Account Receivables And Commission

I give a product of worth $100 to an agent A. He charges me $10 as service charges and deposit $90 in my bank account. I want to enter it as

Bank a/c 90 Dr.
Commission fee 10 Dr.
Agent A 100 Cr.

The issue is how can I use to do a general entry?
Help pls

You need to explain your situation in more detail. Why are you giving the product to A? Is A going to sell it for you, or on his own account? Why is A charging you $10? Why is A only paying you $90 for a product with $100?

Your subject line suggests you may be selling on credit. Is that true? Or is this a cash (non-credit) sale?

A is an agent who takes the products from me on credit.

Please answer the rest of the questions.

Hi @moeen

My understanding is you are consigning inventory to an agent who will sell it for you, for a commission.

If that is the case, your example journal entry is already close. It would be;
Dr. Cash (Bank Account) ----90
Dr. Commission expense ----10
Cr. Sales -----------------------------100

(In a consignment, inventory ownership does not transfer to the agent, so the credit should not transfer anything to the agent).

To remove the product from your inventory you would then record;
Dr. Cost of Sales expense -----the product’s cost
Cr. the Product ---------------------------------------------at cost

However, you can only do this as a general journal entry if you have setup all your accounts as manual accounts and are not using any of Manager’s built in functions (such as “Bank Accounts”).

To effect this transaction using Manager’s functions, you would setup the product in the Inventory tab, then create a Sales Invoice for the product, invoicing the agent for the full 100 (strictly, you should only invoice the agent after they notify you they have indeed sold the product).

When the agent pays you the cash of 90, you would record the receipt in the Receipts and Payments tab. In the “New Receipt” entry screen, under “Account,” the first line should be the invoice (from prior paragraph), at the full 100; then add a second line for the Commission Expense account and enter a negative 10. The receipt entry should total to 90 and record 90 in your bank account.

Alternatively, you could also issue the Sales Invoice with the agent’s commission expense included by using the discount option, but there are others more knowledgeable about that area of the program than I.

Manager will take care of the journal entries behind the scenes.

you can do this from Sales Invoice and Receipt
Sales Invoice Agent A 100 Dr
Agent A 100 Cr
Commission 10 Dr (you can put -10 at receipt)
then Bank will be 90 Dr

Alternately, the Sales Invoice could contain a term - Ownership of the product does not transfer until payment has been received.

However @moeen, if you don’t want to do a sales invoice then do a cash sale:
Dr. Cash (Bank Account) ----90
Dr. Commission expense ----10
Cr. Inventory Item A ----50
Cr. Inventory Item B ----50

Then the removal from inventory to cost of sales will happen automatically