# How Commissions Are Calculated
> Source: https://development.fuze-store.com/docs/store/staff-operations/how-commissions-are-calculated

# How Commissions Are Calculated

This is the math, from a completed sale to a ledger entry, and what happens if that sale is later refunded or voided.

## Before you start

- Staff commissions is on.

## Steps

For each person on a line: a rate set on the line itself wins, then the **item override**, then their **own staff rate**, then the **store default** for that kind of item. For an organization person, their own rate is the rate on their pay profile on the day of the sale.

**Percent**: rate times the line's net price (discounts applied, tax excluded). **Flat per unit**: rate times quantity. **Flat per line**: the rate itself. With several staff and no typed rate, each resolved rate is split evenly across the crew. A flat default is paid in full even when the line is free or costs less than the rate.

An entry is written the moment the order reaches a sales-counted state, not when it is created or paid. Each entry is one staff member and one line, and is never edited. Statuses: **Unpaid**, **Paid**, **Reversed** and **Advance**.

It writes a matching negative entry, scaled for a partial refund. Giving back an overpayment takes nothing back. A refund of an amount rather than items that goes past what the customer overpaid takes back the same share of every commission on the order. If the original was paid out, the reversal is a deduction on the next payout. If not, it simply reduces what is left to pay.

## What happens next

- Report figures show **Earned** and **Reversed** separately for the period, and neither is silently overwritten.

## Edge cases

- **A sale keeps the rate it was first priced at.** Later rate changes apply only to sales recorded after. The amount still follows the order: a changed quantity or price is worked out again at the kept rate. Commission recorded before this rule has no kept rate and takes the current one the next time it is worked out.
- **Example.** Default service rate 40%. Jun, with no rate, earns 40% of a solo ₱350 wash, ₱140. When Marco (45%) and Jun share the wash, nobody typing a rate, each rate is split between two: Marco 22.5% and Jun 20% of ₱350.
- **Custom items count as a product,** so with no rate on the line the person earns their own rate, else the product default.
- **Voided or cancelled before payout** removes the unpaid commission instead, even while the add-on has lapsed.
- **A paid entry is locked.** Once an order is completed its line staff and rates cannot be edited. Fix a mistake with an adjustment on the next payout.
- **Where it shows.** The staff member's Commissions and Payouts pages, the [Staff Commissions Report](/docs/store/reports/staff-commissions-report) and the [Daily Sheet](/docs/store/reports/daily-sheet-report).

## Works with

| Add-on or plan | What changes on this page |
| --- | --- |
| Staff Pay add-on | Required. Free during the free trial. Without it the commission, payout and cash advance screens are hidden and no commission is recorded. |
| Staff Operations add-on | Optional. A PIN sign-in proves who tagged each line. |
| Staff Commissions preference | The switch inside Staff Pay that turns commissions on. See [Turning On Commissions](/docs/store/staff-operations/turning-on-commissions). |

## Related guides

- [Setting Commission Rates](/docs/store/staff-operations/setting-commission-rates)
- [Staff Commissions Overview](/docs/store/staff-operations/commissions-overview)
- [Staff Commissions Page](/docs/store/staff-operations/staff-commissions-page)