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Anonymous
October 16, 2018
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After I have recorded an invoice, how do I account for a referral fee that will be paid when the invoice is paid?

  • October 16, 2018
  • 1 reply
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I am Of Counsel to a law firm. For certain matters, we split the fee. When I book the invoice in QuickBooks, I want to also book the referral fee expense that will be paid when the invoice is paid.

Best answer by john-pero

Customer (Client) Credit memo posting to an expense account you call Referral Fee. When you receive the payment against the invoice you also apply the credit. If you choose, in preferences, to automatically apply credits this will be done for you. I advise to not auto-apply in case you want to direct it to something else.

1 reply

john-pero
john-peroAnswer
October 16, 2018

Customer (Client) Credit memo posting to an expense account you call Referral Fee. When you receive the payment against the invoice you also apply the credit. If you choose, in preferences, to automatically apply credits this will be done for you. I advise to not auto-apply in case you want to direct it to something else.

    A
    Andres11
    October 16, 2018
    Tried creating a credit memo but you cannot credit the memo using expense accounts. What I did was issue the invoice and create a line item below named Referral Fee (expense account) that shows the amount deducting from the initial invoice.
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