The following information guide identifies the applicable steps to configure your candidate assignments to have commission based charges/rates applied for invoicing.
For example, Etz will reference Commission rate charges in the Candidate Assignment space as either Provider Fees (%), Administration Fees (%) or On-Cost Fees (%) which could be applied on top of the base labour cost of the candidate. Etz provide extensive options within this space to enable the agency to have the ability to use this function and configure custom Commission Rate Codes and apply them as needed in an automated and repeatable way.
1. Deciding to setup Commission Rates to apply to my Candidate Assignments and Invoices, where should I go to start and configure for this charging mode?
Rate Code Entry [found under the Reference Data menu item]. To enable the automated application of Commission based rate codes and charges to candidate assignments and invoices, the agency must first create a list of all the respective commission based rate codes in your Etz software instance.
Above is an example of the creation of an ‘Administration Fee of 1.5%’ as a Commission Rate Code for use. It is vitally important that the Rate Code Type is declared as ‘Commission’ else the rate code will not be available for later application in the Assignment Candidate record.
2. What are some further examples I can think about when considering Commission based rates to apply to my Assignments and Invoicing?
Below are some very generic forms of Commission based rates codes to help further explain how this Etz function can be applied in your Agency operations for other forms of client billing.
Etz provide a very flexible function at the ‘Rate Code Entry’ point so your agency can create any Commission rate code that meets your current business operations and customer agreements.
3. Are there any further tips to consider in the Rate Code Entry space?
Yes. There are a couple of configuration tips to you can consider they are:
a. Rate Code Description
The Rate Code description will appear in the drop box for selection when applying the Commission to the Candidate Assignment record. Furthermore, this Rate Code description will appear on the Sales Invoice, so if you would like these transaction lines to flow through as your client needs to see them, so be sure to apply the appropriate description [generic of detailed] when first creating the Commission based rate code for use.
b. Invoice Index
When creating a new Rate Code Entry there is a cell entry available [Invoice Index] where a numeric value can be entered. This Invoice Index value enables the Etz software to appropriately order the placement of the chargeable Rate Codes on the invoice for the customer. Please see the above Rate Code Entry screenshot to understand how the Invoice Index values (highlighted right-hand column) have been utilised against the sample Commission Rate Codes in the table.
4. Having the Commission based rate codes setup, how do I apply them to an individual ‘Candidate Assignment’ for invoice automation?
Go to Assignment Entry [found under the Reference Data menu item].
Either Add new assignment or choose to edit [select the pencil icon] for an existing candidate assignment record already setup. For this example, we will utilise the existing Tony Smith candidate record who is assigned to MACROSOFT [the Client].
Then prepare to adjust the Pay and Bill rates as required. Generally Commission rate (%) charges for your Sales Invoices are calculated off a base rate (cost/agreed rate with your client). Here you can configure your Pay and Bill Rates to be the same ready for the Commission (%) to be applied ready for the Sales Invoice.
Go to Commissions tab [found within the Assignment record].
Important Note: If this Commission tab is unselect able (greyed out), please immediately speak with your Agency Admin. to have this function approved and enabled for agency use.
Select the Add Commission button to commence applying new commission based charges against your candidate assignment (which automatically calculate and present on your Sales Invoice).
Configuring the Commission settings.
Ref. A [Commission Rate Code] – Please select your applicable commission charge from your list of commission based rate codes already entered into the software. If your commission code does not appear here, please go to the start of this document where is describes how to add a new rate code.
Ref. B [Commission Type] – Please select who is designated to pay this commission rate. In this example I will state the ‘Client Pays’ so this will track to the Sales Invoice. Further into this Knowledge Base document I will describe the other options, such as ‘ Candidate Pays’.. and where you could use this method.
Ref. C [Add Commission Rule] – Select this button when you are ready to create the rule for final configuration, such as applying the designated percentage (%) rate to charge.
Configuring the Provider Fee of 22% commission example.
Ref. D [Rate Code] – By default ‘Gross Across Timesheet’ will be selected. This means that the commission rule (as constructed) will be applied to the baseline costing equation of Labour(hours) x Labour Bill Rate$ in a gross form. For this example, [Gross Across Timesheet] has been selected to drive simple outcomes for this Knowledge Base article.
Ref. E [Rule Type] – For this example, ‘Percentage Margin’ has been selected to calculate the defined ‘Percentage’ value against the gross timesheet value as a margin on top. There are a number of differing Rule Types for selection, the additional variants will be described in further Knowledge base articles to be published.
Ref. F [Percentage] – To match our Rate Code description of 22%, the value of 22.00 has been declared in this cell for calculation on the gross timesheet value. This cell can be updated with any value the Agency wishes to declare and apply. As mention previously in the earlier Support reference point in this document, Rate code descriptions can be kept very generic, thus enabling the varied percentage to be adjusted on the fly at the candidate assignment level. Etz provide many opportunities to adjust this rate code description information prior to the Sales Invoice creation.
Ref. G [Update] – Select this button when satisfied with the configuration. Rest assured, if you need to edit or adjust this rule or values… this can be done after the initial update with a minimum of fuss.
The Commission Rule is Set
The commission rule for applying a ‘Provider Fee of 22%’ has been configured ready to apply to the candidates timesheet hours and gross values as calculated. Automatically these commission values will be seen and validated in the ‘Online Validation’ section by the Agency User responsible for validating this candidate timesheets prior to Sales Invoice creation.
5. What if I have more than one (1) Commission based calculation for an assignment… How do I manage and configure this for the Sales Invoice?
Please select the Add Commission button to add a new commission set for the Candidate Assignment which is in addition to existing commission rules. Etz’s leading architecture enables multiple commission based rules to automatically calculate and apply for your client based Sales Invoices.
6. What if I have setup complex commission charges where I have multiple commission rules that need to exclude other gross commission values?
This is where Etz continue to deliver added value for our customers (over and above the regular functions of our competitors) this is by tackling the complex configurations with our off-the-shelf user configurations. Etz recognise that not all Recruitment Agencies operations are exactly the same, nor should they be. Etz have ensured that our user functions and configurations can be adjusted very easily as needed to cater for very complex business rules (out of the box) as we are all about automation at any level.
Steps to Action: Advanced Configuration of the Provider Fee of 22% commission.
Ref. W [Commission Rate Code] – As set in the previous example, the ‘Provider Fee of 22%’ has been selected as the foundation commission code for this Candidate Assignment.
To simulate a complex commission example, we are excluding other pre-calculated commissions from the core ‘Provider Fee of 22%’ commission fee, namely the ‘Administration Fee 1.5%’ and ‘On-Costs of 20%’.
Ref. X [Add Commission Rule] – Select this button to add further commission rules.
Ref. Y [Rate Code] – The ‘Administration Fee 1.5%’ has been selected as a sub rate code with the commission rule. To exclude this rate code and any commissions it may have pre-calculated if utilised in this Commissions space for this candidate. The following need to be actioned:
• The [Rule Type] needs to be set as ‘Flat Margin’
• The [Percentage] needs to be set as ‘0.00’
• The [Amount] needs to be set as ‘0.00’
Ref. Z [Rate Code] – The ‘On-Costs of 20%’ has been selected as a sub rate code with the commission rule. To exclude this pre-calculated commission rule if utilised by following the same configuration settings as per the above ‘Administration Fee 1.5%’.
The Outcome Achieved
The above commission rule configurations will have the Provider Fee of 22% calculate against the gross timesheet value, excluding any other commission calculations applied.
7. What if I have a commission based assignment charge that I want setup and automated, but here the ‘Candidate Pays’… Does Etz cater for this function?
Yes. Etz have the flexibility to declare the [Commission Type] as either:
• Client Pays
• Candidate Pays - Will use this selection in the below example.
• Direct to Supplier
To further demonstrate a pertinent example of when the Candidate commission rule could be utilised by an Agency with a ‘Candidate Pays’ commission type, below I have created a commission rule set whereby the candidate is paying the Agency for Insurance.
Ref. H [Commission Rate Code] – An Insurance Rate Code has been setup prior and is selected.
Ref. I [Commission Type] – This option is configured to have ‘Candidate Pays’ selected.
Ref. J [Rate Code] – In this instance, we are wanting the commission rule to apply to the entire timesheet.
Ref. K [Rule Type] – The ‘Percentage with Max Margin Per Unit’ has been chosen to have the rule applied to all candidate hours(units) submitted for pay.
Other Rule Types available are:
Ref. L [Percentage] – This is the declared portion (as a %) of the summed units that you need the calculation to apply against. Applying 100, means that you are wanting ALL hours(units) to be charged at the rate declared in the [Amount] field.
Ref. M [Amount] – This is the rate at which the Agency will charge against the summed hours(units). For this example an amount of $0.60 is the amount for calculation.
The Outcome Achieved
The above commission rule example and configurations will have Candidate Insurance calculated and deducted from their timesheet pay. This will be calculated by the total number of hours worked and submitted by the candidate for the timesheet period then charged at $0.60 per hour.
This could also be presented as:
Candidate Hours Worked: 45hours
Insurance applied to (% of) Hours Worked: 100%
Candidate Charge for Insurance per Hour: $0.60
45hours x 100% = 45hours x $0.60 per hour = $27.00
Under this Insurance commission rule the candidate would have $27.00 deducted from their pay to cover the 45hours worked.
8. Seeking to maximise automations with Sales Invoice creation and innovation, what could a complex bundle of commission charges look like with this function?
Below is a sample multi-commission rule (bundle) which uses both Client and Candidate Pays commission types. All Client Pays commission charges will appear on the Sales Invoice ready for billing after final validation by the Agency.