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Price Book Commissions

Written by Nate H

Price Book Commissions settings let you configure commission behavior directly on your Price Book items, giving you more control over how commissions are calculated and paid across your team.

⚠️ Availability: Price Book Commissions is only available on the HVAC, Electrical, & Plumbing package, on the Essentials and MAX plans.


Before you start

To configure commission settings on Price Book items:

  • Your organization must be on the HVAC, Electrical, & Plumbing package and on an Essentials or MAX plan.

  • Commissions must be enabled.

Enable Commissions

  1. Go to Settings.

  2. Click on Manage Pay.

  3. Turn on the Track Commissions toggle.

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Set Commission settings for each team member

Before configuring commission in Price book, you’ll need to set the commission rates for each team member.

Choose whether commissions will be calculated on Revenue or Gross Profit. The setting you choose will apply to all team members.

See below for details on both settings

Revenue

Commission is calculated on the total amount billed to the customer, before any costs are subtracted.

Commission = Job Revenue × Commission Rate %

Example:

A service is sold for $2,000 and has a 10% Sold By commission rate configured in Pricebook.

  • Revenue = $2,000

  • Commission = $2,000 × 10%

  • Commission earned = $200

Revenue-based commissions are best for businesses that want to reward sales volume regardless of job costs.

Gross Profit

Commission is calculated on the job's gross profit — the amount remaining after costs are deducted from the subtotal.

Gross Profit = Subtotal − Actual Labor Costs − Material line item unit costs − Material job inputs − Miscellaneous job inputs − Discounts Commission = Gross Profit × Commission Rate %

When your account uses Gross Profit commissions:

  • You can configure a Sold By commission rate on Pricebook items.

  • Sold By commissions are calculated using the line item's revenue and the configured Pricebook Sold By rate.

  • Worked By commission rates cannot be configured on Pricebook items.

  • Worked By commissions continue to use the employee's configured commission rate and are calculated against gross profit.

Example: Sold By Commission (Pricebook Rate)

A service is sold for $2,000 and has a 10% Sold By commission rate configured in Pricebook.

  • Revenue = $2,000

  • Sold By Commission = $2,000 × 10%

  • Commission earned = $200

Example: Worked By Commission (Employee Rate)

A service is sold for $2,000 with:

  • Material costs: $500

  • Labor costs: $300

  • Employee Worked By commission rate: 10%

Gross Profit = $2,000 − ($500 + $300) = $1,200

  • Worked By Commission = $1,200 × 10%

  • Commission earned = $120

Gross Profit commissions are best for businesses that want technician commissions to reflect job profitability while still allowing sales commissions to be configured at the Pricebook item level.

Set Team Member Rates

Each team member can have two commission rates:

  • Worked by — applied when the team member is assigned as a Worked by

  • Sold by — applied when the team member is assigned as a Sold by

ℹ️ Once this is enabled, you'll be able to configure commission settings directly within your Price Book items.


Configure Commission settings on Price Book items

Commission settings can be configured directly on:

  • Services

  • Materials

  • Pricing Forms

Within each item, you can:

  • Mark the item as Commissionable

  • Mark the item as non-Commissionable

  • Set a custom Sold By commission rate

  • Set a custom Worked By commission rate

  • Leave these rates blank to use the employee’s default rates that were set in Commission settings under Manage Pay.

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Sold By vs Worked By rates

Sold By

Worked By

Applies to the employee who sold the job or line item.

Applies to the employee performing the work.

You can configure one or both rates directly on the Price Book item.

Mark an item as Commissionable

Each Price Book item includes a Commissionable setting.

Commissionable without specific rates

You can mark an item as commissionable without entering custom rates. In this case:

  • The item is still eligible for commission.

  • The system will use the employee's default commission rates configured in Commissions settings under Manage Pay.

When to use this: when most items should follow standard employee commission rules and you only want to customize rates for specific items.

Not Commissionable

If an item should never generate commission:

  1. Turn off Commissionable toggle on that specific item.

  2. Save the item.

When marked as non-commissionable:

  • The item will not contribute toward commission payouts.

  • No employee rates or Price Book rates will apply.

Bulk update commission settings

You can update commission settings across multiple Price Book items at once using the Commissionable adjuster (Bulk Updater) in Price Book settings (Settings → Price Book → Commission Rates).

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The Bulk Updater allows you to:

  • Mark items as commissionable

  • Mark items as non-commissionable

  • Add Sold By rates in bulk

  • Add Worked By rates in bulk

  • Update settings across hundreds of items quickly

When the Bulk Updater is most useful:

  • Setting up commissions for the first time

  • Migrating from another system

  • Updating large Price Books

How Price Book commission settings work on jobs

When a Price Book item is added to a job, the system determines commission behavior based on the following precedence:

1. Price Book item with specific commission rates

If the line item has specific commission rates configured in the Price Book, those rates take precedence. The job will respect the Price Book-level Sold By and Worked By rates.

2. Price Book item marked as commissionable without rates

If the item is only marked as commissionable, the system falls back to the employee's default commission rates.

3. Non-Price Book line items

If the line item is not connected to the Price Book, the system also falls back to employee default commission rates.

4. Non-commissionable items

If the item is marked as non-commissionable, no commission is calculated for that line item.

ℹ️ Tip: To verify which rate is being applied to a line item, open the job, expand Commissions, and review the per-employee breakdown. Rates pulled from the Price Book are shown on the line item; employee default rates appear in the Commissions panel.

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Need help or have questions?

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