How to record commission expense in quickbooks?
To record commission expenses in QuickBooks, you'll typically use the "Expense" or "Check" feature depending on whether the commission has already been paid or if it's accrued. Here's how to record commission expenses in QuickBooks:
1. Recording paid commission expense (Using expense tab): If you've already paid the commission, follow these steps:
- Navigate to the "+ New" button at the top left corner of your QuickBooks dashboard.
- Choose "Expense" under the "Vendors" section.
- Fill out the necessary fields:
- Payee: Select the vendor or individual who received the commission.
- Payment Date: Enter the date the commission was paid.
- Account: Choose the appropriate expense account (e.g., "Sales Commissions Expense").
- Amount: Enter the total amount of the commission.
- Payment Method: Select the method used to pay the commission (e.g., Cash, Check, Credit Card).
- Click "Save and close" to record the transaction.
2. Recording accrued commission expense (Using check tab): If the commission expense is accrued (i.e., it hasn't been paid yet but is owed), follow these steps:
- Navigate to the "+ New" button at the top left corner of your QuickBooks dashboard.
- Choose "Check" under the "Vendors" section.
- Fill out the necessary fields:
- Payee: Select the vendor or individual who earned the commission.
- Check Date: Enter the date the commission was earned or accrued.
- Account: Choose the appropriate expense account (e.g., "Sales Commissions Expense").
- Amount: Enter the total amount of the commission.
- Click "Save and close" to record the transaction.
3. Reviewing and reconciling:
After recording the commission expense, review your transaction history and ensure that it's accurately reflected in your financial reports. You may also want to reconcile your accounts regularly to verify that your records match your bank statements.