Monday, March 29, 2010

QuickBooks: Computing Commisions by Invoice

A client asked: I pay an 8% commission on a specific service I offer. The commission is paid semi-annually so I want to accumulate a payable automatically. They can also be several vendors that are paid a commission. How do I do this?

The process is as follows:

* Setup a service item called XYZ at your price
* Point this at the sales income account
* Setup an Other Charge as 'XYZ Commission' at 8%
* Point this at an Other Current Liability- XYZ Other
* Setup a COGS Account called COGS-XYZ
* Setup a Service item called XYZ Fee
* Pointed this at COGS-XYZ at -8% with a sales price of zero

Then create a group, and add the following:
* On the first line add the service XYZ
* On the second line add the other charge (XYZ Other)
* On the third line add the service item (XYZ Fee)
* Type the description in the group description line.

Set the group to not print all lines so the customer does not see the commission.

When you sell the service use the group item. On screen you will see the fee computed, but when you print or print preview the invoice, the fees will not be shown.

No comments: