Sales commissions
Accounting for salespeople commissions at a trading company: commission accrued on each sale, commissions payable, payment and the generated and paid commissions report in GoSoft.
At a trading company, salespeople usually earn a percentage of what they sell. Unlike real estate, where the commission is generated with each installment collected, here it is normally accrued on each sale. GoSoft records it in the same voucher as the sale and keeps each salesperson's balance payable.
- Write the entry for the accrued commission and its payment.
- Set each salesperson's commission percentage.
- Read the generated and paid commissions report.
The entry
With a sale of 2,541.00 and a 1% commission for the salesperson:
| Account | Debit | Credit |
|---|---|---|
| Sales commission expense | 25.41 | |
| Sales commissions payable (Persona0008 Apellido0008) | 25.41 | |
| Equal totals | 25.41 | 25.41 |
When the period's commissions are paid:
| Account | Debit | Credit |
|---|---|---|
| Sales commissions payable (Persona0008 Apellido0008) | 25.41 | |
| Cash | 25.41 | |
| Equal totals | 25.41 | 25.41 |
If the policy is to pay the commission only when the customer pays, the commission on credit sales stays payable but is not handed over until collection. GoSoft's report distinguishes collected and pending amounts on each sale to apply that policy.
In GoSoft, step by step
On each salesperson's record set their commission percentage (and, if applicable, the second salesperson's).
On each sale, choose the salesperson. When finalized, GoSoft computes the commission and records it as payable.
Open Sales commissions → Generated commissions: by salesperson you see total sold, collected, commission, paid and balance.
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Generated commissions by salesperson with balance payable In Commission payments record the payment: choose the fund, the document and the commissions paid. GoSoft generates the payment voucher.
- Paying commissions without recording the payable: the expense lands in the payment month, not the sale month.
- Recording commissions as merchandise cost: they are a selling expense.
- Not reviewing commissions on voided or returned sales.
A 10,000 sale carries a 2% commission. What entry does GoSoft add?
Debit commission expense 200; credit commissions payable to the salesperson 200.
Where is each salesperson's balance payable shown?
In Sales commissions, Generated commissions tab.
Is the commission cost of sales or a selling expense?
A selling expense.