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Agents Commission GST

Chris_SHCC1Chris_SHCC1 Member Posts: 21

Hi all

New user here!

I have agents sell my services. I send them an invoice minus their 20% and they pay. All easy enough.

But then I need to record the commission as an expense with GST. This won’t be seen on my bank statement. How do I record this in Wave?

I need to see this expense and GST in the reporting but be able to reconcile the transaction page with the bank feed.

Make sense?

Many thanks
Chris

in Accounting Technical Support

Comments

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @Chris_SHCC1.

    So if I understand correctly, you need to see an expense for the amount of the commission, which calculates the GST backwards (as included in the commission), is that right?

    It'll change your invoicing process a bit, but we can make that work. Here's what you'll have to do.

    • First, create a Money in Transit asset account on the Chart of Accounts page. You can name it what makes the most sense to you. This is where payments for your invoices will go before the commission goes through. You'll also need a "Agents' Commission" expense account.
    • When you make an invoice, make it for the full amount (even if that's not what you'll receive). You can enter the amount that your agents will actually send you in the Notes section.
    • When an invoice is paid, record the payment to your new Money in Transit account.
    • Then, record an expense on your Transactions page against that Money in transit account for the amount of the commission. Categorize it as "Agents' Commission.
    • Click on "Include Sales Tax" for that transaction, and pick the GST.

    It's a few extra steps, but it"ll ensure everything is recorded properly. Does that help out?

  • Chris_SHCC1Chris_SHCC1 Member Posts: 21

    Hi Alexia

    Many thanks for that.

    Let me have a look at that and I'll get back to you!

    Many thanks
    Chris

  • Chris_SHCC1Chris_SHCC1 Member Posts: 21

    Hi Alexia

    This will sort of work but it would be great to have a line entry to the Expense (Agents Commision) so the numerical total shown on the invoice is correct. From experience people tend not to look at the "Note".

    Any way of doing this?

    Regards
    Chris

    edited November 7, 2018
  • ErikErik Member Posts: 194 admin

    Hi @Chris_SHCC1

    At this time, expenses cannot be accounted for directly on the invoice. However, I can certainly raise this as a feature request to our Product Team

  • Chris_SHCC1Chris_SHCC1 Member Posts: 21

    Please do Erik. It would be a great step to be able to allocate expenses and deductions on an invoice.

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