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EEB2
Level 1

My real estate broker deducts expenses from my gross commission check. How do I record the gross commisson less the expense when I deposit the check in QB?

Gross commission is $15,000 Transaction costs deducted from check = $3,000 Net deposit is $12,000. How do I record this in QB
2 Comments 2
MariaSoledadG
QuickBooks Team

My real estate broker deducts expenses from my gross commission check. How do I record the gross commisson less the expense when I deposit the check in QB?

Let me guide you on how you can record those transactions in QuickBooks Online, EEB2.

 

You can record a deposit and create an invoice and enter the Gross commission and Costs deduction. To do this, you can follow the steps below:

 

To record a bank deposit:

  1. Select + New.
  2. Select Bank Deposit.
  3. From the Account ▼ dropdown, choose the account you want to put the money into.
  4. Select the checkbox for each transaction if you want to combine them.
  5. Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
  6. Select Save and close or Save and new.

To create an invoice:

  1. Click + New and then Invoice.
  2. From the Customer ▼ dropdown, select a customer. Make sure all of their info is correct, especially their email address.
  3. Review the Invoice date. Then from the Terms ▼ dropdown, select the due date. Tip: Net refers to the number of days until the payment is due. The default is 30 days, but you can change the due date if needed.
  4. From the Product/Service column, add Gross Commission by selecting +Add new to create a new product or service right from the invoice. Then, add Cost Deduction on the second line with a negative amount.

      5. Click Save and close.
 

After that, you can link the deposit to the invoice. For your reference, if you have online banking you can find a match with your invoice by resolving the difference. Please check this article: Categorize and match online bank transactions in QuickBooks Online.

 

Feel free to let me know if you have additional questions on how to record commission. I'll be right here to assist you anytime.

IrSteve
Level 3

My real estate broker deducts expenses from my gross commission check. How do I record the gross commisson less the expense when I deposit the check in QB?

Is this what you are thinking? Put the gross income in on line 1 and then on the next line(s) put the expenses as a negative number to the expense account(s).

 

Deposit:

Line 1: $15,000 to income account

Line 2+: $-3,000 to expense account(s)

 

Edit: I see someone beat me to it. Oh well. :)

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