A site commission can be simple to calculate and still be hard to explain six months later. The usual problem is not the percentage itself. It is the missing context: which machines were covered, whether the rate changed, what “takings” meant in the agreement and which collection statement the site received.
A good commission record separates the standing agreement from each collection. That gives the operator and site owner a shared reference point without rewriting the commercial terms at every visit.
Start with the basis of the commission
Record the agreement in plain language. A percentage on its own is not enough. The record should say:
- which site and machines the agreement covers;
- the rate, tier or charity contribution model;
- the figure to which the rate applies;
- how often collections and payments are expected;
- how the site will receive its statement or receipt;
- who can approve a change; and
- the start date and any review date.
The phrase “commission on takings” can cause trouble if one person means the gross coin count and another means a figure after an agreed deduction. Write down the calculation basis and use the same labels on every collection record.
Where several machines sit at one venue, decide whether each machine has its own rate or whether the agreement works across the whole site. Keep that distinction visible. Otherwise, a machine move or replacement can quietly change the result.
Give rate changes an effective date
Do not overwrite an old rate as though it never existed. Keep the previous terms, record who approved the change and add the date from which the new rate applies. If a collection period crosses that date, agree how it will be handled before calculating the payment.
This matters with tiered commission too. The record needs the thresholds, the rate applied to each band and the period over which the threshold is measured. A tier based on one collection is different from a tier based on a month or quarter.
Charity arrangements deserve the same care. Name the contribution model, its basis and the recipient. Do not hide a charity amount inside a general commission field if the two need to be reported separately.
Make each collection statement stand on its own
A site owner should not need the operator’s notebook to understand a collection. The statement or receipt should identify the site, machine, collection date and relevant period. It should then show the gross amount counted, the commission or contribution calculation and the resulting amount due or retained, using the terms from the agreement.
Add a reference that links the statement to the saved cash-up. Record whether it was printed, emailed or made available through a portal. If somebody queries the figures later, both sides can discuss the same document rather than comparing a paper note with a spreadsheet total.
Corrections should be visible. Keep the first record, the corrected figures, the reason and the date of the change. If the original statement has already gone to the site, send the corrected version rather than silently changing the operator’s copy.
Keep the operational statement separate from VAT paperwork
A commission statement or cash-up receipt is not automatically a VAT invoice. HMRC says only VAT-registered businesses can issue VAT invoices, and VAT records include invoices issued and received. HMRC also says VAT records generally need to be kept for at least six years. Check the current rules for your business and take advice from your accountant where the tax treatment is unclear.
Some operators and sites may use self-billing, where the customer prepares the supplier’s invoice. HMRC’s self-billing guidance says both parties must be VAT registered for a VAT self-billing arrangement, must agree to it and must meet the stated conditions. A normal vending collection receipt should not be presented as a self-billed VAT invoice unless the arrangement and document meet those requirements.
The safest process is to decide, with professional advice where needed, which document is the collection record, which is the payment statement and which is the tax invoice. Name them accurately and keep the references linked.
Review exceptions instead of recalculating everything
A monthly commission check should concentrate on changes and anomalies. Look for collections using a newly changed rate, missing statements, unusual corrections, machines moved between sites and payments that do not match the saved collection record.
Keep personal data to what the job requires. A site record normally needs business contact details and an audit trail, not informal comments about individual staff. The Information Commissioner’s Office lists data minimisation, accuracy and storage limitation among the UK GDPR principles.
How VendMetrix handles commission records
VendMetrix supports machine-level commission settings, including tiered rates and charity contribution models. During a cash-up, the operator enters the count and the system calculates the commission from those settings. It can print a commission receipt to a compatible pocket Bluetooth thermal printer or email the receipt. Site owners can also use a portal to check commission history.
Corrections are kept in an audit trail, which helps preserve the link between the original collection and any later change. These are confirmed current capabilities on the VendMetrix features page.
Software cannot decide the commercial or tax terms for you. It can make sure the agreed machine settings, completed cash-up, receipt and later report come from the same record. That is what makes a commission history easier to check when a site calls months after the collection.