Piecemeal Pay is a way to help you maintain your competitive pricing structure while retaining your employees during times when work can be scarce or intermittent. Using Piecemeal within the program allows you to pay a base rate that is based on a percentage of Labor Cost. Labor Cost is a set value assigned to Invoice Item types which are Inventory, Serialized, Non-Inventory, Other Charge, and Service. With the exception of the Inventory and Serialized Parts, the special check box option must be checked for use in conjunction with the piecemeal payroll feature.
- From the main menu, click Edit| Preferences| Payroll | Company Preferences Tab | “Use Labor Cost for Commissions”
- From the Tool Bar, click the option for Preferences and navigate to Payroll| Company Preferences Tab | “Use Labor Cost for Commissions”
Once the preference is enabled, the Labor Cost field on an Invoice Item is visible. To assign the Labor Cost to your Invoice Items, navigate to Customers| Invoice Items List. Edit your items to assign a Labor Cost and enter the Piecemeal Cost into the Labor Cost field.
In order to use the piecemeal pricing to pay your employees, you will need to create a new Commission Method. Commission Methods can be created by navigating to Employees| Lists| Commission Method List. Right-click on the list and choose the option to create a New Commission Method. Give the commission a name you will be able to distinguish from others and choose the option to calculate based on the Percentage of Labor Cost. You can assign a set percentage or leave the amount field blank and enter it when assigning commissions on the Invoices or Sales.
When creating an Invoice/Sale, select the invoice items for materials and services provided to the Customer:Job. Each item will have the listed Labor Cost and a Total Labor Cost populate on the line item. In the header information, the Total Labor Cost of all items and services is calculated for internal use.
Once the Invoice/Sale is saved, the Assign Commissions entries should be completed. From the Invoice/Sale Menu, select the option to Assign Commissions. Select the Employee/Technician and commission method of “Percentage of Labor Cost” from the drop-down. Enter the correct percentage amount for each Employee/Technician that is selected. Click OK to save the form. Once saved, the commission amounts will show up in Process Pay Group for payroll processing.
To review a summary of the commission amounts at the sales level, you can review the Sales Commission Summary located under Reports| Payroll | Payroll Sales Commission Summary. This report shows the total amount of commission by Employee for each Invoice. By default, the report provides a page break between each employee’s data. To identify where the piecemeal work was done, the Job Address is included in the report. This address information is populated from the Work Address fields within the Invoice/Sale. You can filter by an Invoice Date Range, an Employee, and a Customer:Job.
- You can keep the Labor Cost and Total Cost columns visible or hide these fields in Form Preferences.
- You can assign more than one commission calculation to an Invoice/Sale for any given employee.