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.
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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

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