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jhit
Level 1

After I have recorded an invoice, how do I account for a referral fee that will be paid when the invoice is paid? (Classes are already being used.)

 
3 Comments 3
Catherine_B
QuickBooks Team

After I have recorded an invoice, how do I account for a referral fee that will be paid when the invoice is paid? (Classes are already being used.)

You can create a referral fee item, jhit. 

 

After creating an invoice, you can create a non-inventory or service item using an expense account. Then, create a credit memo using that item. Once the customer pays the invoice you can link both the invoice and credit memo. I'll show you how:

 

Create a Credit Memo

  1. From the +New button, click Credit memo.
  2. Select the correct customer and under the Product/Service column, click +Add New.
  3. Choose and select either Non-inventory or Service.
  4. Enter a name something like Referral Fee.
  5. Under the Income account drop-down, add a new expense account to use for the referral fee or use an existing one. 
  6. Click Save and close
  7. From the Credit Memo window, enter the referral amount.
  8. Click Save and close

Link Invoice and Credit memo

  1. Go to the +New button again and select Receive payment.
  2. Select the customer.
  3. Check the correct invoice and Credit Memo under the Credits section.
  4. Once done, click Save and close.

The total amount of the actual received payment is now deducted from the referral fee. 

 

If there's anything else you need help you, just leave me a reply. You take care and stay safe!

SherBear8512
Level 1

After I have recorded an invoice, how do I account for a referral fee that will be paid when the invoice is paid? (Classes are already being used.)

I receive referral fees or call it commission s from a vendor on.customer orders. How do I record these payments in Quicknooks?

Charies_M
Moderator

After I have recorded an invoice, how do I account for a referral fee that will be paid when the invoice is paid? (Classes are already being used.)

I've got you covered today, SherBear8512.

 

I'm here to guide you on how to record commissions from vendors in QuickBooks Online (QBO).

 

The first step is to create an income account for the commission. Please follow the steps below:

 

  1. Go to the Accounting tab and choose Chart of Accounts.
  2. Click New.
  3. Enter the necessary information. Make sure to choose Income as the Account Type. For the Detail Type, check with your accountant to be more accurate. (See sample screenshot)
  4. Click Save and Close.

Scan through this article for more information about adding accounts to your Chart of Accounts in QBO: Add an account to your chart of accounts in QuickBooks Online

 

Next is to create a service item and linked it to the income account you've previously created.

 

Here's how:

  1. Go to the Gear icon and choose Products and services.
  2. Click New. Select Service.
  3. Fill in the necessary information. (From the Income account, choose the one you've recently created).
  4. Click Save and close.

Here's an article made handy to be more familiar with managing items in QBO: Add, edit, and delete items.

 

Once you get the commission check, you can create a Sales Receipt and add the Commission income item.

 

Here's how:

 

  1. Go to the +New icon and choose Sales Receipt.
  2. Enter the necessary information. (Make sure to add the commission item on the column).
  3. Click Save and close,

To help you with future tasks and tips when using QBO, you might want to visit our Help Articles.

 

Get back to me if you need help with something else. I'd be happy to assist. Enjoy the rest of the day!

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