My Client has Quickbooks Plus Online and Quickbooks Online Payments.
I have a Client who pays commissions to a consultant (non employee) based on the amount of product that is sold. The Consultant is paid the commission once the invoice has been paid. I need to set this up in Quickbooks Online and there appears to be several different ways to do this.
My thoughts - when my client receives a Purchase Order from their client, I need to Credit an Accounts Payable account and Debit COGS. Then when the invoice is paid I will Debit Accounts Payable and Credit the Bank Account.
But, when I set the Consultant up as a Vendor, I can't select the COGS account, only an expense account. Should I create an Expense Account "Consulting Commissions" then create a journal entry to move it to COGS each month?
When paying the Consultant, should I select "Expense" or "Check" from the drop down menu?
