Vendor Commissions

Nehock · ‎December 28, 2017

We are a manufactering rep and receive commissions from our vendors when our customers order direct from our vendors; what is the proper way to record that in qbd? We also recieve buy/resell orders as well and track inventory.

Rustler · ‎December 30, 2017

@Nehock wrote:
How would I keep track of the commission owed to me if I just do a sales receipt when the commission check comes in?

Well see you didn't mention that you wanted to do that <smile>

to do that you need some items

a sales item that links to income
as sales item that links to the sales dicount income account

line one, list the sales item and the full amount

line two, list the sales dicount item ...

and here it gets screwy in QB

Let's say you get a 10% commission, as the rate for the sales discount item enter a negative .90 (-0.90) ... then on the sales receipt where you use this item enter the total sales amount as the QTY, save

when you get the commission check, receive the payment against this invoice.

View solution in original post

Rustler · ‎December 29, 2017

The easiest way is to create an income account commission income, and a service item named the same which is linked to that income account

When you get the commission check, use a sales receipt and the commission income item to record the receipt

Nehock · ‎December 29, 2017

How would I keep track of the commission owed to me if I just do a sales receipt when the commission check comes in?

vpcontroller · ‎December 29, 2017

When you create a sales receipt, instead of using the deposit to the bank account, you can also create/use commission due from as other current assets type account. when you receive a separate commission check payment, apply to that account.

Rustler · ‎December 30, 2017

@Nehock wrote:
How would I keep track of the commission owed to me if I just do a sales receipt when the commission check comes in?

Well see you didn't mention that you wanted to do that <smile>

to do that you need some items

a sales item that links to income
as sales item that links to the sales dicount income account

line one, list the sales item and the full amount

line two, list the sales dicount item ...

and here it gets screwy in QB

Let's say you get a 10% commission, as the rate for the sales discount item enter a negative .90 (-0.90) ... then on the sales receipt where you use this item enter the total sales amount as the QTY, save

when you get the commission check, receive the payment against this invoice.

LydiaMAC · ‎July 28, 2022

@Rustler, if you are doing a Sales Receipt, it asks for a Customer name. For my purposes, this commission check may span across several customers (and I don't always know how much of the commissions apply to each one-and for my purposes, I am not sure I care which) Is there a different way to do this? (Have created the sales item and the corresponding income type). Sales tax will not be applied, since it was taxed before it came to me. It should just reflect on my income statement. Hope I am describing this in such a way that makes sense. Any help will be appreciated.

Thanks

@Rustler wrote:
The easiest way is to create an income account commission income, and a service item named the same which is linked to that income account

When you get the commission check, use a sales receipt and the commission income item to record the receipt

LydiaMAC · ‎July 28, 2022

Found my answer in one of your other posts with a similar situation:

https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/i-would-create-a-service-it...

Thank you!

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