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Generally there is a requirement from Clients that they need Commission entry directly from Sales Invoice.

Currently your Invoice' Accounting Entry would be something like this:

Customer A/c Dr 100
Sales A/c Cr. 90

Now you want to introduce Commission here But the Commission Amount should not change the Sales & Customer A/c postings.

Insert two Condition Types in your Pricing Procedure as follows:
1. Commission Payable (always Positive)
2. Commission Expenses (always Negative)

Create required GL Accounts & maintain VKOA settings.

The rate of both the above Conditions would be same say 10%.

Now your Invoice's Accounting Entry would be:

Customer A/c Dr. 100
Commission Expenses A/c Dr. 10
Sales A/c Cr. 100
Commission Payable A/c Cr. 10

Now, as Commission is an Sales Expense, it (Debit entry of Commission Expenses) would directly hit Profit & Loss A/c (like other Expenses of Rent, Interest etc...)

For the Credit Charge of Commission charge the End-User will have to manually pass an Accounting Entry which would be as such:

Commission Payable A/c Dr. 10
To Vendor A/c Cr. 10

The above entry would clear the Commission Payable A/c & create a liability of Rs. 10 in Vendor's account.

We have implemented the above scenario at a client site & they are successfully using this arrangement.

As you are already entering Partner Function of Vendor in Sales Order / Invoice, you can anytime create a Z-Report for Commission Payable to each Vendor over a period of time...

Hope this helps,


Jignesh Mehta

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