Kitomba blog

We’re excited to announce that Kitomba Concessions is being enhanced! You’ll have the new and improved Concessions soon.

There’s some cool changes coming and you’ll need some time to get prepared. Here’s a guide on what to expect and how to get ready for the all new Kitomba Concessions.

An easier way to pay commission on Concessions

We’re making it easy for you to reward your staff for the work they’ve done, no matter the payment method your clients choose to use.

Soon Concessions will be accounted for in the same way Kitomba deals with Vouchers, using what’s called “accrual accounting”.

This way, revenue from Concessions is recognised at the time the client uses their Concession to pay for a service, ie. when you’ve done the work, making it much easier to reward your staff for their work.

Just like vouchers, Concessions you’ve sold that haven’t yet been redeemed will show in your reports, but the revenue from this won’t be added to your total sales figure until a client uses them.

Currently, Kitomba recognises the revenue from Concessions at the time they’re purchased, not when a client uses a Concession to pay for a service. This is called “cash accounting” and makes the way you pay commission on Concession payments complicated.

We think the new way will be better because:

1. It’s more commonly used.
2. It’s a better business predictor. For example, if you sell $3,000 worth of Concessions in May, the current method would show you’ve had a great month. However, you won’t show any income when the Concessions are redeemed over time, even though this is when you’ve done the work. With the new method, income for Concessions will show when you perform the services.
3. It simplifies the way you pay commission on Concessions.

For more information about how Kitomba accounts for Vouchers and Concessions, check out our support guide.

Start preparing for Concessions

Your staffs commission

If you pay your staff commission for Concessions, it’s likely you’ll need to make a change to the way you do things. We know that our customers all use different methods for paying commission, but here’s some advice on how to get prepared:

1. Determine how the new Concessions accounting method affects your commission payments.
2. Chat to your staff about the change if it affects their commission payments. It may help to explain that this new method means they’ll always be rewarded after they provide a service no matter how or when it was paid for.
3. Prepare and set up new processes to make the transition for commission payments easy. We suggest thinking about when will be the best time for you and your staff to put these changes in place. Remember, from the date when you receive the new Concessions feature, even your historical reports will be updated to reflect the new accounting method.

Your Concessions

There’s no need to do anything to the Concessions you already have set up – they’ll be available to sell as normal.  

Your client’s Concessions

Your client’s won’t be affected by this change. They will still be able to redeem their unused Concessions as usual.

Keep an eye out for the upcoming Concessions release and more information about these additions!

FAQs

How will Concessions purchased and redeemed before this change be accounted for?

We’re updating all of your historical data and reports to account for Concessions in the new way. That way there’s no confusion around which method has been used when, whether it’s a Concession purchased before the release, or after.

If you’re recording the sale of a Concession and then a dollar value on the redemption of the concession, isn’t that double counting?

No, Concessions work like Vouchers. The initial sale of the Concession is recorded in your Kitomba but isn’t added into your total sales. It’s only when the Concession is redeemed that the revenue is added to your total sales.

I like the way concessions is currently accounted for and the way I reward my staff – I don’t want to change

Whilst Concessions sold will no longer be included in your total sales, the Concessions figure is still available in your reports. So if you add Concessions sold and total sales, then subtract the Concessions redeemed figure, you’ll have the “old” number according to the way Concessions were previously accounted for.