cancel
Showing results for 
Search instead for 
Did you mean: 
hou_ka
Level 1

I am a realtor and need to account for a commission rebate given to a client

During a closing, I receive a check for the net amount of my commission and then deposit the check as Income in my account. I recently gave a client a commission rebate and this was taken from my gross commission. My broker said I still need to account for the commission rebate as it's part of the gross commission and will be reported on my 1099. How do I account for the rebate commission? If I create a JE with credit to Commission Rebate and debit to RE Commission, it decreases the amount I have netted. How do I account for the amount I did not receive via a check? Should I record the RE commission I receive in a different way as opposed to a direct deposit to my account? My statements still need to reconcile at the end of the month. Any help is appreciated. Thanks

4 Comments 4
Rustler
Level 15

I am a realtor and need to account for a commission rebate given to a client

One way is to create a service item for the rebate linked to a rebate expense account

 

then on the sales receipt where you record the receipt of the commission

line one: your commission item and the full amount

line two: the rebate item and the amount as a negative number

save and deposit the funds to the bank, then download banking and match

hou_ka
Level 1

I am a realtor and need to account for a commission rebate given to a client

Does this mean I set my broker up as a Customer to be able to create a sales receipt? 

Rustler
Level 15

I am a realtor and need to account for a commission rebate given to a client

Yes, customers pay you, you pay vendors

Rainflurry
Level 14

I am a realtor and need to account for a commission rebate given to a client

@hou_ka 

 

You can certainly create a sales receipt but, IMO, an easier option is to create a journal entry:

 

 DebitCredit
Cash (Deposit)XXX 
Rebate Expense (credit to client)XXX 
   Commission income XXX
Sign in for expert help
Ask questions, post replies & join our community of QuickBooks users.

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up