Recording a Commission Check as a Miscellaneous Cash Receipt

Modified on Fri, 15 May 2020 at 03:32 PM

Sometimes you will receive money from a source other than your Clients such as a commission or a finder's fee. Money that comes into your business and is not payment for services or merchandise can be recorded as a Miscellaneous Cash Receipt. 


ProCloud 


To enter a miscellaneous cash receipt in ProCloud:

  1. Enter the Accounting tab
  2. Click the Cash Receipts button
  3. Select the Add Misc. button in the lower left corner of the window
  4. Enter the information about the money you have received 

Cloud


To enter a miscellaneous cash receipt in Cloud:

  1. Enter Documents and Accounting window
  2. Select the Journal Entries and Miscellaneous Cash Receipts tab
  3. Click the Cash Receipts button
  4. Enter the information about the money you have received 


Receipt Information


The Date will default to the current system date, but can be changed as necessary. The Date entered determines on which date the Miscellaneous Cash Receipt will appear on the Checkbook. The Check Number (Check No.) allows you to enter the number of the Check, if one is available. You can also record a transfer number, authorization number, etc. in lieu of a check number depending on the mode of payment. Select the appropriate Payment Type which will automatically default into the Deposit Slip Number (Deposit Slip No.). Change the Deposit Slip Number if necessary. 


Payment Distribution


You can enter the Name of the person or organization from which the company is receiving the funds. Enter the amount that you are receiving in the Amount field.  An optional Transaction Description (Trans. Desc.) regarding the cash receipt can be recorded for future reference. Finally, enter or select a General Ledger Account Number in the Offset Account field. This Account Number represents the classification of the funds you are receiving (why you have received the funds) and will often be a Revenue Account such as a Commission Revenue Account.


Click OK to save the Miscellaneous Cash Receipt. 


Accounting


Assuming the Amount is a positive figure, the Offset Account determines which General Ledger Account will be credited while the Checking Account of the selected Payment Type will be debited. In the most common scenario, you will be increasing the Commission Revenue Account and simultaneously increasing your selected Cash/Checking Asset Account.