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Track commissions on 1099 vendors without using payroll

You can assign a commission percentage to a nonemployee sales representative, such as a 1099 vendor. Just follow these steps.

Detailed Instructions

You need to set up sales reps, custom fields, and custom forms to track and pay commissions to non-employee representatives.

Step 1: Add commission information to a sales form:

  1. Edit the item(s) in the item list for which a commission may be applied when used on an invoice or sales receipt.
  2. Click the Custom Fields button.
  3. In the Custom Fields window, click the Define Fields button.
  4. Select an empty box in the Use column, and then in the Label column, enter a name such as Commission
  5. Click OK.
  6. In the new field, enter the amount of the commission:
    • Enter the commission as a decimal if it is a percentage, such as .15 for 15%.
    • Leave the field blank if the rate will fluctuate.
  7.  
  8. Click OK.

Step 2: Customize the Invoice (or Cash Receipt) template to include commission and sales rep:

  1. Open a blank Invoice.
  2. Click the Customize button on the invoice.
  3. In the Basic Customization window, click the Manage Template button.
  4. Select Intuit Product Invoice from the list of available templates.
  5. Click the Copy button.
  6. Name the template, for example, Product Invoice with Commission.
  7. Click the OK button.
  8. Click the Additional Customization button.
  9. Click the Columns tab.
  10. Select the Screen checkbox only for the Commission column. 

Step 3: Run the Sales by Rep Detail report

Benefits of this report:

  • It is more detailed than the Sales by Rep Summary report.
  • It lists transactions contributing to the total.
  • It does not include income from sales tax or reimbursed expenses.
 

Important considerations:

  • Run the report on a cash basis to pay commissions on those sales that are paid for.
  • Every invoice must have a sales rep assigned.
  • Check the bottom of the report for No Sales Rep. Double-click this item and then double-click transactions to assign a sales rep to these transactions.
  • Export the report to Microsoft Excel to make calculating commissions easier.
KB ID# HOW13497
12/5/2016 12:40:55 PM
QYPPRDQBKSWS07 9138 Pro 2017 3a3e79