cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 2

Recording Sales Commission Received

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.
Solved
Best answer 01-08-2019

Accepted Solutions
QuickBooks Team

Re: Recording Sales Commission Received

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.  

View solution in original post

9 Comments
QuickBooks Team

Re: Recording Sales Commission Received

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.  

View solution in original post

Level 15

Re: Recording Sales Commission Received

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-insuranc...

Level 2

Re: Recording Sales Commission Received

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?

Level 2

Re: Recording Sales Commission Received

 
QuickBooks Team

Re: Recording Sales Commission Received

Thank you for joining this thread, @Agnes_l.

 

Let me share some steps on how you can record your incoming commission or receivables in QuickBooks Desktop.

 

Since you're still about to receive the commission, you can create an invoice for it. Once you received the commission, you can mark the invoice as paid.

  1. Click the Customers menu.
  2. Go to Create Invoice.
  3. Enter the complete invoice detail.
  4. Click Save and Close.

For a complete workflow in tracking Account Receivables, you may check out this article: Accounts Receivable workflows in QuickBooks Desktop.

 

Stay in touch with us here in the Community if you have other question about tracking your commission in QuickBooks Desktop. I'm always here to help.

Level 2

Re: Recording Sales Commission Received

Hi, thank you for your reply but my understanding is that if I create the invoice it will create an extra sales which is not true. I know that if the refund is already in the bank account I just deposit it to the COGS account to reduce the commission paid out but I just have no idea how to handle it when this money is still due to be received. 

Anonymous
Not applicable

Re: Recording Sales Commission Received

Hi there, Agnes_l.


Whether you’ve already received the refund or not, recording it in COGS would still be the same (make deposit to the COGS account). Most of the users only track transactions in QuickBooks when they've already posted to the actual bank. Though, it’d still be your discretion when to record the refund in your books.


Don’t hesitate to reach us anytime you have questions. 
 

Level 1

Re: Recording Sales Commission Received

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 

QuickBooks Team

Re: Recording Sales Commission Received

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.

Need to get in touch?

Contact us