How to bookkeep for affiliate commissions

Accounting
1

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

2

Hi @alid

There’s one of two ways you could do this.

Method 1
If you like a record of each payment (i.e. who it’s from, what it’s for etc), you could create a new client called ‘Affiliate Income’ (or similar), and raise a new invoice for payment, and tag it as normal.

The invoice itself can be assigned to 4902 Commissions Received.

Method 2
You could tag it straight to the nominal:

Hope that helps!