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Frequent Contributor *
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How to invoice a realtor for their monthly fees?

I need to charge our realtors a monthly fee.  Do I set them up as a Customer and create an invoice?  If so, how do I do that?  And then how do I apply their payment?  It will either be automatically deducted from their commission check or if they can write a separate check.

 

Thanks in advance!

Best answer 01-10-2019

Accepted Solutions
QuickBooks Team

Re: How to invoice a realtor for their monthly fees?

You're most welcome, calicoellie!

 

I'd be happy to guide you on how to apply the payment to the invoice if they pay you that way.

 

To clarify, are you referring to the deposit method? If so, we just need to enter Accounts Receivable in the From Account, instead of an income account. This way, QuickBooks will consider it as a credit that we can apply to the invoice. Let me show you how this works:

 

To enter the deposit using Accounts Receivable

  1. From the Banking menu, select Make Deposits.
  2. Enter the Date and the necessary details in the following fields:
    Received From: Enter the name of the realtor.
    From Account: Choose the Accounts Receivable account.
    Memo, Chk NoPmt Method, and Class: You can leave these fields blank. Although, if these details are necessary, then you may go ahead and enter them.
    Amount: Total amount of their monthly fee.
  3. Click Save & Close.

Accounts Receivable.PNG

To apply the deposit to the invoice

  1. From the Customers menu, select Receive Payments.
  2. Click the Discounts and Credits icon.
  3. In the Credits tab, select the Available Credits (deposit).
  4. Click Done, then Save & Close.

Apply Deposit.PNGApply Deposit 2.PNG

There you go. You'll be all set with the deposit and the invoice after following these steps. We also offer this information in our guide on how to resolve common issues when applying a payment towards an invoice.

 

Before you go, I just want to let you know that I've also updated my previous post. I reviewed it and noticed that I wasn't able to include the process on how to receive the payment after creating invoices.

 

Please know that I'm always here to provide further assistance and answer any questions that you may have, I want to ensure your success. Thanks for coming to the Community and take care.

8 Comments
QuickBooks Team

Re: How to invoice a realtor for their monthly fees?

You've come to the right place, calicoellie.

 

It would be my pleasure to share some insight on how to invoice your realtors and get you on the right track.

 

Thanks for the detailed explanation. Based on what you've mentioned, you could set them up as customers so you can invoice them for their monthly fees. Let me walk you through the steps on how you can do it:

  1. From the Customers menu, select Customer Center.
  2. Click the New Customer & Job drop-down menu, then New Customer.
  3. Enter the name of the customer.
  4. Click OK and repeat these steps for the other realtors.

 

After creating their profile and you're still in the Customer Center window, here's how to enter an invoice:

  1. Click the New Transactions drop-down menu.
  2. Select Invoices.
  3. Enter the Date and Invoice number.
  4. Fill in the following information on these fields:
    - Item Code: Click the drop-down arrow, then choose the right service item. If you don't have one yet, then select Add New and set it up.
    - Amount: Enter the monthly fee amount.
  5. Click Save & Close.

Just a heads up, another way to apply their payment is to enter it as a deposit if they write you a separate check. Here's how you can record it:

  1. From the Banking menu, select Make Deposits.
  2. Enter the Date and the necessary details in the following fields:
    - Received From: Enter the name of the realtor.
    - From Account: Choose the correct Income Account.
    - Memo, Chk No, Pmt Method, and Class: You can leave these fields blank. Although, if these details are necessary, then you may go ahead and enter them.
    - Amount: Total amount of their monthly fee.
  3. Click Save & Close.

For more information about these processes I would recommend following these articles:

That should do it! I'm confident that with these resources you'll be able to invoice your realtors for their monthly fees like a pro in no time.

 

You're always in good hands here in the Community. If you need more help with this please don't hesitate to reach out to me again. Wishing you and your business all the best.

Frequent Contributor *

Re: How to invoice a realtor for their monthly fees?

Thank you!  Very helpful.  

How do I apply a check to an invoice if they pay that way?

QuickBooks Team

Re: How to invoice a realtor for their monthly fees?

You're most welcome, calicoellie!

 

I'd be happy to guide you on how to apply the payment to the invoice if they pay you that way.

 

To clarify, are you referring to the deposit method? If so, we just need to enter Accounts Receivable in the From Account, instead of an income account. This way, QuickBooks will consider it as a credit that we can apply to the invoice. Let me show you how this works:

 

To enter the deposit using Accounts Receivable

  1. From the Banking menu, select Make Deposits.
  2. Enter the Date and the necessary details in the following fields:
    Received From: Enter the name of the realtor.
    From Account: Choose the Accounts Receivable account.
    Memo, Chk NoPmt Method, and Class: You can leave these fields blank. Although, if these details are necessary, then you may go ahead and enter them.
    Amount: Total amount of their monthly fee.
  3. Click Save & Close.

Accounts Receivable.PNG

To apply the deposit to the invoice

  1. From the Customers menu, select Receive Payments.
  2. Click the Discounts and Credits icon.
  3. In the Credits tab, select the Available Credits (deposit).
  4. Click Done, then Save & Close.

Apply Deposit.PNGApply Deposit 2.PNG

There you go. You'll be all set with the deposit and the invoice after following these steps. We also offer this information in our guide on how to resolve common issues when applying a payment towards an invoice.

 

Before you go, I just want to let you know that I've also updated my previous post. I reviewed it and noticed that I wasn't able to include the process on how to receive the payment after creating invoices.

 

Please know that I'm always here to provide further assistance and answer any questions that you may have, I want to ensure your success. Thanks for coming to the Community and take care.

Frequent Contributor *

Re: How to invoice a realtor for their monthly fees?

This is perfect.  Thank you!

Established Community Backer ***

Re: How to invoice a realtor for their monthly fees?

@AldrinS

 

Please Learn from this input. You have it Backwards. When a customer Pays, you use Receive Payment. That flows to the bank account directly or is grouped into UF. That's when you use Make Deposit.

 

You don't jump to Make Deposit and put AR there. You overlooked the entire Receive Payment function for processing a customer payment is the First Step, not later.

 

Let's review that this is both a vendor relationship and a customer relationship.

 

The Vendor Name has to have Gross Paid to them on the check details, even though the Banking will be Net. That's because of the Required reporting as 1099-Misc.

 

"It will either be automatically deducted from their commission check"

 

This is Barter. Make a Bank account and name it Barter.

 

Use Write Check to John Jones (Vendor). List the Gross or Full Commission owed to them. Now you are ready to Receive The Payment, for the amount their Customer Name version owes you against the invoice for charges. Deposit this to Barter Bank.

 

You see the Difference here is what you owe them, in reality. In the real checking account, "Write Check" to their Vendor Name and on the expenses tab, enter the Barter Bank and pay them this Balance.

 

Now the Barter Bank = 0.

 

"or if they can write a separate check."

 

This is just like any Customer Payment = Customers menu > Receive Payment. Apply it to the open invoice.

Frequent Contributor *

Re: How to invoice a realtor for their monthly fees?

Thank you for your help.  I'm new at this so thank you for your patience in advance. 

 

Another question...should I be sending them an Invoice or Statement for their monthly dues?  Or an invoice for signs, biz cards, etc and a statement for monthly dues?  If the later, how do I 'link" them both back to John Jones (vendor)?  Or am I completely off base?

 

Thank you again,

Highlighted
QuickBooks Team

Re: How to invoice a realtor for their monthly fees?

Hello there, calicoellie.

 

It depends on which one is more convenient for you, if it's sending monthly invoice dues or an invoice for signs, biz cards, etc and a statement for monthly dues.

 

On the other note, If you wish to link it to a vendor, you can add the customer's name on the bills and expenses. If it's billable, you can mark it as billable. When you enter bills, there's a section to enter customer name and a check mark box for billable.  Select the customer name and mark it billable.

For additional help, feel free to reach out to our QuickBooks Desktop Support​. They'll be able to guide you through the whole process.

Please know that I'm always here to help if you have any other QuickBooks concerns, just add a post/comment below. 

Established Community Backer ***

Re: How to invoice a realtor for their monthly fees?

You are not Linking the Vendor Name: "If the later, how do I 'link" them both back to John Jones (vendor)?"

 

These are Customer Activities. When you pay for 5 signs for 5 different agents, you enter the split details as Billable to each agent using their Customer Name on these details. That is Billable to each of them.

 

You can use Statement Charges with the Add Time & Costs function, or Invoicing. Statement Charges bypass the use of an invoice, so no ability to include "items that calculate" such as Sales Taxes, markups, discounts.