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Level 2

How can I calculate the profit per invoice in order to pay commissions on profit?

Hi there,

 

I currently use quickbooks online and this is something that we have been trying to do for years!!!
We pay our sales reps based on profit per invoice (Selling price - cost of product).

We have been doing the profit liquidation for years in excel but we are completely tired of this. 

Is there any way to get the report of the profit per invoice in quickbooks online? Anyone there having this same issue and can help?

Thanks in advance for your time,

Andres

btw, I have tried:
*Sales by Class Summary (Each sales rep is in Class)
*Profit and loss by Class (But this one doesn't show the cost of good sold of the product the sales rep sold.

Solved
Best answer 12-20-2018

Best Answers
Highlighted
QuickBooks Team

How can I calculate the profit per invoice in order to pay commissions on profit?

Thanks for the great suggestions, @Pipe3001.

 

 Our goal is to make QuickBooks as user friendly as possible and a one-stop shop for all small business owners like you.

 

With QuickBooks Online, you have the ability to customize your invoice form which include adding the names of your Sales Representative. 

 

Here's how:

  1. Go to the Gear icon.
  2. Choose Accounts and Settings.
  3. Select Sales.
  4. Under Sales from content tab, click Custom Fields.
  5. Type in the name Sales Rep on the first box..
  6. Put a check mark on Internal and Public.
  7. Click Save.
  8. Hit Done.

Slide1.GIF

 

Once completed, you can now add the name of the sales rep everytime you create an invoice, sales receipt, estimate and credit memo.

 

Slide2.GIF

 

To run a report show sales per representative, here's how:

  1. Go to Reports.
  2. Choose Sales by Class Detail.
  3. Under group by, choose Sales Rep.
  4. Click Run Report.

 

 

Slide3.GIF

 

 

You also have the ability to change the name of the report from Sales by class detail to Sales by Sales Representative.

 

On the other hand, Profit and Loss is a type of report that shows a detailed view of your income, expenses, and net income (profit or loss). Shows individual transactions. On the P&L the number in COGS is displayed as positive ( debit) the P&L does not show debits and credits unless you drill down. In cash basis reporting for sales, COGS is only posted when the sale is paid.

 

Lastly, feel free to send your suggestions for improvement  and I'll do the same thing from my end.

 

Here's how:

  1. Go to the Gear icon.
  2. Select Feedback.
  3. Enter your request/product suggestion, then click Next.
  4. Click Skip and send message.
  5. Select Feedback as the Category.

New features are often added to this app, so be sure to keep an eye on our blog for announcements: https://intuit.me/2L2zqTv.

 

That should do it! Let me know if you have any other questions about running and customizing reports in QuickBooks Online. I'd be glad to help.

View solution in original post

12 Comments
Highlighted
Moderator

How can I calculate the profit per invoice in order to pay commissions on profit?

Hello Pipe3001,

 

We currently don't have a report that shows profitability per sales rep or profit by invoice. The work around is to export different reports in Excel and merge them. As I can see, you're already doing it. You did a great job on that. For now, I'll send your feedback to our development team for review.

 

On the other hand, we have a couple of expert members here that can jump into this thread. They might give pieces of advice how they can handle this kind of situation.

 

We appreciate your time, and we're happy to help you if you need anything else. 

Highlighted
Level 2

How can I calculate the profit per invoice in order to pay commissions on profit?

Hello,

thank you for your prompt response. That is a feature that we have been requesting for years and still QB won't come out with it, please submit it and try to prioritize it. I am sure there is a lot of companies with the same issue.

On the other hand, We are currently checking item by item of every invoice in order to identify the purchase cost and the sales price and calculating the profit in a manual way. If there is a way to export different reports in excel and merge them to do that in a faster way I would appreciate that insight. Anything that help us save time doing that tedious work. Currently taking a lot of time and time is money. This is a job that currently must be done by management and needs to be perfect in order for our sales reps to get the exact amount of commission earned.

Once again thank you for your input and I encourage anyone else that have the same issue to participate here and let us know how they are currently doing this to save time and money calculating commissions based on profit per invoice/per sales rep.

Andres.

Highlighted
Level 2

How can I calculate the profit per invoice in order to pay commissions on profit?

Hello,

thank you for your prompt response. That is a feature that we have been requesting for years and still QB won't come out with it, please submit it and try to prioritize it. I am sure there is a lot of companies with the same issue.

On the other hand, We are currently checking item by item of every invoice in order to identify the purchase cost and the sales price and calculating the profit in a manual way. If there is a way to export different reports in excel and merge them to do that in a faster way I would appreciate that insight. Anything that help us save time doing that tedious work. Currently taking a lot of time and time is money. This is a job that currently must be done by management and needs to be perfect in order for our sales reps to get the exact amount of commission earned.

Once again thank you for your input and I encourage anyone else that have the same issue to participate here and let us know how they are currently doing this to save time and money calculating commissions based on profit per invoice/per sales rep.

Btw, the Profit & Loss Report by Class DOES NOT include cost of good sold so everything shows as profit.

Andres.

Highlighted
QuickBooks Team

How can I calculate the profit per invoice in order to pay commissions on profit?

Thanks for the great suggestions, @Pipe3001.

 

 Our goal is to make QuickBooks as user friendly as possible and a one-stop shop for all small business owners like you.

 

With QuickBooks Online, you have the ability to customize your invoice form which include adding the names of your Sales Representative. 

 

Here's how:

  1. Go to the Gear icon.
  2. Choose Accounts and Settings.
  3. Select Sales.
  4. Under Sales from content tab, click Custom Fields.
  5. Type in the name Sales Rep on the first box..
  6. Put a check mark on Internal and Public.
  7. Click Save.
  8. Hit Done.

Slide1.GIF

 

Once completed, you can now add the name of the sales rep everytime you create an invoice, sales receipt, estimate and credit memo.

 

Slide2.GIF

 

To run a report show sales per representative, here's how:

  1. Go to Reports.
  2. Choose Sales by Class Detail.
  3. Under group by, choose Sales Rep.
  4. Click Run Report.

 

 

Slide3.GIF

 

 

You also have the ability to change the name of the report from Sales by class detail to Sales by Sales Representative.

 

On the other hand, Profit and Loss is a type of report that shows a detailed view of your income, expenses, and net income (profit or loss). Shows individual transactions. On the P&L the number in COGS is displayed as positive ( debit) the P&L does not show debits and credits unless you drill down. In cash basis reporting for sales, COGS is only posted when the sale is paid.

 

Lastly, feel free to send your suggestions for improvement  and I'll do the same thing from my end.

 

Here's how:

  1. Go to the Gear icon.
  2. Select Feedback.
  3. Enter your request/product suggestion, then click Next.
  4. Click Skip and send message.
  5. Select Feedback as the Category.

New features are often added to this app, so be sure to keep an eye on our blog for announcements: https://intuit.me/2L2zqTv.

 

That should do it! Let me know if you have any other questions about running and customizing reports in QuickBooks Online. I'd be glad to help.

View solution in original post

Highlighted
Level 10

How can I calculate the profit per invoice in order to pay commissions on profit?


@Pipe3001 wrote:


btw, I have tried:
*Sales by Class Summary (Each sales rep is in Class)
*Profit and loss by Class (But this one doesn't show the cost of good sold of the product the sales rep sold.


The Profit and loss by Class WILL show the profit by sales rep, if each sales rep is a Class (not "in" a Class), and if you use inventory items. Do you use inventory items?

Highlighted
Level 2

How can I calculate the profit per invoice in order to pay commissions on profit?

Thank you very much for all your support!

This is a very easy way to explain how to get the actual reports for the sales rep. I realized that in order for me to get the COGS in the P&L report I had to check the report in ACCRUED basis. Now I am checking the P&L report in Accrued basis and I am being able to see the total income the sales rep brings to the company, the total cost of good sold by the rep and finally the profit so I can calculate their commissions.

Thanks for the help!

Highlighted
Level 10

How can I calculate the profit per invoice in order to pay commissions on profit?


@IamjuViel wrote:

  

Under Sales from content tab, click Custom Fields.

  

Once completed, you can now add the name of the sales rep everytime you create an invoice, sales receipt, estimate and credit memo.

 


It's a bad idea to use the custom field for sales rep because there is no drop-down list, so you have to type it in every time, and there is no validation of what you type, so errors of course will happen.   Better to use Class, Customer Type or Sub-Customers, where you won't have to type in the sales rep every time

 

Highlighted
Level 2

How can I calculate the profit per invoice in order to pay commissions on profit?

Yes, we actually use CLASS for Sales Rep and TERRITORY to identify the different markets we sell to in order to track to which territories we are selling the most.

Highlighted
Level 1

How can I calculate the profit per invoice in order to pay commissions on profit?

Forget about in order to pay commissions.

I need to be able to show the gross profit per invoice.

How can I do this in a report for all my invoices individually

Highlighted
QuickBooks Team

How can I calculate the profit per invoice in order to pay commissions on profit?

Hi there, @NeedToKnow.

 

It's nice to have you in the Community today. I'm here to help share some information regarding having the gross profit to show per invoice when running a report in QuickBooks Online.

 

Being able to pull up a report which consists of the gross profit per invoice is currently not available in QuickBooks Online. However, you can pull up a transaction list by customer report and customize by invoices this will show the total amount of the invoices per customer. To see the invoice amount you can simply open the transactions individually.

 

To pull up the report:

  1. Click on Reports at the left pane.
  2. On the search box, type in Transaction List by Customer.
  3. Enter your desired date.
  4. Click on Customize.
  5. Select on Filters.
  6. Put a check-mark on the Transaction Type box.
  7. Select in Invoice.
  8. Then run the report.

From there you'll be able to see the gross profit of the customer's invoices and just open the transaction manually to see the profit per invoice.

 

To guide you with customizing reports in QuickBooks Online, feel free to check out this article: How to customize reports.

 

Also, I'd encourage you to visit our QuickBooks Online blog regularly, to know about the latest news and updates from QuickBooks including product improvements, company news, and leadership spotlights. We'll be posting here some features that would be beneficial for you and your business.

 

That should do it!

 

Please don't hesitate to reach out to me here should you have any further questions concerning QuickBooks, I want to make sure you're taken care of. Thanks for coming to the Community and take care.

Highlighted
Level 1

How can I calculate the profit per invoice in order to pay commissions on profit?

It only gets me part of the way there.   It doesn't allow me to post the actual commission due the sales person or in somecases multiple sales people.     Still have to manually calculate the amount of commission due.    Also how does that info get to the payroll system as commission

Highlighted
QuickBooks Team

How can I calculate the profit per invoice in order to pay commissions on profit?

Good to see you in the Community, @DianeCPA55.
 

Currently, it's unavailable to post the actual commission due to the salesperson or in salespersons.

In this case, I'll take this one as feedback and submit it to our product engineers. There they can manage and test the enhancements needed to sales, especially in posting the actual due to the salesperson's commission. It may take some time to work for a feature that follows due process.
 

We're unable to put the commission due to the salesperson or salespersons. You can manually enter the commission by going to the Workers menu. There you can either set an employee's pay to commission only or add commission as an additional pay type. Please use this article as your basis in performing the steps: Pay employees a commission.

In the future, you can also use the article to pay employees commission along with regular pay.

Please feel free to leave a message if there's anything else. I'm always here to help you. Take care!
 

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