Taking commission from supplier payments

Supplier commission (sometimes called contractor commission) lets you take a commission from the payments you make to a supplier. You set it up once on the supplier's record as a percentage, and Alto deducts it automatically from that supplier's charges, worked out on either the net or gross amount of each invoice.

The supplier sees the commission deducted on their remittance advice. The landlord's statement shows the full invoice amount, not the commission.

Setting up supplier commission

Add the commission to the supplier's record. It's deducted from the expense types you choose, from the Charge From date until any End Date you set.

1. Click Contacts on the main navigation bar
2. Select the relevant contact (supplier) from Recent & Favourite Contacts
   1. Alternatively, find the contact (supplier) using the Search Contacts bar in the top right
3. Click Actions
4. In the dropdown menu, click Charge
5. Click Add Commission
6. The Add Supplier Fee For window opens. Complete the following fields:
   1. Description - Edit this so it describes the commission charge
   2. Charged on - In the dropdown, click the expense type the commission is charged on, or All
   3. Commission % - Enter the total commission percentage to deduct
   4. Deduct from Gross Amount % - Tick to work out the commission on the gross amount of the expense, or leave unticked to use the net amount
   5. Charge From - The date the commission starts being deducted. By default, it's the current date
   6. End Date - Leave this blank, unless the commission is to stop on a particular date
7. Click OK
8. Click Close

Working out the commission % to set

If you add an uplift when you recharge a supplier's invoice to the landlord, you can use supplier commission to claw the uplift back. Use the calculator below to work out the % to set in Alto, or to check what the supplier receives with a % you've already set.

FAQs

• Is supplier commission worked out on the net or gross amount?

It depends on Deduct from Gross Amount % on the supplier's commission. Ticked, Alto works out the commission on the gross amount of the expense. Unticked, it uses the net amount.

• Why is VAT being added to the commission when the supplier isn't VAT registered?

VAT on the commission depends on your agency's VAT registration, not the supplier's. If your agency is VAT registered, Alto adds VAT to the commission amount.

• Can I take a fixed amount instead of a percentage?

Supplier commission is always set as a percentage. To take a fixed amount, use the calculator above: choose Fixed amount under Supplier commission to work out the % to set.

• Related Help Centre articles that you may find useful.

  Adding a supplier

  Raising an expense charge to a supplier

  Paying a supplier

  Dashboard - suppliers to pay

  Reversing a supplier payment