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How to add a recurring bill transaction template for management commissions
How to add a recurring bill transaction template for management commissions

Create a template to re-use each month for management commissions

Updated over a week ago

NOTE - this is a manual process and should only be used if your are not using our automated management commissions feature. For more information about how to setup your automated commissions, click here.
Before calculating and recording management commissions, be sure to reconcile revenue to ensure all transactions are captured in QuickBooks Online that impact commissionable revenue.

Follow the steps outlined below to create a monthly, recurring bill transaction template for management commissions.

  1. In the QBO sidebar menu, select +New, and under Vendors, select Bill.

  2. In the Vendor dropdown field, select the management company name, and the Mailing Address field will automatically populate the address recorded in the management company’s vendor profile. In the Terms dropdown field, select “Due on receipt.” Input the Bill date as the last day of the month corresponding to the period of the management commissions being recorded. In the Bill no. field, input “MC-Mo.XXXX” (MC-Jan2023) for the appropriate month and year.

  3. In the Category Details section, select “Management Commissions (PM)” for the CATEGORY. Input “Monthly Management Commission” in the DESCRIPTION field.

  4. In the same line under the Category Details section, enter the total amount of the monthly net commissionable revenue for all owner listings with a negative value in the AMOUNT field. Select the management company as the CLASS. Leave the CUSTOMER field blank.

  5. In the Item Details section, select the “Owner Charges: Management Commission” account for the PRODUCT/SERVICE field and input “Monthly Management Commission” in the Description field.

  6. In the same line under the Item Details section, input the total amount of net commissionable revenue for a selected listing in the QTY field and the percentage commission charged in decimal format in the RATE field for the specific listing. The total commission amount for the selected listing will be automatically calculated in the AMOUNT field. Leave the CUSTOMER field blank, and input the owner listing in the CLASS field.

  7. Repeat steps 5 and 6 in the Item details section for each listing, and ensure that the bill nets to zero for the BALANCE DUE total in the upper right hand corner of the bill. The total amount under Category Details input in the AMOUNT field as a negative value summed with the positive commission amounts for each listing in the Items Details section input in the AMOUNT fields as positive values, should net to zero.

  8. To make this a monthly recurring transaction, select Make Recurring at the bottom of the screen for the zero balance bill.

The net commissionable revenue amounts for each listing should be accessed by running a balance sheet by class for the entire month by accessing Reports from the sidebar menu and running a Balance Sheet Report for the entire month with Display Columns ByClasses.”

The total net commissionable revenue amount for each class/listing that is used to calculate the commission amount input in the Item Details section in the QTY fields will be found under the balance sheet line values *Trust Liabilities titled “Total a. Net Commissionable Revenue.” This total amount should only be input into the commission template once the cash, clearing accounts, revenue, and accounts receivable accounts have been reconciled.

9. To make this a monthly recurring transaction, select Make Recurring at the bottom of the screen for the zero balance bill.

10. A new Recurring Bill screen will appear to create your monthly management commission template. Name your recurring bill template “Monthly Management Commissions” in the Template Name field, select “Scheduled” in the Type field, and leave the “days in advance” field blank. Select the management company name in the Vendor field. In the Interval section, input Monthly on day, Last of every 1 month(s) with a Start Date of the last day of the first month recorded. For the End field, select “None.” The Mailing Address will auto populate according to the management company’s vendor profile, and in the Terms field, select “Due on receipt.”

11. At the bottom of the screen, select the green icon “Save template” to save your scheduled recurring bill. Each month, you will need to access the recorded scheduled entry and edit and save the commissionable revenue amounts for each listing under the Item Details section and record the corresponding total negative value in the Category Details section.

12. To access your created template, select the setting icon (gear icon to the right of the bell icon), and select “All lists” under the LISTS column.

13. Select “Recurring Transactions” to access your newly created template.

If you wish to edit the template, select the blue Edit link to make changes.

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