Allocating Invoice overpayment to invoice and commission income

Hello fwiginton, 

QuickBooks Online is a dynamic program that simplifies the way you manage your transactions. I'll be glad to point you in the right direction so you can get the resolution you need in a timely manner. 

Making sure you're recording your transactions properly is an essential step for maintaining clean books. Based on what you've described, I'd recommend reaching out to an accounting professional for expert advice on how to record the transactions. If you're not in contact with a professional, don't worry, you can search for one using this link here.

I'll also leave this question open in the Community so other accountant users can share their advice. Otherwise, feel free to ask other questions, I've got your back. 

Thanks for the response. This isn't an accounting question. It is a software question. How do I make the software divide the payment into two transaction to allocate one part of the payment to the invoice and the other part to another income account (commission income)?

Hello fwiginton. Glad to hear back from you again. A workaround I suggest is creating a service item for the commission and selecting an income account for it. Thi article here shows you how to create a service item in QuickBooks. I recommend contacting an accounting professional to learn more about the right income account to use. Otherwise, here are the steps that show you how to add the service item:

1. Navigate to Sales.
2. Click on Products and Services.
3. Select New.
4. Click Service.
5. Enter the name (Commission) and other required info.
6. Click on Save and close.

Going forward, you can add this service item as a line item to your sales forms. This means you can include the $5000 plus the $3000 as line items on your sales forms. Let me know if these steps help you divide your income from your client. Otherwise, I encourage you to consult an accounting professional for additional advice on this. 

I am having the same quandry.  The difference for me is that the amount of commission/reserve is unknown until the payment is remitted direct into our bank account.

1.  I bill out $100 to the customer

2.  Financing is arranged by us & the lender adds our commission or reserve to the payment made to us

      They pay $132.00

3.   When I enter as Receive Payments, (I end up with overpayment which goes to a credit for the customer)     & subsequently make deposit from Undeposited Funds for $100.00

4.  Now I have a credit in that customers account ($32) which is actually cash that have been deposited in our bank account.

How do I deal with this?

Hi there LeeMcQ,

Thanks for reaching out about your customer balance. QuickBooks Online is a great tool able to help you keep track of sales and expenses so you know the amount of profit for your company. I can point you in the right direction for assistance in entering these transactions.

To know how you should be entering these transactions including the overpayment, as well as the part to reduce the customer credit, I recommend reaching out to your accountant. Their expertise will be able to assist you in making sure all your accounts are correctly affected by the transactions so your books are balanced. You can invite your accountant by going to the My Accountant section and entering their contact details. You can also find an accountant near you by clicking on the Find a pro to help button in that tab.

If you have any other questions, feel free to reach out here.