When a finance company makes payment for one of your debtors, and the payment includes a commission component, Jim2 allows you to use the actual amount received, then allocate some of the money to your Commission Received GL income account.
Open the debtor record for the customer involved. Process the payment for the entire amount of the cheque/direct deposit from the rental company, including the commission component.
Because the payment will normally be more than the debtor’s due amount (the difference would be your commission amount), saving the transaction will create a credit balance for that debtor.
Use a debtors adjustment up (you want 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 GL account you use to track such commission (see 
below). Jim2 will effectively create an entry for that debtor, which you can then pay using the credit created when the cheque was received.
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It is very important that you understand that the bank now shows the correct total of the payment received. The debtor now doesn't owe you their portion and you've accumulated the commission portion correctly in your GL. If you had done a separate deposit for the commission, you would need to link the debtor portion and the commission portion together in the Bank Reconciliation. A bit dangerous, but still technically correct. |
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