Can QuickBooks calculate commissions?
Track sales commissions in QuickBooks Online.
QuickBooks Online currently does not have a calculation feature for sales commissions.
However, there is a way for you to track your sales by employee, sales rep, etc.
using its two tracking features: Class Tracking and Location Tracking.
How do I enter commissions in QuickBooks?
To set up a commission item:
- In QuickBooks Desktop, click Lists > Payroll Item List.
- At the bottom left of the Payroll Item List, click the Payroll Item dropdown button, and choose New.
- Select Custom Setup and click Next.
- In Payroll item type choose Wage.
- From the Wages list, choose Commission.
How do I record commission expenses in QuickBooks?
Open the Start menu and type “Quickbooks.” Click “Quickbooks” from the list of results. Click “View,” and then “Sales.” Search for the sale item using a piece of information, such as a date or customer name. Right-click the sale and click “New,” then “Expense Item.” Check “Deduct” and enter the amount of commission.
How do you account for commission income?
Under the cash basis of accounting, you should record a commission when it is paid, so there is a credit to the cash account and a debit to the commission expense account. You can classify the commission expense as part of the cost of goods sold, since it directly relates to the sale of goods or services.