When a finance company makes payment for one of the company's debtors and the payment includes a commission component, Jim2 allows entering the actual amount received, then allocating some of the money to the Commission Received general ledger income account.
Open the debtor record. Process the payment for the entire amount of the payment from the finance company, including the commission component.
Because the payment will normally be more than the debtor’s due amount (the difference would be the commission amount), saving the transaction will create a credit balance for that debtor.
Use a debtors adjustment up (to adjust them up to zero from a negative balance) to handle the commission, remembering to use tax code X for this transaction.
Allocate the debtors adjustment up to the general ledger account that is used to track such commission (see 
below). Jim2 will create an entry for that debtor, which can be paid using the credit created when the cheque was received.
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It is important to understand that the bank now shows the correct total of the payment received. The debtor now doesn't owe their portion and the commission portion has been accumulated correctly in the general ledger. If there is a separate deposit for the commission, link the debtor portion and the commission portion together in the Bank Reconciliation. |
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