After you have set up your GL accounts for commissions, you can pay commissions in aACE using two methods: creating a disbursement or creating a General Journal entry.
Create a Disbursement
- Navigate to Menu > Accts Payable > Disbursements.
- In the menu bar, click New > Other.
- In the new disbursement record, select the entity you want to pay, either the internal company for your sales rep or a third-party company.
- Specify the commission payment in the Amount field.
- In the GL Account line, select the commission liability account that you want to pay down (e.g. Commissions Payable), then enter the Amount.
- Click Save, and at the confirmation dialog, click Post.
To leave the disbursement in Pending status, click Not Yet.
Create a General Journal Entry
You can use this method if your commissions are paid through a third-party payroll service.
If you use this method, be sure you're consistently "paying down" the commissions liability account. When you're doing your General Journal entry for payroll, the line items will account for your payroll, including such things as salary, benefits, and processing fees, as well as commissions.
- Navigate to Menu > Accounting > General Journal and create a new journal entry for your payroll.
- Select the commissions liability account in the GL Account field and enter the amount in the Debit field.
- Create an offsetting entry, which will be a Credit against your bank account.
Note: Your payroll process will typically include more than these few steps for commissions. Check with your accountant for guidance.