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wp318
New Member
Jan 8, 2019 2:38 PM UTC
Solved

Recording Sales Commission Received

As the Brooker, I receive and deposit the funds (Premiums) from a Group into a Trust Account. How do I transfer the money (premiums)over to the Insurance Company and receive my commission income, from the Insurance company? I want to take on this Brooker as a client. help, please.
qbteachmt
qbteachmtAnswer
Level 11
Jan 8, 2019 5:40 PM UTC

You should avoid Deposit; you need everything that happens in Trust Accounting to be on Customer Transactions so that Name are attached and so that Liability is affected. That is the only thing in and out of Trust Bank, so that it withstands audit.

 

This question has been asked three times by @wp318.

 

I gave a comprehensive answer here:

https://quickbooks.intuit.com/community/About-QB-Community/Setting-up-a-company-file-for-an-insurance-Agency-Brookage/m-p/217360#M3383

View in thread

10 replies

IamjuViel
IamjuViel
Level 8
Jan 8, 2019 4:36 PM UTC

Hello there, @wp318.

 

I’d be delighted to help ensure you’re able to properly record your Sales Commission in QuickBooks Desktop. Let’s get started!

 

To keep track of the money in in your account as well as for transparency purposes, here’s the work flow to record your Sales Commission.

  1. Make a deposit or create a Sales Receipt to record Sales Commission as Income 
    1. Go to Banking.
    2. Choose Make Deposits.
    3. Select Trust Account as the Deposit To bank account.
    4. Enter the details  of the deposit.
    5. Click Save.
  2. Write a check to record the transferred premium to the Insurance company.
    1. Click Banking.
    2. Select Write check.
    3. Under Bank Account, choose Trust Account.
    4. For the Pay to the Order of, select the name of the Insurance Company.
    5. Enter the rest of the check details.
  3. Make another deposit to show the Transfer of funds from the Insurance Company to your Personal bank account to show your Income.

 Just a heads-up,  ensure to set up a Commission Income account in your chart of accounts and use this account in all of the transactions above.  

 

That should do it! This should allow you to keep tracked of your Sales Commission as Income.  

qbteachmt
qbteachmtAnswer
Level 11
Jan 8, 2019 5:40 PM UTC

You should avoid Deposit; you need everything that happens in Trust Accounting to be on Customer Transactions so that Name are attached and so that Liability is affected. That is the only thing in and out of Trust Bank, so that it withstands audit.

 

This question has been asked three times by @wp318.

 

I gave a comprehensive answer here:

https://quickbooks.intuit.com/community/About-QB-Community/Setting-up-a-company-file-for-an-insurance-Agency-Brookage/m-p/217360#M3383

IamjuViel
IamjuViel
Level 8
Apr 8, 2019 11:14 PM UTC

Thank you for joining this thread, @Agnes_l.

 

Let me share some steps on how you can record your incoming commission or receivables in QuickBooks Desktop.

 

Since you're still about to receive the commission, you can create an invoice for it. Once you received the commission, you can mark the invoice as paid.

  1. Click the Customers menu.
  2. Go to Create Invoice.
  3. Enter the complete invoice detail.
  4. Click Save and Close.

For a complete workflow in tracking Account Receivables, you may check out this article: Accounts Receivable workflows in QuickBooks Desktop.

 

Stay in touch with us here in the Community if you have other question about tracking your commission in QuickBooks Desktop. I'm always here to help.

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