Commission Base
Comments
Article is closed for comments.