Skip to main content
M
Mazevz
October 26, 2021
Question

Reports

  • October 26, 2021
  • 1 reply
  • 0 views

We have a sub contractor who does work for us and earns us commission. I have set up his account as an income account and set up a separate account for the commission. When we get paid by the client for the contractor's work, I match the payment to our invoice and then pay the contractor's invoice. I then make a journal entry and pay the remaining amount, which is our commission, into the commission account. The contractor's account should then be zero. I need to find a way of the sub contractor's income account not showing in Profit and Loss reports, OR, changing the sub contractor's account to a different type of account so it is not pulled through to a Profit and Loss report. I don't want to see the contractor's income account in the report because if I have not yet received the contractor's invoice then that amount will be showing in his account as income, which it isn't. Can anyone help please?

1 reply

paul72
paul72
October 27, 2021

Hi @Mazevz 

 

I may be misreading your post, but I think you're overcomplicating things.

What you're calling commission sounds like profit (& can be treated as Service In / Service Out in QB).

 

You receive an invoice from the contractor for work done?

   enter as a bill in QB

You invoice the client for the work done by the contractor (at, say, plus 10%)?

   enter as an invoice in QB

You receive payment from the client?

   enter as Receive Payment

You pay the contractor?

   enter in Pay Bills

 

In terms of accounts to post to - the contractor's bills should go to an Expense account (say, cost of Labour) & the invoices to the client should post to a Sales/Income account.


Hope this helps.

 

 

Terms & ConditionsAccessibility statement