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A
anubhuti-dubey-d
February 25, 2021
Question

Need help deciding the payment method for expenses that are deducted by the supplier for services provided before reimbursing the proceeds to us? E.g commission on sales

  • February 25, 2021
  • 1 reply
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Let's say someone sells on our behalf and collects money from customers. Deducts his/her commission and reimburses the remainder proceeds to us. The agent generates a monthly invoice for the commission charges. What should be the payment method for the same? Cash or Advance?

1 reply

A
AileneA
February 25, 2021

Hello, anubhuti-dubey-d. 

 

Thank you for reaching out to the Community. We can record it as advance payment since the supplier deducts his/her commission when collecting the money.  

 

However, if you if referring to the mode of payment like cash, check, or credit card, it will depend on your supplier on how he/she deduct the commission.    

 

You might find this helpful article that tackles How do I record an advance payment made to a supplier with TDS withheld. 

 

Please let me know if you need additional assistance by leaving a comment below. I'm only a post away if should you have any follow-up concerns. Take care and have a good one.

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