Account coding for commission

This page shows how to do account coding for commission in Opter. The new account is taken primarily from the Account field in Resource Pricing Settings and secondarily from the Account for commission field in VAT rates. Hereinafter referred to as “New Account”. For more information about suppliers and commission, see Åkare.

Normal account coding

Commission is booked as sales to a customer (different account)

When commission is booked as if it were a sale to a customer, this means that the sale is moved from one sales account to another, without VAT being affected.

The existing sales account is credited (reduced) by the commission amount.
“New account” (sale) is debited (increased) by the commission amount.
VAT is not affected.

Commission is booked as sales to a supplier

The full price paid by the customer is booked as a cost. The commission is then added to the price. It can be considered to be like having a gross turnover consisting of a price and a commission and a net turnover consisting of a price. This approach is suitable in cases where a supplier wants to see the price as turnover on the credit and treat the commission as an cost. The supplier may wish to do this because VAT on income and costs has to be reported separately and they may not be offset against each other.

This leads to gross turnover (customer + commission) and net turnover (customer). This arrangement is used if the supplier wants to have the full customer price as turnover on its credit while the commission is counted as a cost by the supplier. The reason for this is that VAT on income and costs has to be reported separately and they may not be offset against each other (barter trade).

The existing cost account is debited (increased) by the commission amount (to match the customer price).
“New account” (sale) is credited (increased) by the commission amount.
Input VAT is charged (added) to match the increased sales.

The commission is booked as a cost to the supplier

Increase the cost to match the customer price and then offset the increased cost against another cost account.

The existing cost is debited (increased) by the commission amount (to match the customer price).
“New account” (cost) is credited (increased) by the commission amount.
VAT is not affected.