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Recording Sales Commission Received

Forum|Forum|7 years ago
October 16, 2018
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Hi. Is it possible to record sales commissions received without using an invoice or sales receipt? Would it be correct to debit Undeposited Funds and credit Sales Commission Income, then make the deposit into checking? Would it be helpful to create a receivable account for sales commissions? I am the bookkeeper for a small sole proprietorship that receives commissions from selling products and signing up customers. I do not need to track the customers signed up or even the specific products that earned the commission, just the revenue itself. The commission is recorded online in detail through the company that I purchase inventory from. It builds up and I make a transfer to my business checking account. Thanks in advance!

QuickBooks Online

Best answer by Rustler

I would create a service item called commission earned, select your commission income account on the item screen

use that item on a sales receipt when you get the commission and then deposit the funds (you can use a generic customer, or create that company as a customer <- if there is any chance other companies will be paying you in the future this is the better option.

that will give you better income reporting.

RustlerAnswer

I would create a service item called commission earned, select your commission income account on the item screen

use that item on a sales receipt when you get the commission and then deposit the funds (you can use a generic customer, or create that company as a customer <- if there is any chance other companies will be paying you in the future this is the better option.

that will give you better income reporting.