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Senior Explorer *

Supplier, also a Customer for invoicing sales commission--how to reduce bill payment by commission invoiced

We are the US distributor of a product produced overseas. For some legacy customers, we must buy goods from supplier and resell to customer, at same price. Then we invoice the supplier for our sales commission. Quickbooks desktop doesn't allow us to invoice a supplier/vendor, so  we set up both vendor and customer entities for this supplier. 

 

However, now the supplier is asking us to subtract the sales commission from their bill payment, and also send them an invoice for that sales commission.  

 

How can I create this invoice, and use the eventually "received" payment to reduce the vendor bill?

 

For example. Customer orders $1000 product. We purchase and deliver $1000 product, invoice the customer $1000, then create a 10% commission $100 invoice to supplier's customer account, mark it paid and use that to reduce payment on the $1000 vendor bill, to $900.

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Best answer 02-18-2019

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Moderator

Re: Supplier, also a Customer for invoicing sales commission--how to reduce bill payment by commi...

Hey there, sevans.

Let me help you with pay an invoice to reduce the vendor bill in QuickBooks Desktop.

 

A barter bank account is used to post both sides of a traded transaction. For instance, you might trade or exchange something you sell for something a client sells. Recording a barter transaction in QuickBooks is a process that requires a few one-time setup steps that can then be used to record any barter or trade transaction you may have with your customers or vendors.

 

Make sure that the barter's partner name is both listed as a vendor and a customer. For example, you can either use Intuit Smith as the customer name and then Intuit L. Smith as the vendor name.

 

To set up a barter bank account:

 

  1. Click List at the top menu bar, then choose Chart of Accounts.
  2. Press CTRL+N on your keyboard to create a new account.
  3. Choose Bank and hit Continue.
  4. You can enter Barter Bank Account as the name and click Save.

To create an invoice for the barter transaction:

 

  1. Customers at the top menu bar and select Create Invoice.
  2. Fill out the invoice as you normally would and then Save it.
  3. Customers at the top menu bar and select Receive Payments.
  4. Choose the barter Customer.
  5. From the Payment Method drop-down menu, select Add New and then enter "Barter" in the name field.
  6. Choose Save.
  7. Select Deposit To: choose the barter bank account.
  8. Hit Save.

To enter a bill for a barter transaction:

 

  1. Click Vendors at the top menu bar and select Enter Bills.
  2. Fill out the bill as you normally would and then Save it.
  3. Click Vendors at the top menu bar and select Pay Bills.
  4. From the Payment Account drop-down menu, select the barter bank account.
  5. Select the bill you want to pay
  6. Enter the amount of the bill payment and then hit Save.

By following these steps, you'll be able to pay the invoice and reduce the vendor bill.

 

Let me know if you have additional questions about reducing vendor bills. I'm always here to help.

3 Comments
Highlighted
Moderator

Re: Supplier, also a Customer for invoicing sales commission--how to reduce bill payment by commi...

Hey there, sevans.

Let me help you with pay an invoice to reduce the vendor bill in QuickBooks Desktop.

 

A barter bank account is used to post both sides of a traded transaction. For instance, you might trade or exchange something you sell for something a client sells. Recording a barter transaction in QuickBooks is a process that requires a few one-time setup steps that can then be used to record any barter or trade transaction you may have with your customers or vendors.

 

Make sure that the barter's partner name is both listed as a vendor and a customer. For example, you can either use Intuit Smith as the customer name and then Intuit L. Smith as the vendor name.

 

To set up a barter bank account:

 

  1. Click List at the top menu bar, then choose Chart of Accounts.
  2. Press CTRL+N on your keyboard to create a new account.
  3. Choose Bank and hit Continue.
  4. You can enter Barter Bank Account as the name and click Save.

To create an invoice for the barter transaction:

 

  1. Customers at the top menu bar and select Create Invoice.
  2. Fill out the invoice as you normally would and then Save it.
  3. Customers at the top menu bar and select Receive Payments.
  4. Choose the barter Customer.
  5. From the Payment Method drop-down menu, select Add New and then enter "Barter" in the name field.
  6. Choose Save.
  7. Select Deposit To: choose the barter bank account.
  8. Hit Save.

To enter a bill for a barter transaction:

 

  1. Click Vendors at the top menu bar and select Enter Bills.
  2. Fill out the bill as you normally would and then Save it.
  3. Click Vendors at the top menu bar and select Pay Bills.
  4. From the Payment Account drop-down menu, select the barter bank account.
  5. Select the bill you want to pay
  6. Enter the amount of the bill payment and then hit Save.

By following these steps, you'll be able to pay the invoice and reduce the vendor bill.

 

Let me know if you have additional questions about reducing vendor bills. I'm always here to help.

Senior Explorer *

Re: Supplier, also a Customer for invoicing sales commission--how to reduce bill payment by commi...

@RoseMarjorieA - thanks, seems like a good solution. However when setting up a Bank account, I do not have a Detail Type dropdown to select Cash on Hand. See attached. Using QB 2016.

 

Also, you mention making names match, but I'm dealing with companies not individuals. What field must be matching or similar? Here's our current structure:

  • Vendor Name: Intuit;  Company Name: (blank)
  • Customer Name: Intuit Commission;  Company Name: (blank)

Thanks!QB2016-Bank_Capture.JPG

Moderator

Re: Supplier, also a Customer for invoicing sales commission--how to reduce bill payment by commi...

Thanks for getting back to me, sevans.

I appreciate the screenshot you've provided. Let me help you get this straightened out.

 

I've updated the steps above. You can click Continue after choosing Bank. Regarding the names, it doesn't matter on how you name the customer or vendor as long as you know who to pay and who to bill.

 

You may find this article helpful: https://quickbooks.intuit.com/community/Income-and-expenses/Create-an-invoice-in-QuickBooks-Desktop/....

 

For additional help with QuickBooks, feel free to reach out to our Customer Care Team. You can get our most-up-to-date number here:

 

  1. Go to: https://help.quickbooks.intuit.com/en_US/contact.
  2. Choose your QuickBooks Product.
  3. Select your QuickBooks version.
  4. On the Contact Us page, click a topic.
  5. Click on the Get Phone Number button to see the support number.

I'm still here if you have additional questions. Have a good one.