Recently I showed you how to record the sale of a home for a real estate broker, in QuickBooks Online. Now we’re going to look at how to record a sale for real estate agents in QuickBooks Online.
The basic process is identical. It’s just the layout that looks a little different. The best way to think about this, is that the broker derives their income from the client. The agent drives their income from the broker.
Assuming you want the greatest amount of detail possible, you will set the broker up as your customer. Then you can set up the client as a sub-customer, and then the listing as a sub-customer of the client. So you’re three levels deep.
Once you have this structure in place, you can track your listings by Broker, Customer, and then the listing itself. Most of the work is going to be done at the listing level, but this gives you context for what planet that listing exists on.
The Calculation is fairly simple. The Broker gets (eg) 5%, and the agent gets (eg) 80% of that 5%. So if the listing sells for 1.5m, then the broker gets $75,000, and then pays out $60,000. Watch the video for a more detailed illustration of how this works.