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F
fwiginton
August 23, 2021
Question

Allocating Invoice overpayment to invoice and commission income

  • August 23, 2021
  • 1 reply
  • 0 views

I am trying to record an over payment of an invoice by a customer by
splitting the payment into the amount of the invoice and the balance to
commission income account.
Example: my client Zapa. I provide business consulting services to them. I also
refer clients to them. Each month I invoice them $5,000 for consulting services.
They pay me $8,000 ($5,000 for the invoice and $3000 for commissions). I need to
know how I divide the $8000 payment into $5000 for invoice paid and $3000 to
commission income.

1 reply

J
JamesM4
August 24, 2021

Hello fwiginton, 

 

QuickBooks Online is a dynamic program that simplifies the way you manage your transactions. I'll be glad to point you in the right direction so you can get the resolution you need in a timely manner. 

 

Making sure you're recording your transactions properly is an essential step for maintaining clean books. Based on what you've described, I'd recommend reaching out to an accounting professional for expert advice on how to record the transactions. If you're not in contact with a professional, don't worry, you can search for one using this link here.

 

I'll also leave this question open in the Community so other accountant users can share their advice. Otherwise, feel free to ask other questions, I've got your back. 

 

F
fwigintonAuthor
August 25, 2021

Thanks for the response. This isn't an accounting question. It is a software question. How do I make the software divide the payment into two transaction to allocate one part of the payment to the invoice and the other part to another income account (commission income)?

J
JamesM4
August 25, 2021

Hello fwiginton. Glad to hear back from you again. A workaround I suggest is creating a service item for the commission and selecting an income account for it. Thi article here shows you how to create a service item in QuickBooks. I recommend contacting an accounting professional to learn more about the right income account to use. Otherwise, here are the steps that show you how to add the service item:

  1. Navigate to Sales.
  2. Click on Products and Services.
  3. Select New.
  4. Click Service.
  5. Enter the name (Commission) and other required info.
  6. Click on Save and close.

Going forward, you can add this service item as a line item to your sales forms. This means you can include the $5000 plus the $3000 as line items on your sales forms. Let me know if these steps help you divide your income from your client. Otherwise, I encourage you to consult an accounting professional for additional advice on this. 

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