Record commission paid as worker at store.

MaryJohn56 · ‎August 08, 2020

Hope someone can help me figure out how to set this up in the general ledger. My client owns spa equipment and works out of a spa with that equipment as a contractor essentially. She has her own business which is incorporated. I am setting up her books in QBO. She gets paid 70% of what was rung in the cash register at the spa plus 5% GST.

I believe somehow the 30% that the spa keeps could/should be recorded as an expense. Am I correct, or is the 30% just ignored?

Should an invoice be generated to equal the cheque she receives?

Thanks for your help.

LeithG · ‎August 14, 2020

HI MaryJohn56:

If your client receives the cash and the full GST amount from her customers, and remits 30% of the sale as a rental or commission fee, you'd want to record the full amount as revenue so it jives with the GST collection and remittance to the government, and the 30% as an expense against the revenue.

If the business she's paying the 30% to is responsible to pay the GST on their portion of the sale the recording would be slightly different.

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Record commission paid as worker at store.

Record commission paid as worker at store.

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