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August 23, 2023
Question

Payment for Vendor

I have a client who pays a percentage of their sales to a company. We write a check to the company monthly. What COA do I use for this payment?

1 reply

Rainflurry
Level 11
August 24, 2023

@StephWBS 

 

Since it is a legitimate business expense, the account that you post the payment to is up to you.  Create or choose an account that best describes what the payment is for - commission expense, etc.  That account is what will appear on the client's P&L so use an account that will make the most sense to them.