Recording Sales Commission Received

10 replies
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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.

QuickBooks Accountant Desktop

qbteachmtAnswer

Level 11

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

Level 8

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.

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.
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.
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.

qbteachmtAnswer

Level 11

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

JessT

Moderator

Hi,

Currently I am using cash basis system to pay comm on sales. When I receive payment from customer I write ff Invoice at same time but problem is that chq received are post dated chq depends upon credit period.

So under cash basis system I am paying comm when chq is received. But now my management thinking to pay comm when chq goes to bank account I mean when actual fund is received.

Can u pls guide me, How it can be possible in Quick books??

bcs when I enter receipt voucher in system Invoice got paid, I can't hold payment voucher till chq date also bcs customer wants SOA every month , If that Invoice wl be showing there it wl create confusion.

Pls suggest

Hello Bhags!

It seems like this is more of an accounting question than a How-do-I question for QuickBooks. I imagine myself as your customer. Then, when I receive my SOA, I would probably ask why the invoice I paid is still showing as unpaid.

I don't mean to disrespect your management's decision. However, I would suggest consulting an accountant to know what date to use on your invoice payments (via postdated checks) or what's the proper way to record it. That way, we can be sure that your books are correct. At the same time, we can avoid confusions on your client's side.

If your accountant gives you an instruction that you find it challenging to enter in QuickBooks, feel free to visit us back here. We will help you with it.

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