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Jens Pen
Level 2

Contract Salesperson on Commission

Hi. I have a salesperson (and will be hiring more) working in a contract position. He will be selling our products/services. We want to pay them on 1st and 15th of the month. They are working on a purely commission basis and will be receiving 20% of the money received from sales they make -- so if the client signs up for installment payments and then flakes, I can only pay them the 20% of the money received from the sale, or some similar event occurs.

 

  • How do I keep track of who sells what (and therefore who we owe and how much we owe them)?
  • Can I arrange it so they're automatically paid on the 1st and 15th for the money received from their sales
  • Or should I have them invoice me?
  • Is there anything else I should be aware of and make provisions for in this circumstance?
Solved
Best answer January 17, 2024

Best Answers
Sherrie_F
QuickBooks Team

Contract Salesperson on Commission

I can help you manage your sales in QuickBooks Online, Jens Pen.

 

QuickBooks Online (QBO) currently does not have a calculation feature for sales commissions. However, there is a way for you to track your sales by employee, sales rep, etc. using its two tracking features: Class Tracking and Location Tracking.

 

To turn on the Class Tracking or Location Tracking features:

 

  1. Select the Gear icon a the top then Account and Settings (or Company Settings.)
  2. Select Advanced from the left navigation menu.
  3. Choose the pencil icon next to Categories.
  4. Put a check mark on the Track Classes or Track Locations checkmark boxes.

 

Once done creating your Class or Location list, you'll then have either of the fields when recording your transactions either through writing a check or in a way that works best for you in QBO. To track your sales accordingly, you can run the Profit and Loss by Class or Location and Sales by Class/Location reports.

 

Since the ability to automatically pay the contractors on the 1st and 15th is unavailable, you may have to do it manually.

 

Lastly, I've added this article you can browse through on how to change your accounting method:  Choose between cash and accrual accounting methods in QuickBooks Online.

 

Feel free to reach us again if you have any other concerns about managing your sales. Have a lovely day, and stay safe.

View solution in original post

1 Comment 1
Sherrie_F
QuickBooks Team

Contract Salesperson on Commission

I can help you manage your sales in QuickBooks Online, Jens Pen.

 

QuickBooks Online (QBO) currently does not have a calculation feature for sales commissions. However, there is a way for you to track your sales by employee, sales rep, etc. using its two tracking features: Class Tracking and Location Tracking.

 

To turn on the Class Tracking or Location Tracking features:

 

  1. Select the Gear icon a the top then Account and Settings (or Company Settings.)
  2. Select Advanced from the left navigation menu.
  3. Choose the pencil icon next to Categories.
  4. Put a check mark on the Track Classes or Track Locations checkmark boxes.

 

Once done creating your Class or Location list, you'll then have either of the fields when recording your transactions either through writing a check or in a way that works best for you in QBO. To track your sales accordingly, you can run the Profit and Loss by Class or Location and Sales by Class/Location reports.

 

Since the ability to automatically pay the contractors on the 1st and 15th is unavailable, you may have to do it manually.

 

Lastly, I've added this article you can browse through on how to change your accounting method:  Choose between cash and accrual accounting methods in QuickBooks Online.

 

Feel free to reach us again if you have any other concerns about managing your sales. Have a lovely day, and stay safe.

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