{"id":22931,"date":"2023-04-03T12:13:32","date_gmt":"2023-04-03T16:13:32","guid":{"rendered":"https:\/\/www.method.me\/?post_type=guide&p=22931"},"modified":"2025-12-14T11:06:24","modified_gmt":"2025-12-14T16:06:24","slug":"how-to-set-up-commission-in-quickbooks-online","status":"publish","type":"post","link":"https:\/\/www.method.me\/blog\/how-to-set-up-commission-in-quickbooks-online\/","title":{"rendered":"How to set up commission in QuickBooks Online"},"content":{"rendered":"\n
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Commission provides your employees an incentive to deliver the best results for your company. However, employee commission is a little trickier to calculate for payroll than consistent periodical salaries, since commission changes every paycheck.<\/p>\n\n\n\n

Luckily, many accounting software solutions accommodate commission tracking, including QuickBooks<\/a> Online. The key is knowing how to set up QuickBooks Online commission tracking in a way that makes the most sense for your business. <\/p>\n\n\n\n

Keep reading to find out how to set up commission in QuickBooks Online, as well as how to automate the commission tracking process to ensure that you get more done in less time. <\/p>\n\n\n\n

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Grow your business without leaving QuickBooks Online.<\/h3>\n\n\n\n
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Build on QuickBooks<\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n

The importance of sales commission tracking<\/h2>\n\n\n\n

Before learning how to set up commission in QuickBooks Online, you must first understand the importance of sales commission tracking. <\/p>\n\n\n\n

Sales commission tracking is the process of recording your employees\u2019 sales for the purpose of calculating their commission.<\/p>\n\n\n\n

Accurate commission tracking is essential for payroll and employee motivation. On an individual level, sales commission tracking allows your sales reps to track their progress. It provides a clear indication of how close they are to their goals. <\/p>\n\n\n\n

On a broader level, sales commission tracking enables you to evaluate your business\u2019 success and the efficiency of your sales teams.  <\/p>\n\n\n\n

For QuickBooks users, tracking commissions is important for accounting and payroll purposes. This begs the question: How does QuickBooks Online commission tracking work<\/a>?<\/p>\n\n\n\n

Does QuickBooks Online track sales commissions?<\/h2>\n\n\n\n

The short answer is yes, QuickBooks Online can track sales commissions. However, it\u2019s a manual process. This is because you can\u2019t calculate commission on QuickBooks. <\/p>\n\n\n\n

While you’re limited on commission calculation in QuickBooks, you can still track your sales in a way that simplifies commission tracking. Let\u2019s walk through the steps that outline how to set up commission in QuickBooks Online. <\/p>\n\n\n\n

How to set up commission in QuickBooks Online<\/h2>\n\n\n\n

You can set up commission in QuickBooks Online in three simple steps. <\/p>\n\n\n\n

Step 1: Choose between commission as salary or additional pay<\/h3>\n\n\n\n

In QuickBooks Online, you have two options for recording commission. You can set them up as part of your employees\u2019 salary or as additional pay. The one you choose depends on your business\u2019 pay structure.<\/p>\n\n\n\n

You\u2019ll want to record commission through employee salary if your employees\u2019 entire pay is based off commission.<\/p>\n\n\n\n

If your employees have a base salary and you pay commission on top of that, you should choose additional pay. <\/p>\n\n\n\n

Step 2: Start recording commissions in Payroll<\/h3>\n\n\n\n

Here\u2019s how to set up commissions in QuickBooks Online:<\/p>\n\n\n\n

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  1. From the \u2018Payroll\u2019 menu, go to \u2018Employees\u2019.<\/li>\n\n\n\n
  2. Select your employee.<\/li>\n\n\n\n
  3. You should see \u2018Pay Types\u2019. Select \u2018Start\u2019 or \u2018Edit\u2019. <\/li>\n<\/ol>\n\n\n\n

    From here, the process depends on whether commission is your employee\u2019s salary or additional pay.<\/p>\n\n\n\n

    Step 3: Process commissions depending on your chosen type<\/h3>\n\n\n\n

    If you choose to set up commission as employee salary, select \u2018Commission only\u2019 from the \u2018Pay types\u2019 drop-down menu. Then, hit \u2018Save\u2019.<\/p>\n\n\n\n

    If you choose to set up commission as additional pay, look for the \u2018Common pay types\u2019 section and select \u2018Commission\u2019. You can change the commission name by selecting \u2018Edit\u2019. Save the new details and you\u2019re done!<\/p>\n\n\n\n

    While these steps for recording commissions are easy enough, the process is a lot simpler with a commission tracker. This isn\u2019t a current offering for QuickBooks, but there are tools that you can use for QuickBooks Online commission tracking without disrupting your workflow.<\/p>\n\n\n\n

    Let\u2019s take a look at how to track commissions in QuickBooks<\/a> with a tracking tool. <\/p>\n\n\n\n

    QuickBooks Online commission tracking tools<\/h2>\n\n\n\n

    If how to set up commission in QuickBooks Online is your first concern, the next should be how to improve the commission process in QuickBooks Online. The answer is simple: A commission tracker. <\/p>\n\n\n\n

    A commission tracker is a tool used to track your sales reps\u2019 commission. The top commission tracking tools calculate your commission to simplify QuickBooks payroll and ensure that your team gets paid on time.<\/p>\n\n\n\n

    With QuickBooks Online, you can record commission and pay it out, but you must calculate it manually. The classic way of doing this is by using spreadsheets such as Excel or Google Sheets. However, this method is time-consuming and inefficient. <\/p>\n\n\n\n

    Commission tracking software automates your commission process for maximum efficiency. It also ensures accuracy and provides transparency for your sales representatives. <\/p>\n\n\n\n

    The only problem with commission tracking software is that every business is different. A one-size-fits-all solution might not suit your current QuickBooks Online commission tracking process. Luckily, there\u2019s a way to solve this: Custom sales commission software.<\/p>\n\n\n\n

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    Wish you could get more from QuickBooks? Method makes it possible.<\/h3>\n\n\n\n
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    See for yourself<\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n

    Strengthen your commission tracking process with Method<\/h2>\n\n\n\n

    If you\u2019re looking for flexible sales commission software, Method<\/a> is the solution for you.<\/p>\n\n\n\n

    Method is a fully customizable software solution that simplifies the way you manage your customers, sales, and overall business. As the #1 QuickBooks CRM, Method enhances QuickBooks Online commission tracking and makes it one smooth process.  <\/p>\n\n\n\n

    With Method, you can build a commission tracker that\u2019s specifically modeled after your business. You can build the software yourself or get Method\u2019s customization team to bring your vision to life.<\/p>\n\n\n\n

    \"Custom<\/figure>\n\n\n\n

    Here are some features you can include in your commission tracker:<\/p>\n\n\n\n