Sales commissions are challenging in QuickBooks because there is no mechanism for actually calculating them. You can set up your sales reps and track your sales, but then you have to calculate your commissions outside of QuickBooks in order to come back to QuickBooks and post the bills so that you can pay your sales reps. If you only have a few sales reps it is easy. You set up your sales reps, track your sales, run a report, get a calculator, do the math and enter a bill. It is when you have several sales reps and they may be at different rates that things start to get a little more involved. Wouldn’t it be great to have a system in place so that you could calculate all of this in minutes? You can, and most of it can be done in QuickBooks. The rest can be done in excel. This is the first in a short series of posts that will give you the basics on this. If you want it, I have a full 1 hour recording that walks you through how to set up all of this step by step. The download also includes the template that I’ve created, which you will see demonstrated in these videos (free and full versions). There is a bonus section at the end of the video that shows you how to write the formulas in excel for those who care to learn. This kind of knowledge can help you to create other useful tools in excel.
The first step to tracking sales commissions in QuickBooks is setting up your sales reps. That is what this screen cast will show you. You can set up any vendor or employee as a sales rep, so anyone who is paid commissions as a percentage of sales will need to be set up as a Sales Rep in QuickBooks so that sales can be tracked by sales rep in order to figure out how much they need to be paid in sales commissions.
Click the Television to watch Sales Commissions – How to Set Up Sales Reps In QuickBooks:
The next post will show you how to run the report you need in order to calculate commissions and then demonstrate how to use my template to complete the calculations.