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BillM
Level 2

Recording Sales Commission Received

In our art gallery,  all artist sales are on a 65/35 revenue split with the gallery.  Each artist can set a discount level they are willing to give in order to close a sale.  We just had a $600 sale.  Without a discount, the transaction would have been recorded as: 

Bank Deposit:                                $600

Artist Jane Doe Sales Payable:  $390

Gallery Commission Income:     $210

 

If the sale was made with a 10% discount, I want to track each artist so I set up:

Gallery Discounts Given:

     with a sub  Jane Doe Discounts Given:  -$21

I'm stuck on the best way to adjust the Artist Sales Payable.  Should I just make another entry that is simply:  Artist Jane Doe Sales Payable:  -$39

or is there a way to have an account to track the discount from the artists sales separately without having to manually figure out how much to write the check for when the artist is due for payment?

2 Comments
Rustler
Level 15

Recording Sales Commission Received

Since this type of sale does not require 1099 reporting, that makes it much easier

 

on the sale, the invoice or sales receipt would look like this

art, 600 (posting to a sales liability account)
artist discount, -21 (posting to the same sales liability account)

total, 579

then make your deposit

 

Write your check to the artist
line one, sales liability account, 579
line two, commission income account, -202.65 (35% of 579)

the check nets to 376.35

Julin
Level 1

Recording Sales Commission Received

Hi, I have a question on Commission too. 

My Vendor is due to pay me $10,000 as commision. However I am yet to pay them (my AP) $6,000 for the purchases I made from them. So my AP has  issued me a cheque of $4,000 clearing all the dues. How do I enter this transaction in quickbooks without creating issues in Bank reconciliation?

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