Difference between revisions of "How do I account for finance commission?"
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Tim Laundon (talk | contribs) (Created page with "{{Review}} ==Summary== The following article explains how to deal with Finance Commission. ==More Information== When you sell a vehicle that is on a finance deal, the finance co...") |
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==Summary== | ==Summary== | ||
The following article explains how to deal with Finance Commission. | The following article explains how to deal with Finance Commission. | ||
==More Information== | ==More Information== | ||
| − | When you sell a vehicle | + | When you sell a vehicle on finance, the finance company may pay you commission on that deal. To account for this you need to post a negative expense against the vehicle, and also account for the payment received from the finance company. |
=== Logging the commission against the vehicle=== | === Logging the commission against the vehicle=== | ||
| − | * Go to | + | * Go to {{Menu|Vehicle Sales|Add or Edit Vehicles}}. |
* Type in the stock number of the required vehicle or {{KeyPress|search}} for the vehicle. | * Type in the stock number of the required vehicle or {{KeyPress|search}} for the vehicle. | ||
| − | * | + | * Press {{KeyPress|Edit}} to go into the vehicle. |
| − | * Press {{KeyPress|F7}} to open | + | * Press {{KeyPress|F7}} to open the {{DataPrompt|Expenses}} pop-up. |
* Click {{KeyPress|Add}} to add a new expense. | * Click {{KeyPress|Add}} to add a new expense. | ||
* Enter a date for the commission and a description of finance commission. | * Enter a date for the commission and a description of finance commission. | ||
* In the {{DataPrompt|Cost:}} field, enter the commission amount as a negative figure. | * In the {{DataPrompt|Cost:}} field, enter the commission amount as a negative figure. | ||
| − | * Use a category of | + | * Use a category of {{DataValue|COM}}. If this category doesn't exist, add a new one. |
| − | * In the {{DataPrompt|Type:}} | + | * In the {{DataPrompt|Type:}} field, select {{DataValue|Vehicle}}. |
* Click {{KeyPress|Done}} and {{KeyPress|Accept}} to save the expense. | * Click {{KeyPress|Done}} and {{KeyPress|Accept}} to save the expense. | ||
=== Posting the commission in the accounts === | === Posting the commission in the accounts === | ||
When the commission statement arrives, you need to create an invoice to the finance company. | When the commission statement arrives, you need to create an invoice to the finance company. | ||
| − | * | + | * Go to {{Menu|Accounts|Sales Ledger|Sales Ledger Postings}}. |
* Enter the finance company in the {{DataPrompt|Customer:}} field. | * Enter the finance company in the {{DataPrompt|Customer:}} field. | ||
| − | * Enter | + | * Enter the commission amount as an exempt figure. |
| − | * Post the invoice to a centre that links to | + | * Post the invoice to a sales centre that links to {{DataValue|Sales F&I Commission}} on the Profit & Loss. If a centre doesn't exist, see [[How do I Create a Nominal Code?|here]] for details on how to create one. |
* When you receive notification of payment, pay the invoice off to the bank account. See [[Posting Payments Received|here]] for details on how to do this. | * When you receive notification of payment, pay the invoice off to the bank account. See [[Posting Payments Received|here]] for details on how to do this. | ||
Revision as of 12:06, 2 July 2012
Contents
Summary
The following article explains how to deal with Finance Commission.
More Information
When you sell a vehicle on finance, the finance company may pay you commission on that deal. To account for this you need to post a negative expense against the vehicle, and also account for the payment received from the finance company.
Logging the commission against the vehicle
- Go to " Vehicle Sales Add or Edit Vehicles".
- Type in the stock number of the required vehicle or <search> for the vehicle.
- Press <Edit> to go into the vehicle.
- Press <F7> to open the "Expenses" pop-up.
- Click <Add> to add a new expense.
- Enter a date for the commission and a description of finance commission.
- In the "Cost:" field, enter the commission amount as a negative figure.
- Use a category of 'COM'. If this category doesn't exist, add a new one.
- In the "Type:" field, select 'Vehicle'.
- Click <Done> and <Accept> to save the expense.
Posting the commission in the accounts
When the commission statement arrives, you need to create an invoice to the finance company.
- Go to " Accounts Sales Ledger Sales Ledger Postings".
- Enter the finance company in the "Customer:" field.
- Enter the commission amount as an exempt figure.
- Post the invoice to a sales centre that links to 'Sales F&I Commission' on the Profit & Loss. If a centre doesn't exist, see here for details on how to create one.
- When you receive notification of payment, pay the invoice off to the bank account. See here for details on how to do this.
See also
- How do I Post Expenses against a Vehicle?
- How do I Create a Nominal Code?
- Posting Payments Received
