Commission based sales setup

RoBeCo

Hi,

My company sells Films and TV shows for producers on a commission basis. When we started using Wave we kept all these commission based calculations separate on an excel sheet. We also just recorded all invoices we sent and gotten paid in respective income accounts. When tax season came we hit a wall and had to do our numbers again by hand.
I'm trying to figure out how correctly record this in Wave as our invoicing and reporting is obviously not correct within Wave.

I have come up with the following setup.

Under Liabilities, I've setup an account for each film under Vendors. When the invoice payment comes I create a Journal and move the payment to the Liability account for that film.

When it's time to pay out, we send out a check or bank transfer. And when it clears, we categorize it to the Films liability account.

Then I add an income deposit for the commission amount from the same liability account to a Sales Commission income account. Zeroing the Liability account.

Am I correct in doing this this way?

JulianP

Hey there @RoBeCo !

Hmmm. This one is a bit tricky to be frank. As much as we try to help answer every question we get, this one may be better suited for an accounting professional. Our support team is trained to help you find the best way to use Wave, but this is a bit outside of what we can advise on.

You can also see what other entrepreneurs have done to solve a similar problem in a pre-existing discussion, or find an accountant near you in our Community forum.