How to Book Keep for Affiliate Commissions

[Aliron]

Hi Everyone,

My question is how do I do the book keeping for affiliate commissions paid directly to our bank account without an invoice?
1. Do I need an invoice?
2. If not, how can I add the commissions it to the accounts?

Many thanks!

A

 

[Trader82]

Hi Alidem,

Are you using any accounting software for your bookkeeping?

 

[Aliron]

Hi There!
Yes we use an online accounting platform.

 

[David Griffiths]

The terminology will vary according to the platform and the process will depend on if you import bank statements or not. On the assumption that you do, you can allocate the commission directly to a sales account without the need to create an invoice. In Xero that would be a Receive Money transaction - if you use something different the name might be different

If you are VAT registered, then you would need to account for VAT if the money comes from a UK company

 

[Trader82]

Allocate the commission/payment to sales or the account you have set up to record this type of transaction, using the BACS Ref for future traceability and bank reconciliation purposes.

Hope this helps.

 

[Trader82]

No need for invoice, the bank statement will have this transaction listed, you just need to record it in your accounts and allocate the BACs reference to that journal entry.

 

[MyAccountantOnline]

Hi There!
Yes we use an online accounting platform.

Most systems will enable you to -

1. Create a sales invoice and allocate cash received to that invoice, or
2. Show money received going directly to sales without entering an invoice

Just use the second option if you receive sales without raising an invoice

 

[MyAccountantOnline]

Hi There!
Yes we use an online accounting platform.

If you tell us the actual system you use its fairly likely one of us here will use it, or have come across it, and can be specific in exactly what you need to do.