Understanding Deductions

Deductions allow your business to recover losses associated with the application of a service by deducting various costs from an employee's commission. These include Shop Costs, Labor Costs, and expenses associated with obtaining new clients. You can decide whether to apply these deductions before or after commission is calculated, and you can also configure a charge per ticket and a booth rental fee.

How do I set up deductions in Meevo?

1. Enable various deductions for each employee:
   The Deductions tab in an employee profile is where you can enable the Shop, Labor, and First Time Purchase deductions and decide when to apply them (before or after commission is calculated), as well as define a Charge per Ticket and Booth Rental fee.
2. The actual Shop, Labor, and First Time Purchase deduction amounts can be defined in two areas of Meevo:

• When amounts are defined in a service definition, any employee who performs that service and who has the corresponding deduction enabled in their profile (via step 1) has that deduction applied.
• When amounts are defined in an employee profile as a deduction override, those amounts are deducted from that specific employee when they perform that specific service. This deduction amount overrides the deduction amount on the service definition, if any.

I have deductions set up on service definitions and employee definitions. In what order of priority are those deductions applied?

Meevo applies deductions in the following order of importance:

1. Employee-specific deductions - that is, deductions defined on the Commission Overrides tab of an employee profile - always supersede all other deduction settings.
2. If there are no employee-specific deduction overrides, then the deductions defined in the service definition are applied.

How are deductions applied to $0.00 services?

When a service is comped or otherwise reduced to $0.00, the deduction behavior depends on the employee’s Apply Service Deductions setting:

• Before Commission Is Calculated: Flat-rate deductions are not applied by default. To apply them, enable Apply Flat-Rate Deductions to $0.00 Services on the employee’s Deductions tab.
• After Commission Is Calculated: Flat-rate deductions already apply to $0.00 services, so the additional option is not displayed.

When enabled, applicable flat-rate Shop Cost, Labor Cost, First Time Purchase, and Charge per Ticket deductions are included in the calculation. Percentage-based deductions calculated against a $0.00 service remain $0.00.

Important: Applying flat-rate deductions to a $0.00 service can produce negative commission. It can also reduce the employee’s commissionable sales for the payroll period and affect tiered or sliding commission rates. The setting also applies to cancellation and no-show fees reduced to $0.00.

Note: Flat-rate deductions are different from flat-rate commission overrides. Deductions are still not applied when a flat-rate commission override is used.