QuickBooks enables you to track the commission paid to the employees. Two prerequisites of setting up this are you should have already set up the employees data and you must be knowing how much commission you wish to pay. The following are the steps that you will require to carry out to pay commission in QuickBooks.
- Set up the commission item.
- Add this commission item to the employees’ record.
- View reports.
If there are various types of the commission that you wish to track separately, then you will require to use separate payroll item for each type of commission. The detailed description of how to carry out the aforesaid steps is as under.
- Set up the commission item
- In the QuickBooks go to Lists and then click on Payroll item list.
- At the bottom left of the Payroll item list, you will find a drop-down menu of Payroll Item. Click on the drop-down menu and select new.
- Click on Custom Setup and then click on next.
- Under the payroll item type choose Wage and then click on next.
- In the wages list select commission and then click on next.
- Enter the item name which will print on the payroll checks and reports and click on next.
- Enter the Expense account and click on next.
- In the default, window enters the amount or the percentage that you wish to add to calculate this commission. For percentage add the % symbol after the number. This number can be changed anytime while using the commission item.
- Click on Finish.
- Add this commission item to the payroll records.
- In the QuickBooks go to the employees’ menu at the top and click on Employees center.
- Now double click on the employee’s name.
- Click on the Payroll info tab.
- Add the commission item under the earnings by clicking in the white box and choosing the item from the drop-down list.
- In the rate, column enters the rate of commission.
|Note: While generating the payroll you should be able to see the commission item in the preview paycheck window|
For viewing the reports showing the commission item carry on the following steps.
- Click on the reports and select Custom transaction detail report.
- Click on customize report in the upper left corner.
- On the display, the tab sees the name and the source name.
- Under the filter type, set the transaction type as a paycheck.
- Set the payroll item to the commissioned item on the paychecks and click on OK.
The report will be generated with the commission details.
Thus the aforesaid is the method of setting up the commission in QuickBooks and adding it to the payroll. If you are facing any trouble in understanding the aforesaid procedure then kindly get in touch with our QuickBooks ProAdvisor Support team on our Toll-free Number ✆+1-800-796-0471. We have a pool of trained technical professionals who will quickly teach you how to carry on the said procedure.
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