{"id":4861,"date":"2017-04-25T07:00:41","date_gmt":"2017-04-25T11:00:41","guid":{"rendered":"https:\/\/www.method.me\/blog\/?p=2097"},"modified":"2025-12-06T06:18:15","modified_gmt":"2025-12-06T11:18:15","slug":"sales-commissions-tracking-quickbooks","status":"publish","type":"post","link":"https:\/\/www.method.me\/blog\/sales-commissions-tracking-quickbooks\/","title":{"rendered":"How to add a sales commission tracker in QuickBooks"},"content":{"rendered":"\n

How to record commission payments in QuickBooks<\/h2>\n\n\n\n

Drawing from our experience, recording commission payments in QuickBooks<\/a> isn\u2019t simple. While you can pay out commission through QuickBooks, calculating and tracking the commission is the hard part. More on this later.<\/p>\n\n\n\n

For QuickBooks Desktop and QuickBooks Online users, the pay out process slightly differs. Let\u2019s dive into this first. <\/p>\n\n\n\n

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Sick of manually adding invoices into QuickBooks?<\/h3>\n\n\n\n
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Let Method automate it<\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n

For Online users:<\/h3>\n\n\n\n

Depending on how your business operates, QuickBooks Online differentiates between commission as an employee\u2019s salary or as additional pay. To record commissions:<\/p>\n\n\n\n

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  1. Go to \u201cEmployees\u201d, in the \u201cPayroll\u201d menu.<\/li>\n\n\n\n
  2. Select your employee.<\/li>\n\n\n\n
  3. In \u201cPay types\u201d, select \u201cStart\u201d or \u201cEdit\u201d.<\/li>\n<\/ol>\n\n\n\n

    After trying out this product, this is where the process splits. If commissions operate as your employee\u2019s salary, select \u201cCommission only\u201d under the \u201cPay type\u201d dropdown menu, and click \u201cSave\u201d.<\/p>\n\n\n\n

    If commissions instead count as additional pay, select \u201cCommission\u201d in the \u201cCommon pay types\u201d section. You can change the details of the commission by selecting \u201cEdit\u201d. When you\u2019re finished, click \u201cSave\u201d.<\/p>\n\n\n\n

    That\u2019s how you process commission payouts in QuickBooks Online. Now, onto QuickBooks Desktop. <\/p>\n\n\n\n

    For Desktop users:<\/h3>\n\n\n\n

    After putting it to the test, adding commissions in QuickBooks Desktop is a two-step process. First, you must set up a commission pay item. To do so, follow these instructions:<\/p>\n\n\n\n

      \n
    1. In \u201cLists\u201d, select \u201cPayroll Item List\u201d.<\/li>\n\n\n\n
    2. Under the \u201cPayroll Item\u201d dropdown menu, click \u201cNew\u201d.<\/li>\n\n\n\n
    3. Select \u201cCustom Setup\u201d, then click \u201cNext\u201d.<\/li>\n\n\n\n
    4. Select \u201cWage\u201d, then click \u201cNext\u201d.<\/li>\n\n\n\n
    5. Select \u201cCommission\u201d, then click \u201cNext\u201d.<\/li>\n\n\n\n
    6. Enter the name of the item, then click \u201cNext\u201d.<\/li>\n\n\n\n
    7. Select the appropriate Expense account for the item, then click \u201cNext\u201d and \u201cFinish\u201d.<\/li>\n<\/ol>\n\n\n\n

      Once this first step is complete, you can then include this item in your commissioned employee\u2019s profile. To do so, follow this process:<\/p>\n\n\n\n

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      1. In \u201cEmployees\u201d, select \u201cEmployee Center\u201d.<\/li>\n\n\n\n
      2. Double-click on the employee in question.<\/li>\n\n\n\n
      3. Select \u201cPayroll Info\u201d.<\/li>\n\n\n\n
      4. In \u201cEarnings\u201d, add the payroll item that you created in Step 1, and click \u201cOK\u201d.<\/li>\n<\/ol>\n\n\n\n

        While it allows you to record commission payments, QuickBooks does not currently offer a commission tracker. Based on our observations, adding sales commission tracking in QuickBooks is a challenge that many businesses face when handling payout for their QuickBooks reps. <\/p>\n\n\n\n

        Luckily, there are many workarounds you can use to give your QuickBooks reps the sales commission they deserve. <\/p>\n\n\n\n

        If you need a commission tracking solution to monitor the commission that you pay your sales reps<\/a>, you\u2019ve come to the right place. Based on our firsthand experience, implementing an employee commission tracking application eliminates accounting mistakes, payroll uncertainty, and keeps your employees happier. <\/p>\n\n\n\n

        If you want enterprise sales commission reporting and a commission tracking app, Method<\/a> CRM is an absolute must.<\/p>\n\n\n\n

        This article will explain the importance of tracking commission and explain your options.<\/p>\n\n\n\n

        Let\u2019s begin!<\/p>\n\n\n\n

        Commission trackers: The basics<\/h2>\n\n\n\n

        As the name suggests, commission tracking is the act of keeping tabs on the commission that your sales reps earn.<\/p>\n\n\n\n

        This process involves calculating the commission-based sales compensation that you may owe to your team and paying it out on time.<\/p>\n\n\n\n

        Since commission is often a substantial part of a sales rep’s compensation, you want to make sure that you accurately track and pay their commission. This is best done using a commission tracker. <\/p>\n\n\n\n

        What is a commission tracker?<\/h3>\n\n\n\n

        A commission tracker is a tool that you use to track sales commission amounts. <\/p>\n\n\n\n

        Using a commission tracker is the best way to stay up to date with the commission your sales reps earn. Whether that be with a spreadsheet, or through the use of commission tracking software. <\/p>\n\n\n\n

        The most common way of tracking commission used to be spreadsheets like Excel and Google Sheets. Although Excel does provide flexibility when tracking commission, this method: <\/p>\n\n\n\n