Allowance Check

Glad to see you in the Community, @a_bears.

I appreciate you sharing the details regarding the allowance checks.

In this scenario, you can set up the company as a vendor. However, you may need to refer to your accountant to ensure you're posting it to the correct categories. You'll also need to create a journal entry to transfer the payment made by the third party to the major companies to show this as paid on your bills. 

Please know you can reach me here anytime you need a hand with QuickBooks. Take care and have a good one.

Thank You @IntuitLilyfor helping me with this question! I will try to explain the check in a simple way.  It is a complicated sanerrio if your not familiar with the way tobacco retail works. 

In order to increase sells on an expensive item.  I sell a product for less then the purchase price.  Therefore losing money on the sale.  The manufacturer of said product then turns around and gives me a monthly payment based on margins agreed upon between us.  Making up the difference in lost money from purchased priced allowing me to make a profit. 

How do i handle the monthly check?  What is this type of check considered?? My accountant calls it a commissions/allowance check.  How do i record that in quick books when it appears on my bank feed?  I do not have the manufacturer set up in quick books where should i put them in order to keep track of the payments sent to me?

Thanks for getting back to us, a_bears.

Now that the check is in your banking page, you'll want to add the manufacturer as a vendor. This is to track the company where you buy or sell a product.

To add a vendor, simply click the Vendor/Customer ▼ drop-down on the For Review tab. Then, click + Add new.

After that, you'll want to create an account to track the payment received from the manufacturer. Let me show you how:

1. On the For Review tab, click the Category ▼ drop-down, then select + Add new.
   
2. In the Account Type ▼ drop-down menu choose an account type.
3. In the Detail Type ▼ drop-down, select the detail type that best fits types of transactions you want to track. 
4. Give your new account a name (like Commission/ Allowance).
5. Add a description.
6. When you're done, click Save and Close.
7. Once done, click Add to post the payment to your register.

I've added the Add an account to your chart of accounts in QuickBooks Online page for additional information.

For the type of account, I'll suggest consulting with your account. He/She might have specific instructions on what account to use. This is to ensure you have accurate records of your income or expenses.

Stay in touch if there's anything else you need. I'm always available here in the Intuit Community forum.