Go to Admin > Stores > Edit > General > Store Commission Settings.

 Stores or restaurants can now be onboarded for two different commission schemes:

When restaurants want to link items at "Menu Price"
When restaurants want to link items at "Above Menu Price"

At Menu Price

When a restaurant links the items at the menu price, the commission calculation is as follows:
CommissionAmount = ItemPrice / 100 x ItemCommissionRate
Example: If the item price is: 220, and the commission for that particular item is 12%, then, the commission amount of the item becomes:
12/100 x 220 = 26.4

At Above Menu Price

When a restaurant links the items at the above menu price, the commission calculation is as follows:
CommissionAmount = ItemCommissionRate - (ItemCommissionRate / (1 + (ItemCommissionRate) / 100));
Example: If the item price is $220, and the commission for that particular item is 12%, then, the commission amount of the item becomes:
220 - (220 / ( 1 + 12 / 100 )) = 23.58

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When a store is set on the "Menu Price" commission scheme, the commission is calculated on the set item price.
Hence, the payout for the store will always be less than the total item price.

When a store is set on the "Above Menu Price" commission scheme, the item price is what the store will get as the payout. The price shown to the customer includes the commission amount.

Example:

If the store sets an Item Price at 220, and the Item Commission is set as 12%, then the price shown to the customer will include the commission charge, hence the price to the customer becomes: 246.4