Hello,

I ran into the same problem and was looking for a solution before reinventing the wheel but I couldn’t find one so here is how I proceeded.

1. Optional: Open your Profit & Loss report and take note of the amount you have under your total payroll account. This is for verification purpose.
2. You can create an account to record your commission separately from your other payroll items, if it’s not done automatically when you do payroll.
3. Find the account that your commission will be or is recorded in when you do your payroll run. (mine is: Salary)
4. Create a Journal Entry (my example will use a commission of $10,000 to split over 3 jobs)
   1. Example if you pay the commission in the same period as the jobs are invoiced or if you want to keep it in the same period as the commission was actually paid.

Account                               DT                  CT                           Description                                        Name   

Salary                                                     $10,000                To allocate to Job #                                        

Commissions                     $5,000                                     Comm. Allocated to job #             Select the Job

Commissions                     $2,000                                     Comm. Allocated to job #             Select the Job

Commissions                     $3,000                                     Comm. Allocated to job #             Select the Job

1. Example if you pay the commission in a different period as the jobs were invoiced and you want to allocate the commission in that or those periods. For this example, you will need to create a payroll clearing account under your liabilities in your Balance Sheet and make at least 2 journal entries.

Date: same as the paycheck

Account                               DT                  CT                           Description                                                       Name   

Salary                                                         $10,000               To allocate to Job # and proper period                         

Payroll Clearing                 $10,000                                      To allocate to Job # and proper period   

Date: same as the invoice (If you have multiple months, make this JE for each different month)

 Account                              DT             CT                           Description                                                       Name   

Payroll Clearing                                   $10,000                To allocate to Job # and proper period   

Commissions                     $5,000                                     Comm. Allocated to job #                    Select the Job

Commissions                     $2,000                                     Comm. Allocated to job #                    Select the Job

Commissions                     $3,000                                     Comm. Allocated to job #                    Select the Job

1. Review your accounts so the total noted in step 1. is the same. If you split your salary and commission with the above JE the sum of both should still be the same. If you used the payroll clearing account, that account should be at $0 in the month the commission was paid.