Credit notes
We sell to customers through an intermediary. We invoice the customer with a copy of invoice to the intermediary. The intermediary deducts their commission and makes payment to us leaving a shortfa...
Forum Discussion
Thanks Doreen, I will do that for future transactions however existing transactions are showing an amount outstanding which is equal to the commission. How do I debit the commission account and credit customers account?
Thanks
Chris
Hi chriswilkinson,
You're right, those existing invoices certainly need to be accounted for too. For those older ones, you can just use a credit note to clear the commission. Enter a service credit note for the commission amount to your commission expense account, then go to Sales > Sales Register > Returns & Credits and Apply to Sale against the original invoice. That’ll debit the commission expense and close off the invoice.
Cheers,
Genreve
