Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Connect with and learn from others in the QuickBooks Community.
Join nowLooking for the best way to record Agent commission on a customer invoice, identify what's due to the Agent and make a payment to the Agent.
We would like to pay commission to Agents that introduce business to us. The commission is paid as a percentage of the customer invoice value. It is paid to the Agent when the customer pays their invoice. Ideally, the amount the Agent is to be paid is proportional to the amount the customer pays i.e. if the customer pays 50% of the invoice the Agent would get 50% of the commission. Also looking for a way of reconciling/identifying the items that have been previously reconciled to the Agent.
On other systems I have used, the commission is posted to a suspense account and then proportionally moved to a payable account once the invoice is paid. I can't seem to find a way of processing a similar solution in Quickbooks.
Any help gratefully received.
Consider having a sales commission app to integrate with your QBD.
Can this be done in qb desktop? I guess there is a sales rep feature, but don't know how to set it up.
Hi there, RWIT_Simon_Franklin and Test2Go.
Thank you for visiting the QuickBooks Community. I'll ensure to share details on how to record agent commission on a customer invoice. Then, to make sure that you're able to find a report to reconciling/identifying the items that have been previously reconciled.
Yes, adding a sales rep and feature for this in QuickBooks Desktop is available. To start setting up this option, you can create or add a Sales rep in QBDT to record the commission of your sales agent. Then, make sure to assign the sales rep to your invoice.
Here's how:
Once done, go to the invoice page and make sure to click the Rep drop-down list. Then, select the specific sales rep to the invoice.
In case your invoice doesn't have a Rep field, you have the option to add it. Please follow the steps below.
Once your customer paid the invoice, the agent or rep associated with the entry will also automatically be paid.
On the other hand, you can always run a previous reconciliation report so you can review your past reconciliations. Then, identify the items that have been already reconciled to the Agent. You can click this article to see the steps on how to perform the process: Get reports for previous reconciliations in QuickBooks Desktop.
Please refer to this link to view different articles that provide topics about your company's income and customer transactions: Sales and customers.
Feel free to go back to this thread if you need anything else while working with sales entries. I'm always here to help. Have a good one.
Hi ChristieAnn
Thanks for your reply.
We're using the API to create the invoice with the relevant line items so i'm not sure how the Rep and specifying the amount of Rep commission fits into that.
Can you expand on this element of the reply "Once your customer paid the invoice, the agent or rep associated with the entry will also automatically be paid."
How is the rep automatically paid? And do the individual items get reconciled as paid? Does setting up as a rep automatically post into the vendor liability account and relevant expense account?
It might help if I provided more context. The company deals with Sub-Agents, these are organizations that would introduce the business and then get a commission payment based on the invoices raised.
For example ABC Limited is a sub-agent. They get 10% commission against the premium/invoice value. the commission is only payable to ABC limited when the customer pays the invoice. The commission is proportionally payable based on the amount of the invoice paid
In terms of line item postings before you mentioned Rep i was thinking of setting up the line items as follows:
Writtem Premium (income) $10,000
Sub Agent - ABC (liability) $1,000
Sub Agent Expense -$1,000
Due from customer $10,000
If i use the Rep function i'm assuming I don't need to split the line items out?
Thanks, sorry for all the questions
Kind regards
Simon
Hi there, @RWIT_Simon_Franklin.
Let me share with you some insights about an agent commission.
My colleague above mentioned that once your customer paid the invoice, the agent or rep associated with the entry will also automatically be paid. This means that the sales under that rep will be marked as paid, not the actual rep.
Once the sales have rep names already, you can now run a sales report then add a "Rep name" so you can have the commission for your employee calculated.
I'm adding this article as your guide in creating an account: Understand the chart of accounts in QuickBooks.
Feel free to get back to me by clicking the Reply button below if you have more questions about a rep commission. I'm always here to help.
Thanks, I'm still not clear on how the line items, vendors, or reps could work for me. What I'm trying to do is identify when money to an Agent becomes payable, be able to mark which items are payable then pay the sub-agent and reconcile the account.
If I sell a service that the sub-agent has introduced they get a commission. They're only due that commission once the customer has paid.
For example, the service is $1,000 out of that the sub-agent will get $100 but only once the customer has paid. To make this slightly more complicated the sub-agent will get the proportional amount that the customer has paid e.g. if the customer pays $500 the sub-agent is due $50. I'd like to see an account something like this
Customer Sub-Agent Commission Customer Balance Customer Paid Commission Payable Already Paid
Client A 100.00 1,000.00 0.00 0.00 0.00
Client B 100.00 0.00 1,000.00 100.00 0.00
Client C 100.00 500.00 500.00 50.00 0.00
I'd then want to mark the commissions that were payable and reconcile them as being paid. The following month I'd only see the outstanding commissions payable.
Customer Sub-Agent Commission Customer Balance Customer Paid Commission Payable Already Paid
Client A 100.00 1,000.00 1,000.00 100.00 0.00
Client C 100.00 500.00 1,000.00 50.00 50.00
I've looked at sales rep and vendor and just posting the item to a liability account but I can't seem to find out how to identify items that are due. I'm guessing I could do this via a report but then I'd still have to find a way of marking the items I wanted to pay. Ideally, I'd be looking for a function in the desktop application to help me do this.
Thanks
Simon
Thanks for adding more details about your concern, RWIT_Simon_Franklin.
Let me join the conversation and guide you in the right direction on how to track the line items.
As mentioned by my peers, you’ll have to set up the agents as sales reps in the company file. Then, create an invoice and manually compute the commission and add it to the entry.
Based on the details shared, I recommend consulting with an accountant for further assistance. They can guide you on how to handle this type of situation in QuickBooks Desktop (QBDT). This way, you’ll know when the items are due and keep your records in order.
Also, you can run the Sales by Rep Detail report to track the commissions. This will show sales income from each sales representative and lists the sales transactions that contributed to each sales total.
Let me share some links to help you in the future. These resources provide detailed information about personalizing customer or sales reports. From there, you’ll learn how to memorize statements, set up report preferences, etc.
You can also bookmark this article for additional resources: Set up commission payroll items and reports. It will guide you on how to track commissions paid to employees.
Feel free to visit the Community again if you need help with managing commissions and other QuickBooks concerns. I’m more than happy to lend a helping hand.
Hello, I've set the sales rep's up, but I also have products that are formulated by physicians that receive royalties on those products. Is there a way to set royalties up on certain products? I have set products into categories and was going to start messing around and looking to see if I can attach a sales royalty to those certain categories of products, but thought would ask here first.
Hey, @Roslynne.
Thanks for chiming in on this thread and asking questions about setting up royalties in QuickBooks Desktop.
I can see how beneficial this could be for you and your business. However, there isn't a way to set this up in QuickBooks Desktop.
I recommend working with your accountant to see about alternative accounting methods, based on how the business is ran, to make this work in QuickBooks.
Please come back and let us know what your accountant suggests. We're always here to have your back. Have a wonderful day!
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
For more information visit our Security Center or to report suspicious websites you can contact us here