Commission Percentage and Commission Base vs Gross Profit on Job Cost Sheet

The figures that appear on a job cost sheet for Commission Base Percent and Projected Commission Base may vary from the Gross Profit and Gross Profit Percent on the job cost sheet.  These calculations are based on the options selected when creating commission schedules (Order Entry > Utilities > Commissions) then selecting preferred commission schedule when job costing.

Order Entry>Utilities>Commissions

The options for each is as follows:

Commission Base Percent Type
This is the percentage basis that will determine which line in the splits the system will use to multiply by the commission base. You can select from:

• Profit / (Invoice Total - Charged Tax)
• Profit / Material Only
• Profit / Installation Cost
• Material Profit/ Material Total

Commission Base Type
The commission base type is the base number that the commission percent will be figured on. That percentage can be based on one of the following:

• Invoice Total - Tax Charged
• Profit
• Amount Paid (collected)
• Material
• Inv. Total - Tax Charged (Original Only)
• Inv. Total - Tax Charged (Overages Only)

When viewing the job cost sheet, profit and commission percentages may or may not match.  The four areas in review are:

• Base Percent (from Commission Schedule)
• Projected Commission Base (from Commission Schedule)
• Gross Profit (Total Transaction minus all costs {including tax costs})
• Gross Profit Percent (Gross Profit / Net Sale)

To fully understand how each of these works with one another, the following example order was created:

The breakdown of costs and selling prices for this order is as follows:

Below is a chart how each selection affects commissions for the sample order above:

Note:  Using a Commission Base Reduction (like 3% credit card fees) will alter how these calculations are made.  For additional information, click here: How Commission Base Reduction is calculated for your commission