I appreciate if there is anyone can help me regarding the accounting treatment and know how to use on Manager Accounting.
I am acecombat2 an agent for Estate Planning under business entity named ‘AST’ which involve with product called Will writing.
The payment structure used by AST is commission based which every Wills I’ve done is 300$ and if I have recruits doing sales under my registered name with AST, I’m also received commission for each sales of will writing services done by my recruits of 50$. In case of recruit members’ commission is 300$ for every sales they have done. The wills service provided by AST is priced 1400$.
Based on information above, If I doing the sales by myself I received 300$ for 1 sale, the rest 1100$ will be paid for the AST will writing service.
If My recruits did 1 sale, I received 50$ commission, 300$ are payable to the recruits and the rest 1050$ goes to AST will writing service.
There are 3 scenario in event of suceeded of 1 sale and the client pay in full. Recruits’ sales.
a. The client pays with cash via the recruits. (Normally I put the balance after commission in liabilities account before expense it off)
b. The client pays via bank facility of cheque/card payments to me acecombat2. (Normally I put the balance after commission in liabilities account before expense it off)
c. The client pays via bank facility of cheque/card payments to AST. (Normally I received Comission a week later)
Based on context above, How do I do the accounting treatment in manager accounting incase recruits does the sales?
Thank you in advance!