Real Estate agents fee deductions from commission checks in QB online?

Thanks for the information. Failed to expound on my problem, but in addition to the deduction for the fees, the agent was invoiced. Therefore there is the problem of credit and associated entries into A?R for the payment.

Hello,

Can you please explain how to do this for QB desktop Mac??? PLEASE!!!??????

Hello @FRG2020,

I'll be happy to show you the steps that'll let you record the commission checks of your real estate agents fee deductions.

To start with, are your real estate agents recorded as your vendors or employees? Depending on how you record them, you can follow the steps outlined below so you can successfully create your commission checks.

First, if you record them as your vendors, you'll have to create a new expense account for your commission checks. To do so:

1. Go to Lists.
2. Select Chart of Accounts.
3. Click the Plus icon at the bottom of the page.
4. Under Type, select Expense.
5. Enter Commission as the name of your new expense account.
6. Click OK.

Once completed, here's how you can enter and create your commission checks:

1. Go to Banking.
2. Select Write Checks.
3. Choose your bank account.
4. Under Pay to the Order of, select your vendor (Real State Agents).
5. On the Account column, select your recently created expense account.
6. Enter the amount of your commission checks.
7. Click Save.

Meanwhile, if your real state agents are recorded as your employee, you can select the Commission as their pay type an create a check. Here's how:

1. Go to Employees.
2. Find and open your employee's profile (Real State Agent).
3. On the Pay section, select Edit.
4. Under What additional ways do you pay your employee, select Commission.
5. Click OK.

From there, let me show you how you can create your commission check:

1. Go to Payday.
2. Select your employee (Real State Agent).
3. Under Commission, enter the amount of your commission check.
4. Click Approve Paychecks.

Know that you can always visit our Help Articles for QuickBoks Desktop Mac in case you need some reference for your future tasks.

If there's anything else that I can help you with, please let me know in the comment section down below. I'll be always around ready to help.

Our situation is a bit different, we use a Commission Disbursement Authorization form. The Agent leave the Title Company with their commission check and the Brokerage check is separate. I need to account for all of the commission coming in and the agent commission going out, but there is no matching deposit or outgoing check.

Hello there, @gigemaggs83.

I'm here to ensure you're able to record your agent's transactions in QuickBooks Online (QBO). This way, you can keep your financial data accurately recorded.

It's best to record transactions based on your real-life activities in QuickBooks. Based on your scenario above, you'll have to manually record the commission coming in and out of your company. For example, once you receive a payment, you can create a sales receipt and deposit it to the appropriate income account. Then, create a check to record the agent commission and associate it to your expense account.

You can refer to the steps provided above on how to add a commission expense account (if you don't have one yet) and create a check depending on how you've set up your agents in QBO.

When your account is connected to online banking, your transactions will automatically download. All you have to do is review and/match them to the existing entries in QuickBooks. For the detailed steps, you can refer to this article: Categorize and match online bank transactions in QuickBooks Online.

Additionally, I'd recommend reconciling your accounts every month. This is to effectively monitor your income, expenses, and the growth of your business. For the step-by-step guide, you can check out this article: Reconcile an account in QuickBooks Online. It also includes instructions about editing past reconciliations.

Let me know if you have other concerns or follow-up inquiries about managing agent's commission and transactions in QBO. I'm just around to help. Take care always.

We also have this problem. Example: 

The Title company collects the whole amount                  $3000.00

paid to Agent commission check                                        1000.00

Total to check to real  estate company   (Amt deposited)   2000.00 

How do we show the whole income  amount of $3000.00 when we only deposited 2000.00?  If we could post the whole deposit of $3000.00  and in the deposit detail subtract 1000.00 agent commission I think that would work, but you cannot enter a negative amount on a deposit.       

You can enter a negative amount on a deposit, wendy112.

I'll show you  how:

1. Go to + New and select Bank deposit.
2. In the Add funds to this deposit, enter a negative amount of 1000.
3. Click Save and close.

Please see attached screenshot:

Use this Record and make bank deposits in QuickBooks Online to learn more information on how to combine multiple transactions into a single record in QuickBooks.

Please let me know if you need anything else. I've got your back.

Hello, I have a question on how to record the commission paid to agent but the agent is not a 1099. I have XYZ Realty as the parent company and under that umbrella I have ABC Realty company. XYZ Realty pays the agent directly under 1099 but ABC Realty needs to record commission without hitting income because ABC pays for the marketing and other expenses for buyer and seller. For example: the commission is $5,000.00. That is split between the agent and ABC realty 50/50. XYZ Realty takes out their royalty portion out of the agents commission and the same to ABC Realty. How can I book the agent commission in quickbooks? I still would like to see how much each agent is making even though I don't have to 1099 them directly. For reporting purpose only.

Thanks for sharing the details of your concern with us, @abtevent.

You can record a commission of your agent that isn't included in your 1099 by issuing a check. I can guide you how.

To begin with, you'll want to ensure you set up a commission expense account in your QuickBooks Online (QBO). Here's how.

1. Go to the Gear icon.
2. Select Chart of Accounts.
3. Click New. 
4. From the Account Type field select Expenses. 
5. Pick the appropriate Detail Type.
6. Enter a relevant name, such as Commission.
7. Then click Save and Close.

Once done, you can now proceed in creating a check:

1. Go to the + New menu.
2. Click Check.
3. Choose the Payee from the drop-down menu.
4. From the Bank account drop-down menu, select the account the check withdraws the money from.
5. Select your expense account from the Category column.
6. Enter the needed details, then click Save and close.

I'd also encourage you to work with your accountant for additional guidance. They'll be able to share with you the best way to handle this and ensure your book is well accounted for. If you're not affiliated with one, you can visit our ProAdvisor page and look for one from there.

If you're using QuickBooks Desktop (QBDT), you can refer to the steps outlined in these articles. The steps may be different, but the workflow is very much the same.
 

• Add, edit, or delete accounts in QuickBooks Desktop
• Create, modify, and print checks

I'm also attaching these links for additional reference:

• Pay employees a commission
• Set up commission payroll item and reports

Once done, you'll want to run your payroll reports to see and check how much your agents are making.

If you have other follow-up questions about recording commissions in QuickBooks, you can always get back to me in this thread. I'll be around to assist you. Keep safe and more power to your business!

I am having a real problem with this in QuickBooks so I need some help on what I am doing.

As a broker, I receive escrow checks from buyers. I have one escrow account that I deposit into and I have two categories: Escrow Fund Liabilities: Offer To Purchase and Escrow Fund Liabilities: Purchase and Sale as Massachusetts is a 2 strep escrow state.

When the job closes, I transfer the funds from the escrow account to the General Account: I then pay my 1099 Contractors (Vendors) from this account with the category: Escrow Funds Liabilities: Escrow Liability-C21 Salesperson and the Co-Brokers with: Escrow Funds Liabilities: Escrow Liability-CoBroker Salesperson. On each transfer, there is a remaining amount which is now income to the company to pay royalty fees, expenses, etc. 

On closings where I am not holding escrow, I receive a closing check from the Co-Broker (Listing Office) I record that as Commission Received. then from there, I pay my 1099 Contractors (Vendors) Commission Paid: Commissions Paid: Commission Paid-C21 Salesperson. The rest of the money is now income as above. 

My question is am I accounting for the Escrow Money Properly or is there another way to show the remaining money as Income Received?

I am a real estate agent. How do I account for the fees taken out by the broker on my commission checks? 

Say the total commission on a sale is $2000.00 but the broker takes out advertising $250.00 and painting of property $300.00. So my true check is only $1450.00. 

How is Agent Equity that is deducted of commission cheque entered in quickbooks desk top.?