How to Calculate Sales Rep Commissions in QuickBooks
Sales by Rep Detail report
This report is a more detailed version of the sales by rep summary report. In addition to showing sales income from each sales representative, this report lists the sales transactions that contributed to each sales total. Initially, the report shows sales for the current month, but you can change the period of time covered by the report by choosing a different date range from the Dates list.
The report includes income from parts, services, and other charge items recorded on an invoice or sales receipt. It does not include income from sales tax or reimbursed expenses.
This report can be useful if you pay your sales representatives a commission. This report sorts each item on each invoice by sales rep. In addition, it lists the original invoice line item amount and the amount paid. If the invoice was partially paid, the sales rep gets credit only for the amount that was paid.
You may want to view this report on a cash basis, even if your organization usually uses the accrual method. If you view this report on a cash basis, it won’t show what was sold during this time period; instead, it will show what the customer paid during this time period. Cash flow problems can occur if you pay your sales reps a commission before your customer pays you. You can change the basis of the report to view the information in the way that is most useful for your organization. If the report you’re working with is a summary report (a report that summarizes transactions instead of listing them), you can change its basis from cash to accrual or vice versa.
- In the Report window, or the Report Finder, click Modify Report.
- Select either Cash or Accrual as the report basis.
- Click OK.
For information in this report to be accurate, create sales reps in QuickBooks.
- From the Lists menu, choose Customer & Vendor Profile Lists, and then choose Sales Rep List .
- Click the Sales Rep button and choose New.
- Enter the name in the Sales Rep Name field and click OK (or Next, if you’re planning to add several sales reps now).
- If the sales rep is not already entered on your vendor, employee, or other names list, you’ll be prompted to add it.
The Sales Rep list is separate from your employee list and doesn’t link to your employee information, so you can add in-house reps (employees) and outside sales reps (non-employees) to the list.
- Assign a sales rep to every invoice in QuickBooks. To do this, enter the name of the sales rep into the Rep field on the invoice.
- Generate a draft of the report.
- Before calculating the commission owed to each sales rep, look at the bottom of the report. If you see “No sales rep” listed in place of a sales rep name then some invoices were not assigned a sales rep. Double-click each invoice line to QuickZoom to it, then assign a sales rep to each invoice before calculating commissions. If you don’t see “No sales rep” listed, you are ready to calculate your sales commissions.
The amount you owe the sales rep is not calculated on this report, however you can export this report to Excel, enter your sales commission percentage, and let Excel do the calculations.
To create this report
From the Reports menu, choose Sales and then Sales by Rep Detail.
This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.