Currently for Brokerage we use rebate document which reflects as a credit in AR. Sometimes Brokerage is our existing customer + brokers as well. At times, if the broker is not our customer, the amount released will reflect as credit in AR as one line, with no history of sales on it. Broker will give an invoice to us. Pricing team will raise a PO for this amount and submit the invoice to AP. The amount that was parked to AR earlier (from brokerage agreement) will then be moved to AP GL account.
If AP posting and AR release same month, the amount of AP and AR will net off each other, but if either one side delay in posting, the GL will reflect weird amount (either with positive / negative amount which business has to monitor monthly basis.
Is there a better way to deal with brokerage based on customer sales history? How do we link the broker commission to sales orders without issuing a rebate credit note.
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