How do I account for finance commission?
From Catalyst
Contents
Summary
The following article explains how to deal with Finance Commission.
More Information
When you sell a unit on finance, the finance company may pay you commission on that deal. To account for this you may want to post a negative expense against the unit, and also account for the payment received from the finance company.
Logging the commission against the unit
- Go to " Unit Sales Add or Edit Units".
- Type in the stock number of the required unit or <search> for the unit.
- Press <Edit> to go into the unit.
- 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 'Unit'. This will reduce the general expenses against the unit.
- 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.
 | If Platinum is being used with the unit sales integration to the nominal and you post the commission against the individual units, the invoice will need to be posted to 'Unit Expense Accruals' to clear the debit created. |
- 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 unit?
- How are unit expenses classified?
- Unit expenses explained
- How do I create a nominal code?
- Posting Payments Received
- How do I post expenses against a unit?
