1 (877) 897-1209 1Staff@Profad.com

1Staff provides four options for VMS fee calculations

VMS Fee Calculations in 1Staff 1Staff has focused on customer needs for a more flexible approach to calculating Vendor Management Software (VMS) fees. These fees are seen as a reduction fee applied to their Total Bill Amount. The VMS Fee functionality came about to allow 1Staff customers to track the effects of VMS Fees on gross margins and ensure a smooth receivable cash apply process, amongst other customer needs. Previous Calculation Methods In the past, 1Staff only offered one specific way of calculating the VMS fee. The VMS Expense Percentage was applied after the tax calculations. Though this method of calculating the VMS fee fit some customers, others wanted more flexibility. Some 1Staff customers tracked the VMS Fee calculation by reducing the bill amount on the assignment. Reducing the bill amount rather than tracking the actual VMS expense has a few drawbacks including:
  • The inability for the staffing agency to properly track the actual VMS expense
  • Revenue Miscalculation (With a bill amount of $100 and a $2 VMS fee, should the actual generated revenue be $98 or $100?)
  • If a VMS Fee does change the staffing company would need to edit the bill rate on every assignment rather than changing a single VMS Fee ID
Four New Options for Calculating VMS Fees Thankfully, these drawbacks can be avoided in newer versions of 1Staff which provide staffing firms four options for calculating their VMS Fee:
  • Fee + Tax – Discount
  • Fee + Tax
  • Fee – Discount
  • Fee
The VMS fee will be correctly applied to the customer invoice and will match the cash received on that invoice.  It can also be tracked in a GL account to include in financial statements or includes in SmartLists or 1Staff Analytics for more detailed gross margin reporting.
VMS = Vendor Management Software
VMS Fee = From a Customer perspective, the VMS Fee, is seen as a reduction fee applied to their Total Bill Amount
VMS Expense = From the Staffing Agency perspective, the VMS expense is an expense which reduces the Staffing Agency gross margin
Take Advantage Today of This VMS Feature Available in the latest 1Staff Back Office Build. Contact 1Staff today >

Interested in 1Staff?

Learn more about how 1Staff can improve your staffing business.

Get in Touch

We believe that learning is lifelong, growth comes from strategy and challenges can be overcome. Our story in the US began in 1996, we currently have offices in Denver & Fargo and consultants across the country. So, if you’re looking to take your organisation to the next level, why not give us a call?

About 1Staff Staffing Software?

1Staff is the leading staffing software and recruitment solution that fully leverages the Microsoft Dynamics platform

1Staff Front Office will help your sales people find and service clients, help your recruiters manage candidates and fill jobs quicker and help your compliance team drive efficiencies and de-risk the onboarding process.


1Staff Back Office is built on Microsoft Dynamics GP, a powerful pay/bill and financial (GL/AR/AP) system. 1Staff Back Office will help your workforce capture their time, help finance smooth the pay/bill process and help the executive control and grow the business.

1Staff Analytics & Planning underpinned by Microsoft Power BI delivers extensive analytics, role-based dashboards plus budgeting forecasting and scenario planning

More from 1Staff by Professional Advantage

Configuring SQL data files for pre-growth

Configuring SQL data files for pre-growth

Configuring SQL data files for pre-growth  This blog offers a solution to finding a suitable process to manage the growth of SQL database data files, instead of leaving them unmanaged in the default auto-growth configuration.The default settings for database...

The Professional Advantage Difference

Professional Advantage has been a multi awarded Microsoft Presidents Club Member and Microsoft Certified Partner for many years, providing software solutions underpinned by Microsoft Dynamics GP and D365/CRM platforms.

With 6,000 customers globally, our focus has always been to help our clients use technology to enable high performing workplaces.

Connect with us

Call Us

1 (877) 897-1209

Customer Support

1 (844) 407-9305