I need to charge a realtor their monthly fees. They want me to deduct the fees from their next commission check. What's the process to do so? Not sure if I should create an Invoice or Statement.
- They are set up as vendors in order to be paid commission
- Some pay their fees by check and others want the fee deducted from their commission check
* if deducted from commission check, I need to reflect the net pay (commissions paid - expense) and then the fees need to be applied to a receivable account.
What's the best process so they will be accurate when it comes to reporting their 1099s?
Hello there, @calicoellie.
I'm here to help ensure you're able to pay your vendor with the fee deducted from their commission.
You can write a check for the commission expense, then create another line for the fee with a negative amount. QuickBooks automatically provides you with the net amount in the transaction.
Let me guide you through on how to accomplish this:
- Click the Banking menu, then select Write checks.
- Select the vendor and complete other details.
- Click the Expenses tab.
- Select the expense account for the commission, then enter the gross amount.
- Select the receivable account for the fee, then enter the negative amount.
- Click Save & Close.
To be accurate with your 1099, you only need to map the commission expense.
You can also read through this article for additional information about writing a check: Create, modify, and print checks.
That will answer your concern for today about handling commissions and fees in QuickBooks Desktop.
Let me know if there's anything else I can help with your QuickBooks. Just drop me line and I'll get back to you.