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wp318
January 8, 2019
Solved

Recording Sales Commission Received

  • January 8, 2019
  • 1 reply
  • 25 views
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.
Best answer by qbteachmt

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

1 reply

IamjuViel
IamjuViel
Level 8
January 8, 2019

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
January 8, 2019

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

A
Agnes_l
April 8, 2019

Hi,

 

I am recording the commission income via Sales Receipts and they pay the commission to brokers via checks. Now, it happened that one broker was overpaid and needs to return the commission he was paid. I know that when the refund of the commission was already received I would just make a deposit to the appropriate COGS account, but how to record a commission that is due to be received but has not yet been received. How to account for this commission in QuickBooks?

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