Property Sales Commision Recording

Property Sales Commision

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.

Gita Faust

About the Author

Gita Faust has over 30 years of accounting experience in the real estate and property management industry, Gita Faust is more than just a real estate investor; she is also popular for her work as an accountant, consultant, mentor, speaker, QuickBooks Top ProAdvisor, QuickBooks Solution Provider, member of Intuit’s Trainer/Writer Network, and, of course, author. Gita is well-known for her exemplary leadership and advisory skills. In fact, she even helped pioneer the adaptation of QuickBooks to suit the needs of professionals in real estate and property management. To share her knowledge she has written a series of courses titled Simplified Accounting Solution, which provides step-by-step guidance for those working with QuickBooks.

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