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BenPage96
November 17, 2020
Solved

Comission taken off invoice,

  • November 17, 2020
  • 1 reply
  • 0 views

Hello, I'm a contractor and do work for various estate agents. The agents charge a 20 percent fee, so for example I just invoiced for £100 but get paid £80, how do I show this on my QuickBooks? its basically their commission for giving me work. 

Cheers
Ben 

Best answer by BettyJaneB

It's nice to have you back here in the Community, @BenPage96.

 

I've got the steps that you need in recording the 20% agent fee on your sales transaction.

 

You can create a service item for the agent fee and enter it as a negative amount upon creating the invoice. In doing this, make sure that the income account of the item is an expense account since it has been taken out before you receive the income.

 

Here's how to set this up:

  1. Click on the Gear icon at the top.
  2. Select on Products and Services. 
  3. Hit on New.
  4. Choose on Service.
  5. Enter the item name. 
  6. From the Income account section make sure to select an expense account to track your transactions correctly.
  7. Tick on Save and close. 

Once done, you can now proceed with creating the invoice and applying the charge.

 

Here's how to create your invoice:

  1. Click on the + New button.
  2. Choose Invoice.
  3. Select your customer name and other information needed on the invoice.
  4. From the Product/Service box select the item to be used with its amount.
  5. Add a second line for the service item (agent charge) that you've created and enter the 20% amount of the fee as a negative figure. 
  6. Hit on Save and close.

You may also visit this link attached to guide you in adding items in QuickBooks Online: How to set up products and services.

 

Know that I'm just a few clicks away if you need more help. Have lovely day!

1 reply

BettyJaneB
BettyJaneBAnswer
November 17, 2020

It's nice to have you back here in the Community, @BenPage96.

 

I've got the steps that you need in recording the 20% agent fee on your sales transaction.

 

You can create a service item for the agent fee and enter it as a negative amount upon creating the invoice. In doing this, make sure that the income account of the item is an expense account since it has been taken out before you receive the income.

 

Here's how to set this up:

  1. Click on the Gear icon at the top.
  2. Select on Products and Services. 
  3. Hit on New.
  4. Choose on Service.
  5. Enter the item name. 
  6. From the Income account section make sure to select an expense account to track your transactions correctly.
  7. Tick on Save and close. 

Once done, you can now proceed with creating the invoice and applying the charge.

 

Here's how to create your invoice:

  1. Click on the + New button.
  2. Choose Invoice.
  3. Select your customer name and other information needed on the invoice.
  4. From the Product/Service box select the item to be used with its amount.
  5. Add a second line for the service item (agent charge) that you've created and enter the 20% amount of the fee as a negative figure. 
  6. Hit on Save and close.

You may also visit this link attached to guide you in adding items in QuickBooks Online: How to set up products and services.

 

Know that I'm just a few clicks away if you need more help. Have lovely day!

B
BPS
June 15, 2023

How do you do this using quick books self-employed? I can't see any options for products and services.

A
AileneA
June 15, 2023

Hello, BPS. 

 

The processes outlined by my colleague above are for QuickBooks Online, which is why you are unable to see the Products and Services option. As a workaround, recording the agent fee on the sales transaction is done by manually adding a transaction and selecting the correct category and the type. Just a heads-up, QBSE-added transactions are automatically tagged as Business; you may modify this if necessary.

 

 

I'll show you how to do it: 

 

  1. Let's create first, create a manual transaction by selecting the Transactions menu in your QBSE account.
  2. Next, click the Add Transaction button.
  3. From there, enter the needed details and choose the correct category.
  4. You'll notice that this is already tagged as Business under the Type column. 

 

 

 

 

For more information about the process, please check this article: Manually add transactions in QuickBooks Self-Employed. 


You'll want to check Schedule C and expense categories in QBSE. This article provides which category to use for a specific transaction. 

 

I'm always here ready to lend a hand if you have any other concerns about adding transactions in QBSE. Have a nice day, and stay safe. 

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