Understand commission discount and commission deduction

Summary

Understand the differences between Commission Discount and Commission Deduction, when to use each, and how to apply them in Box + Dice.

This article covers:

• About commission discount
• How commission discounts works  
• About commission deduction    
• How commission deductions works  
• Manage commission deduction reasons

About commission discount

When managing commissions in Box + Dice, you may need to either reduce the amount of commission a vendor needs to pay or redirect part of the commission elsewhere. The two key methods for handling these situations are Commission Deduction and Commission Discount, each serving different purposes.

Commission Discount is applied when a vendor is provided a discount on the total commission amount before tax is calculated. This is useful when you want to reduce the total commission that the vendor needs to pay. Examples include: 

• A 10% discount on a vendor’s commission
• If the vendor agrees to pay for maintenance work, reducing the total commission accordingly

How commission discounts works

The discount is applied to the Gross commission amount before tax is calculated. The vendor’s commission is reduced by the discount amount, decreasing the total amount they need to pay.

To apply a commission discount:

• Go to: Sales > Listing  
• Select the Listing
• Click Sale Details > Commissions
• Select Discount ex GST
• Enter Discount Amount
• Enter Discount Description

• Click Save

About commission deduction  

Commission Deduction is used when the vendor still needs to pay the full commission, but a portion of the funds needs to be redirected elsewhere. This is common in situations such as:

• When a portion of the commission needs to be allocated to another agent
• When an office covers the cost of a particular item

How commission deductions works

Deductions do not reduce the vendor's total commission, but they redirect a portion of the commission to another party or fund. Deductions can be applied in several ways, including:

• Gross commission - Use a deduction from the GROSS commission when you need to pay a conjunctional agent their share of the commission. This will then reduce the amount available across all of the commission splits
• Staff splits - Use a Deduction on the STAFF SPLITS  when an agent has agreed to sacrifice a component of their commission to pay for an item, for example an agent agreed to pay for some 'just listed' DL cards for marketing, this will then increase the amount in the office split
• Office splits - Use a deduction on the OFFICE SPLIT when the office is going to pay for an item, this will then increase the amount in the staff splits.

To apply a commission deduction:

• Go to: Sales > Listing
• Select the Listing
• Click Sale Details > Commission
• Scroll down to Deductions from Gross Commission (ex GST)

• Select Deduction Type
• Enter Amount or Percentage
• Click Save

Manage commission deduction reasons

Commission deduction reasons allow you to specify why a deduction is being applied to a commission.  Commission deduction reasons are added to the deduction when it’s applied. You can create custom reasons for various situations (e.g., “purchaser gift,” “franchise fee”) and apply them when relevant.

To add a commission deduction reason: 

• Go to: Settings > Sales > Deduction Reasons
• Click + Add reason
• Enter Reason 

• Click Save

To edit an existing reason:  

• Click on an existing reason
• Enter the updated reason