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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!

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Best answer 10-15-2018

Accepted Solutions
Level 15

I would create a service item called commission earned, s...

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

10 Comments
Level 15

I would create a service item called commission earned, s...

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

Level 1

Thank you.

Thank you.
Level 15

You're Welcome

You're Welcome
Level 12

DO NOT make entries to Undeposited Funds. Those entries a...

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

Thank you.

Thank you.
ProAdvisor

You can use the make a deposit screen. You will be able t...

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

Thank you.

Thank you.
ProAdvisor

You're welcome

You're welcome
Level 1

RECORDING COMMISSION CHECKS BY INVOICES

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

Level 1

Re: I would create a service item called commission earned, s...

Would the created Service Item be a Non Tax item?

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