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cmammay
Level 1

Recording Sales Commission Received

Hi. Is it possible to record sales commissions received without using an invoice or sales receipt? Would it be correct to debit Undeposited Funds and credit Sales Commission Income, then make the deposit into checking? Would it be helpful to create a receivable account for sales commissions? I am the bookkeeper for a small sole proprietorship that receives commissions from selling products and signing up customers. I do not need to track the customers signed up or even the specific products that earned the commission, just the revenue itself. The commission is recorded online in detail through the company that I purchase inventory from. It builds up and I make a transfer to my business checking account. Thanks in advance!

Solved
Best answer October 15, 2018

Best Answers
Rustler
Level 15

Recording Sales Commission Received

I would create a service item called commission earned, select your commission income account on the item screen

use that item on a sales receipt when you get the commission and then deposit the funds (you can use a generic customer, or create that company as a customer <- if there is any chance other companies will be paying you in the future this is the better option.

that will give you better income reporting.

View solution in original post

12 Comments
Rustler
Level 15

Recording Sales Commission Received

I would create a service item called commission earned, select your commission income account on the item screen

use that item on a sales receipt when you get the commission and then deposit the funds (you can use a generic customer, or create that company as a customer <- if there is any chance other companies will be paying you in the future this is the better option.

that will give you better income reporting.

View solution in original post

ncwc_acct
Level 1

Recording Sales Commission Received

Thank you.
Rustler
Level 15

Recording Sales Commission Received

You're Welcome
john-pero
Community Champion

Recording Sales Commission Received

DO NOT make entries to Undeposited Funds. Those entries are made by QB as a result of you collecting money and depositing it later.
cmammay
Level 1

Recording Sales Commission Received

Thank you.
Raywhite28
Level 7

Recording Sales Commission Received

You can use the make a deposit screen. You will be able to enter the data there, no invoice etc.
cmammay
Level 1

Recording Sales Commission Received

Thank you.
Raywhite28
Level 7

Recording Sales Commission Received

You're welcome
KFRYHOFF1231
Level 1

Recording Sales Commission Received

I record commission checks received by doing the invoice/receive deposit.  This is okay as well?  TIA

jakeforce
Level 1

Recording Sales Commission Received

Would the created Service Item be a Non Tax item?

FlexMgt
Level 1

Recording Sales Commission Received

Do you have a video, or know of a video, that walks me through this process?

Rose-A
Moderator

Recording Sales Commission Received

Good day, FlexMgt.

 

While we can't provide you a video that will walk you through the process, I can provide you the steps on how to create the service item commission and record this sale in QuickBooks Online.

 

Here's how to create a service item:
 

  1. Click the Gear icon at the upper-right corner and choose Products and Services.
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  2. Select Service.
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  3. Enter the necessary information.
  4. Hit Save and close.

 

Once done, as referenced by our Community backer Rustler, you can set up your customers so that you can keep track of those commissions, use the item on your sales receipt and deposit the funds.

 

 

In case you need more help with tracking and recording your sales commission, the following pointers are good references:

 

Track sales commissions in QuickBooks Online.

Turn on class tracking in QuickBooks Online.

 

If you have any questions or need anything clarified, don't hesitate to reply to this post! All of us are eager to help set you up for success!

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