Accounting for fees correctly - Real Estate Commission

Robert_P1

Example:

I sell a home and make $1,000 commission. My brokerage owes me $1,000. I owe technology fees and errors & omissions each month to my brokerage. Instead of paying my brokerage each month, they just take it out of what they owe me. Tech fee = $77 and E&O insurance = $5 for a total of $82.00. When I receive my commission check, it's for $918.00. In Wave, it shows I earned $918.00 even though I actually made $1,000 and then had to pay $82 in expenses. My Wave account is linked directly to my bank account so only the amount deposited shows up as income.

At the end of the year, my 1099 from my brokerage reflects the $1,000 income and not the $918 income amount that I was actually paid. Since my 1099 shows I made $1,000 then I need to show the $82 in expenses, but I cannot split the transaction to reflect $1,000 - $82. It won't let me put an expense in the split so I tried to create a new expense, but I then have to choose an account which I don't have an account to use since I never actually received the additional $82.

How can I document this so my Wave account reflects accurate income/expenses?

Thank you.

Mikeg

@Robert_P1,
You can do a journal entry to gross up revenue.
Debit the appropriate expenses and credit revenue.
From your example. You would only see 918 as sales since that is what was deposited.
Debit Insurance 5
Debit Tech Fee 77
Credit Sales 82
Now sales are at 1000
Expenses are 82.
Net income 918.