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charlotte-thepad
October 29, 2024
Question

Cash receipts for sales net of commission - how to post the cash to AP & AR?

  • October 29, 2024
  • 1 reply
  • 0 views
We receive our cash receipts for sales net of commission from a 3rd party and self invoices are raised each month.

We have set up a customer to raise the self invoices for the sales element. Traditionally we have raised a credit note for the commission.

Ideally I would like to start raising the commission against an Trade creditor account and reconcile the cash receipt between the two accounts because we have now started receiving invoices in Euros for the commission and so need to post an exchange rate difference to the cash received.

Does anyone have any recommendations of how to do this/if it is possible in QB?
Thanks in advance!

1 reply

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payment after leaving
October 29, 2024

Hi charlotte-thepad Thanks for reaching out to us here on the Community. To account for commission and receiving the amount from the sales receipt generated you would;

Allocate the sales receipt, the full amount before commission, to the undeposited funds account within the deposit to field, rather than the bank account. 

When you receive the net amount, create a bank deposit from the +New section and select the relevant sales receipt.

In the account column of the 'add funds to this deposit' section add the commission/expense account. 

Enter the amount of commission as a negative, save and you'll then be able to match the net amount to the amount received within the banking section.

We've included an article that references the above: https://quickbooks.intuit.com/learn-support/en-uk/help-article/bank-deposits/record-make-bank-deposits-quickbooks-online/L2BBZOPdr_GB_en_GB

If you have any further questions please reach out to us and we'll be happy top help you.

 

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