Hello,
I would like to know if someone could explain to me the diference(in simple words please), between commission received and sales in Manager.io.
Sometime I receive commissions from music sold by aggregators, I do not know when they sell the songs and pay me 3 months later at whatever dates they like, should this go into commission received or sales?
Thank you.
Lorraine
The names of accounts are arbitrary. They can be changed at any time. Regardless of what you name the account where you post the receipt, however, it must be an income account. You can use a default income account or create your own.
In your situation, you are obviously not going to send the aggregator a sales invoice. So you can just enter the receipt, posting it to whatever you decide to name that income account.
In typical usage, the term commission refers to a fee, usually a percentage but sometimes a fixed amount, paid to someone who sells something for another person or company. So if a sales representative for a printer sells printed sheet music to a retail shop, the printer might pay a commission to the sales representative. Or the printer might ship sheet music directly to the shop and pay the shop owner a commission whenever a sale is made.
Your arrangement is more commonly referred to as a royalty. The creator of intellectual property (music, art, literature) receives a fee from a seller whenever the property is sold. Authors and musicians usually receive royalties.
Depending on what other sources of income your business has, I would rename one of the default income accounts that were created when you first added your business as Music royalties. Or, if the default accounts are already in use for other things, add a new account. But there is no accounting reason that all your sales from any source cannot go into the same account. It just depends how much visibility you want into where your money comes from.
Well if I were you I create a placeholder account of âRoyaltiesâ where the sub-accounts included the Music, Arts, Film, Online Viewer Subscription or any Recognisable Category, Separate from your business main business activity.
âCommission receivedâ is like side income from other than registered business main activity. Where âSalesâ Is your Main Business Activity Income registered in registrar of business (depending national department or component in my country called âCompany Commissioner of Malaysia?â) for legal purpose to get business license.
Not to an insurance broker, commissionâs is mainly their only income.
yup, if read together with the meaning of Sales as I describe, is interchangeable based on the nature of the business. I set Registrar of Business as benchmark since the information is consistent.