HI - follow up question on your statement below regarding anyone who pays you is a Customer. In my case, we have an agent that pays us commission on sales they made on certain customers. The previous bookkeeper records it as a deposit and I understand from above replies that this is the 'banking' side of it, and not the transactional. I want to record this properly going forward. To clarify, I should create a new Customer name under our Agent name, is that correct? Then the process would be as I receive a notification of commission income, I will accrue in QB (either with a journal entry: Debit Commission Receivable, Credit Comm. Income) and then when payment comes in, I receive it against Commission Receivable. Thanks for all your help. @qbteachmt wrote: "I can't enter an invoice or a sales receipt for an entity on my vendor list. Invoices and Sales receipts only apply to Customers, correct?" Anyone who pays you is your Customer. A Vendor can be both a vendor name and a customer name for the financial activities between the two of you, and you must Honor and use the right name for each function, as if that is two different entities. You pay and report vendors for goods and services, for 1099-Misc. Not the Customer Name. Customers pay you for sales of goods and services, and the commission income is paid to you by a customer name. Not the Vendor Name. Yes, you would use invoice or sales receipts.
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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.
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