FVS Accounts Solution

SALSMAN (SUPPLIERS) COMMISIONS

Problem:

How do we pay a commission to a salesman?

Solution:

Don't put these in as credit notes because amounts recorded using credits notes enter a –ve sale into the sales ledger (thus making your reported sales incorrect.)

The correct way to handle is a commission paid to a salesman is as follows:

Step 1: Set up a new Posting Template.

Go to General Ledger Management \ Set Up \ Set Up Posting Templetes.

Set up an template as follows:

Transaction	SKB Salesman (Suppliers) Commissions.
Posting 1 (Credit)
Account:	420 Cash On Hand Account.
Posting 2. Debit.
Account	257 Sundry Expenses

Click Save

Step 2: Use the new Posting Template.

Go to General Ledger \ Account Transfers \ Account Transfers.

Call up Template : SKB – Salesman (Suppliers) Commission

Enter the amount you are paying back (Cash)

Leave the Cheque Number empty.

Notes: The transaction is recorded to the Transaction Log for future posting. When you Post the GL up the date of entry data is recorded to the General Ledger.

Use an account record card if you wish to keep a record of payments due. Only perform the transaction above on the day you give back cash.

Step 3: To cancel out any –ve balance you previously created for salesman's commission got do the following:

Go to Menu Option 6. 2 Payments in \ Invoice Summary Payments.

Call Up the Account

Put in a –ve total to correct an overpayment

Click Process.

Note: Putting in –ve balances will cancel any outstanding (–ve) unallocated balance.