I'm have a problem here about commission. We have a client, after we have finished the job for him we invoice him £240 (including VAT) and also giving him 20% commission. When he said us, he paid £192 (excluded commission). How will i enter this transaction in sage to against the full amount of invoice?
And, is the "commission" I am talking about here is real COMMISSION? It is more like DISCOUNT to me.
Yes, it is more like a discount than commission. When you enter the payment into Sage you type the amount actually received into the received box and the amount of the discount in the discount box and then click on Save. It clears the invoice on the customer's account and posts the amount of discount to the discounts allowed nominal.
Depends on whether it is commission or a discount? If it is a discount then this is the way to treat it as the VAT has already been accounted for in the original invoice (assuming standard VAT accounting).
Thank you very much for your advice, Pauline. Yes, the main point is to identify wether it is commission or discount. Based on the nature of the trade between the customer, I prefer to treat it as a discount.
But if it really is commission, you would be due a credit on the vat.
Alternatively, if the client is vat registered, they could give you an invoice for the net commission plus vat. Otherwise, say their commission was £50 plus vat, by treating it as a discount, it would cost you £10 in unclaimed vat
create an access in Invoice Entry display in A/R Component of Sage Accpac ERP, choosing the Client No as Source and implement the transaction against this Bill in Apply Papers Area.
