After I have recorded an invoice, how do I account for a referral fee that will be paid when the invoice is paid?

7 replies
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I am Of Counsel to a law firm. For certain matters, we split the fee. When I book the invoice in QuickBooks, I want to also book the referral fee expense that will be paid when the invoice is paid.

QuickBooks Online

john-peroAnswer

Level 12

Customer (Client) Credit memo posting to an expense account you call Referral Fee. When you receive the payment against the invoice you also apply the credit. If you choose, in preferences, to automatically apply credits this will be done for you. I advise to not auto-apply in case you want to direct it to something else.

john-peroAnswer

Level 12

Customer (Client) Credit memo posting to an expense account you call Referral Fee. When you receive the payment against the invoice you also apply the credit. If you choose, in preferences, to automatically apply credits this will be done for you. I advise to not auto-apply in case you want to direct it to something else.

A

Andres11

Tried creating a credit memo but you cannot credit the memo using expense accounts. What I did was issue the invoice and create a line item below named Referral Fee (expense account) that shows the amount deducting from the initial invoice.

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