Q: What is the correct way of recording a sale of a property for a real estate agency? (i.e. the commission earned). QuickBooks asks for an item code on the invoicing screen (i.e. Stock item), but the properties are not owned by the estate agency.
A: As an agency even though you do not own the property, you need to track the commission when you make the sale, as well as the name of the buyer, seller and the property name. Create an invoice and enter the details in the description.
You can only use items on Invoices. For commission earned – create an item and link it to income account called income.