1Staff provides four options for VMS fee calculations
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 >
Staffing Software & Vendor Management System
1Staff addresses all your Vendor Management System (VMS) needs from job placement to pay and recruiting.
Interested in 1Staff?
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 powered by Microsoft Dynamics 365 (D365), enables you to combine your CRM, ATS and Onboarding systems within Microsoft Cloud. 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.
The Back Office Office is built on two platforms, you can choose to implement 1Staff 365 powered by Microsoft Dynamics 365 Business Central or 1Staff Back Office powered by Microsoft Dynamics GP. Both powerful pay/bill and full financials (GL/AP/AR). 1Staff 365 and 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
How can you minimize the repercussions of a ransomware attack?
Ransomware attacks can be devastating. Make sure you do not fall prey to the detrimental consequences of an attack!
Keeping the Connection Alive – Microsoft Dynamics GP
Within Microsoft Dynamics GP, the majority of the posting process actually occurs on the SQL server rather than on the workstation. At certain intervals in the process, the server communicates back to your Dynamics GP client, passing the results back and sending any instructions for the next steps back to the SQL server.
Unmistakable signs your business is ready for a Modern MSP
Pre-pandemic, your business could operate with most of your employees working inside the four corners of your office, and your IT managed service provider (MSP) focused more on monitoring and securing your network, servers, and desktops.
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.
