Greetings, @d-laxman.
It’s my pleasure to help record these transactions in QuickBooks.
First, you need to set up a service item called “Commission earned” with Commission Income as posting Income and Expense account. Here’s how:
- Go to the Gear icon and select Products and Services.
- Click the green New button.
- Choose Service.
- Type in Commission earned on the Name field.
- Enter other necessary information.
- Place a check mark next to I purchase this product/service from a supplier.
- On the Income account and Expense account drop-down, select Commission Income.
- Hit Save and close.
Right after, create a bill from the invoice sent by the supplier together with your sales commission. Let me show you how:
- Go to the Plus icon and select Bill.
- Select the supplier from the list.
- On the Item Details section, select the product you received from the supplier in the first Product/Service line item.
- Enter Amount and VAT.
- Choose Commission Earned on the second line item and enter the commission amount and VAT.
- Hit Save and close.
Posting a negative value on the bill using the commission service item will show your sales income on the P&L report.
Once done, pay the bill to record the exact amount to be collected by the supplier. See how to enter and pay bills for more information.
You may also check out the following articles for reference:
That should get you pointed in the right direction.
Keep me updated on how that goes for you. I’m always here to keep helping. Have a good one!
