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Level 2

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

 
Solved
Best answer 11-21-2018

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QuickBooks Team

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

It's nice to have you in the Community, @Sonny G.  

 

That's a good question! I can absolutely help create a commission check with fees deducted on it.   

 

First, I would like to know how these Real Estate agents are entered in QuickBooks Online? If you recorded them as vendors, you can write a check for the commission amounts, then enter those fees in negative. Make sure to set up a commission expense account in QuickBooks Online prior to creating the checks. 

 

To create a Commission Expense account:

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

To create a check:

  1. Go to the Create button (Plus icon), then pick Checks.
  2. Enter the real estate agent's details.
  3. In the Account column, choose Commission and enter the appropriate amount. 
  4. From the second line item, select the fee you need to deduct, then enter the amount as a negative sign. 
  5. Click Save and Close (see screenshot 1).

However, if you've tracked them as an employee in QuickBooks Online, you can create a deduction item for the fees to deduct. Then, run a Commission Only paycheck.   

 

To create a deduction item:

  1. Go to Workers in the left panel, then choose Employees.
  2. Choose the Real Estate Agent you want to edit, then click the Pay pencil icon. 
  3. Scroll down to number 4, then click the Add a new deduction link.
  4. Choose New Deduction from the Deduction/contribution drop-down. 
  5. Select Other deductions in the Deduction/contribution type.
  6. Choose an appropriate type.
  7. Enter an amount or percentage per pay period. 
  8. Click Ok

To create a Commission Only paycheck:

  1. Go to Workers in the left panel, then choose Employees.
  2. Click the Run payroll drop-down arrow, and select Commission only.
  3. Select the checkbox next to the real estate agent to include in this payroll.
  4. Enter the commission amount for each.
  5. Write in the Pay date
  6. Choose the pencil icon next to Payroll options, select the one you want and click Apply.
  7. Pick Preview payroll, and then click Submit payroll

Here are articles to give you the detailed steps:

I'd also recommend consulting with your accountant before you do the process.

 

You should now be able to give those commission checks to your real estate agents with the appropriate amount.   

 

If you need more help with this or if you're referring to something different, please let me know by leaving a reply below.  

 

Write a check.PNG

View solution in original post

Highlighted
QuickBooks Team

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

Thanks for looping back, @Sonny G.

 

I appreciate you clearing things out. I'd like to recommend the initial steps given by my peer @VivienJ

 

Since the agent is given an invoice,  you can set up a commission expense account and create a check. You can follow the same steps given.

 

Here are also some articles you can use as a reference:

That should help you choose the associated account for the payment. Just don't hesitate to add a comment if you have additional questions. We'll keep an eye on your reply. Wishing you and your business continued success!

View solution in original post

5 Comments
Highlighted
QuickBooks Team

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

It's nice to have you in the Community, @Sonny G.  

 

That's a good question! I can absolutely help create a commission check with fees deducted on it.   

 

First, I would like to know how these Real Estate agents are entered in QuickBooks Online? If you recorded them as vendors, you can write a check for the commission amounts, then enter those fees in negative. Make sure to set up a commission expense account in QuickBooks Online prior to creating the checks. 

 

To create a Commission Expense account:

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

To create a check:

  1. Go to the Create button (Plus icon), then pick Checks.
  2. Enter the real estate agent's details.
  3. In the Account column, choose Commission and enter the appropriate amount. 
  4. From the second line item, select the fee you need to deduct, then enter the amount as a negative sign. 
  5. Click Save and Close (see screenshot 1).

However, if you've tracked them as an employee in QuickBooks Online, you can create a deduction item for the fees to deduct. Then, run a Commission Only paycheck.   

 

To create a deduction item:

  1. Go to Workers in the left panel, then choose Employees.
  2. Choose the Real Estate Agent you want to edit, then click the Pay pencil icon. 
  3. Scroll down to number 4, then click the Add a new deduction link.
  4. Choose New Deduction from the Deduction/contribution drop-down. 
  5. Select Other deductions in the Deduction/contribution type.
  6. Choose an appropriate type.
  7. Enter an amount or percentage per pay period. 
  8. Click Ok

To create a Commission Only paycheck:

  1. Go to Workers in the left panel, then choose Employees.
  2. Click the Run payroll drop-down arrow, and select Commission only.
  3. Select the checkbox next to the real estate agent to include in this payroll.
  4. Enter the commission amount for each.
  5. Write in the Pay date
  6. Choose the pencil icon next to Payroll options, select the one you want and click Apply.
  7. Pick Preview payroll, and then click Submit payroll

Here are articles to give you the detailed steps:

I'd also recommend consulting with your accountant before you do the process.

 

You should now be able to give those commission checks to your real estate agents with the appropriate amount.   

 

If you need more help with this or if you're referring to something different, please let me know by leaving a reply below.  

 

Write a check.PNG

View solution in original post

Highlighted
Level 2

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.

Highlighted
QuickBooks Team

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

Thanks for looping back, @Sonny G.

 

I appreciate you clearing things out. I'd like to recommend the initial steps given by my peer @VivienJ

 

Since the agent is given an invoice,  you can set up a commission expense account and create a check. You can follow the same steps given.

 

Here are also some articles you can use as a reference:

That should help you choose the associated account for the payment. Just don't hesitate to add a comment if you have additional questions. We'll keep an eye on your reply. Wishing you and your business continued success!

View solution in original post

Highlighted
Level 1

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

Hello,

 

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

Highlighted
Moderator

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

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.

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