Selling for other vendors and only reiving a commission fee

[Briolo]

When i sell other vendors merchandise and only take a commission fee what type of account should the intial sale be put in, a income account? or a liability accounr or?

[Rasa-LilaM]

Welcome to the Community space, Briolo.

I'd love to help in tracking your commission in QuickBooks.

To input the initial sale, you’ll have to use the income account to track it in your account. I'll provide you with detailed instructions on how to create the commission item.

1. Go to the Gear icon at the top.
2. Select Products and Services, then click on the New button.
3. Choose Service.
4. In the Name field box, enter commission.
5. Fill in the necessary field boxes.
6. Click on Save and close.

Next, let’s create the income account. The steps are simple and easy.

Here's how:

1. Go to the Gear icon at the top.
2. Choose Chart of Accounts, then click on the New button.
3. In the Account Type drop-down, select Income.
4. Fill in the necessary field boxes.
5. Click on Save and close.

Every business is unique and has different ways of handling finances. I recommend consulting with your accountant to help determine the specific income account to track your commission.

For future reference, I'm adding a link on how to track sales commissions in QuickBooks Online.

That should answer your concern for today. If you have any follow-up questions, leave a comment below. I'll get back to assist you further. Enjoy your day.

[Rustler]

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@Briolo wrote:

When i sell other vendors merchandise and only take a commission fee what type of account should the intial sale be put in, a income account? or a liability accounr or?

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It depends, would you explain the concept in more detail?

If you sell the item, are you being paid the full amount and then ordering it for less, that is called drop shipping?

Are you passing the order and the payment to the vendor and later he pays you a commission?

[Kagan Sari]

Hi Rustler , 

 We are passing the order and the payment to the vendor and later he pays you a commission. We are sending comission  invoice , also we are buying product from them. We are just using these way for international selling.  How can i record all of transactions at the quick books  ?

[Rustler]

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@Kagan Sari wrote:

Hi Rustler , 

 We are passing the order and the payment to the vendor and later he pays you a commission. We are sending comission  invoice , also we are buying product from them. We are just using these way for international selling.  How can i record all of transactions at the quick books  ?

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Take the payment and post it to a liability account

make the payment to the vendor and use that same liability account as the expense (reason) for the payment

create and send your invoice for the commission amount

ordering from the vendor is the same as ordering anything else and has nothing to do with the pass through ordering

[Kagan Sari]

Hi Rustler, 

Thank you for your answer. 

I deposit all of payment trough liability account but I am not able to use vendor as customer. How can i track comission payment ?  because of we are taking all of payment trough paypal and then we are taking our comission from paypal amount and sending remain amount to them.

[Charies_M]

Hello there, Kagan Sari.

Thanks for checking in with us. Allow me to join this thread and share some information on how to handle this.

You create a Clearing Account to transfer the money from your accounts payable to accounts receivable. This account is use to move money from one account to another account when you cannot move the money directly.

Here's an article to learn more about setting up a clearing account: Set up a clearing account.

Once done, you can deposit the payment to the clearing account posting to a liability account (vendor portion) then, Accounts Receivable for the customer.

Here's how:

1. Go to Banking.
2. Click Make Deposits.
3. Choose Clearing Account as your Deposit To account.
4. Use Accounts Receivable for the customer account.
5. Enter other necessary information.
6. Click Save & Close.

To add a vendor as a customer, you should use a different name. Then, you create an invoice and apply the credit by receiving payment.

Now, you write a check a from clearing account and choose your bank account as your posting account.

1. Go to Banking.
2. Click Write Checks.
3. Enter the necessary information and choose Clearing Account as your bank account.
4. Click Save & Close.

There you go. If there's anything else I can help you with or questions about this, feel free to get back to me.

[vhsbi]

We have a vending machine company in our office building who has started paying us on a commission for the sales from the vending machines. We do not own the products sold and do not pay the vendor for providing  their service. How do I record this in QuickBooks Online?