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How to Record Percentage of Sales into invoice?

Hello,

 

For invoices, I charge based on a percentage of gross sales. For example, if I manage to help close a $10,000 project, I get 10% of the $10,000 in commissions/percentage alongside a retainer fee. How do I record commissions in Quickbooks? I know it's not a product or a bundle, it's commission-based. The only way I can see this is it going to be a "service."

 

Also, do I record this as a credit to "Commissions Revenue" or something along the lines and debit to cash?

 

Thank you for your help

Solved
Best answer March 17, 2020

Best Answers
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QuickBooks Team

How to Record Percentage of Sales into invoice?

Hey there, @Cdmidfielder

 

Thanks for reaching out. I hope your day is going great. 

 

To clarify, are you a third party contractor helping a primary business to close a project, and you're getting %10 commission from the $10,000?

 

If you're using an invoice to only record commission, then you're on the right track. The commission can be created as a Service item with a Commission Revenue Income account assigned. Below is how you can create a Product/Service to be used on an Invoice. 

 

1. Go to the Sales menu and click Product and services

 

2. Select New then, Non-inventory or Service

 

3. Add a name.

 

4. In the Category drop-down, click the category that best describes your product or service. 

5. Then choose your Commission Revenue Income account

6. Save and Close once you're finished. 

 

 

 

Check out these helpful articles for more details:

 

I'll keep a lookout for your response. Please let me know if you have further questions or concerns. I'll be here to help you every step of the way. You can always reach out to the Community or me anytime you need assistance. Take care and have a great rest of your week!

 

View solution in original post

1 Comment
Highlighted
QuickBooks Team

How to Record Percentage of Sales into invoice?

Hey there, @Cdmidfielder

 

Thanks for reaching out. I hope your day is going great. 

 

To clarify, are you a third party contractor helping a primary business to close a project, and you're getting %10 commission from the $10,000?

 

If you're using an invoice to only record commission, then you're on the right track. The commission can be created as a Service item with a Commission Revenue Income account assigned. Below is how you can create a Product/Service to be used on an Invoice. 

 

1. Go to the Sales menu and click Product and services

 

2. Select New then, Non-inventory or Service

 

3. Add a name.

 

4. In the Category drop-down, click the category that best describes your product or service. 

5. Then choose your Commission Revenue Income account

6. Save and Close once you're finished. 

 

 

 

Check out these helpful articles for more details:

 

I'll keep a lookout for your response. Please let me know if you have further questions or concerns. I'll be here to help you every step of the way. You can always reach out to the Community or me anytime you need assistance. Take care and have a great rest of your week!

 

View solution in original post

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