When setting up the rules for calculating salaries (commissions) in Orderry, there is an additional event setting — an "Take into account cost price of products written off for the zero price" checkbox. This checkbox is available in the following events: to the Specialist / Manager / Lead Manager for a labor or service in the work order.
The calculation is based on the following formula: the cost of the products is subtracted from the amount or profit from the service/labor. And the employee is paid a specified percentage of the amount received.
Remember that the profit from a service/labor is calculated as the service's amount minus the service's cost price.
E.g., Let’s consider the following case: the "To specialist for the labor or service in order" rule with the amount of 10% is configured in the employee profile, and the "Take into account cost price of products written off for the zero price" checkbox is enabled.
In the work order, an employee performed a labor with a price of 300 and a cost price of 50 and added a spare part with a zero price but a cost price of 100.
The total amount of labor (300) minus the cost price of the part (100) = 200.
10% of 200 = 20
As another example, let’s use the same rule but make the calculation not from the amount but from the profit of labor:
The total amount of labor (300), subtract the cost price of labor (50) and subtract the cost price of the part (100) = 150.
10% of 150 = 15.
If you have the option “Take into account cost price of products written off for the zero price” enabled and
2 or more services are added under one employee, and
one or more of them has an exceptional commission,
then when calculating the salary, the cost price of the product added to this order is distributed proportionally between the added services. For example:
Service 1: cost: $3000, no exceptional commission, cost: $0.
Service 2: cost: $2000, exceptional commission: $500, cost price: $0.
Product: cost price: $200.
The cost of the product is distributed among the services in proportion to their cost:
For service 1: (200/5000) * 3000 = $120.
For service 2: (200/5000) * 2000 = $80.
Important: The cost of Service 1 is allocated, but not taken into account when calculating the salary, since the exceptional commission takes precedence.
Calculation of profit
Service profit = Service cost - Service cost price - Part of the cost price of the product for the service
Service 1: 3000-0-120 = $2880.
Service 2: 2000-0-80=$1920.
Calculation of salary
The employee will receive a part of the profit, for example, 50%. In this case:
For service 1: $1440 (50% of $2880).
For service 2: $500 (exceptional commission).
In total, the employee will receive $1440 + $500 = $1940.
Note that you can set a negative number for the profit value when setting up a rule with a profit calculation. This can be useful if your company performs warranty work orders free of charge for the client and you want to deduct the spare part's cost from the technician's salary. Learn more about warranty work orders in this article.