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BigBoss
Level 1

Recording daily Sale/Service with Commissions

Hello, I hope everyone is doing well.

 

I am a little bit confused about what I should do. Here is my situation: I own a tailor shop and my worker takes daily commissions/wages. If for e.g. he does tailor work for £20, he keeps £5 and i take £15. I have an income account called Tailor Service so that account would increase £20 and so would my cash account. I want the £5 to be deducted from the £20 Tailor Service so that my income account for the Tailor Service shows £15 instead of £20 and deducting £5 from the cash account.

1 REPLY 1
Mark_R
QuickBooks Team

Recording daily Sale/Service with Commissions

Your confusion ends here, @BigBoss.

 

You have two options to record your sale/service with commissions in QuickBooks Desktop. First, you can add another line item for the commission of the service and enter a negative value. Second, you'll want to create a credit memo for the commission and apply it to the invoice. Let me guide you through the process.

 

Before we start, let's first create a service item for the commission to use when adding the commission on the invoice or creating the credit memo. Here's how:

 

  1. Go to the Lists menu, then select Item List.
  2. In the Item drop-down, click New.
  3. Select Service from the Type drop-down.
  4. Enter the item name as "Commission Service."
  5. Select an expense account from the Account drop-down.
  6. Click OK to save.1.PNG

 

Once done, you can now use the service item for a commission when creating the invoice or sales receipt. Here's how:

 

  1. Go to the Customers menu and select Create Invoices or Enter Sales Receipt.
  2. Choose the customer from the drop-down.
  3. In the first line, select the Tailor Service and enter £20 for the amount.
  4. In the second line, select the Commission Service and enter -£5.
  5. Click Save & Close.2.PNG

 

You can also create a credit memo for the commission service and apply it to the invoice.

 

  1. Go to the Customers menu and select Create Credit Memos/Refunds.
  2. Choose the customer from the drop-down.
  3. Select the Commission Service and enter £5 for the amount.
  4. Then, click the Use credit to apply to invoice.3.PNG
  5. Find the invoice you created to apply the credit.
  6. Click Save and Close once finished.

 

I'm adding these article for more details: 

 

 

That's it! Keep in touch if you need any more assistance with this, or there's something else I can do for you. I've got your back. Have a good day and take care always.

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