How do I account for finance commission?

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 " Unit 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'. This will reduce the general expenses against the 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\Systems 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

• Getting Started
• Getting Started - Vehicle Sales
• Getting Started - Accounts
• How do I Post Expenses against a Vehicle?
• How do I Create a Nominal Code?
• Posting Payments Received

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