In the retail industry, it’s not uncommon for sales reps to earn commissions. Most sales reps are still paid wages or salary, but they’ll earn a bonus based on the number of sales they generate. Known as commissions, they are designed to motivate sales reps. If your business’s employees earn commissions, though, you’ll need to track them. Fortunately, Quickbooks offers a simple and easy way to track commissions.
The Basics of Tracking Commissions in Quickbooks
Quickbooks Online doesn’t offer a specific feature for tracking commissions. Instead, it offers class tracking and location tracking. You can use either of these options to track commissions. Class tracking and location tracking are included as a native feature in Quickbooks Online. With either of these options, you’ll be able to track the commissions earned by your business’s employees.
How to Enable Class or Location Tracking
You can enable class tracking or location tracking in Quickbooks Online by clicking the gear icon and choosing “Account and Settings.” From the left-hand menu, select “Advanced.” You should now see a window containing various account settings. Look for “Categories,” and click the small pencil-shaped icon next to it. Quickbooks will then expand the “Categories” section so that it contains an option for “Track classes” and an option for “Track locations.” Click the box next to either one of these options to enable class or location tracking.
Using Class or Tracking to Track Commissions
With class tracking or location tracking enabled, you can now track commissions. This is done by adding your sales reps to a list. If you use class tracking, you’ll need to add them to a class list. If you use location tracking, on the other hand, you’ll need to add your sales reps to a location list. Class tracking and location tracking both use lists. When you include a sales reps on a class or location list, you’ll be able to track the commissions he or she earns.
Quickbooks will automatically categorize your sales reps on the list to which you add them. Location tracking is typically used for tracking specific locations. With that said, you can use it to track almost any element or segment of your business’s operations, including commissions. Just add the sales rep to a list, after which you pay the sales rep the commission. You can then run a report to view all of the commissions earned by the sales rep.
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