Hi I have a client who has some balance on his account. Recently he give me good referral and I decide pay him for his favor. How I should record this referral fee against balance that he own me? QB2005Pro US version.
Alexander
referral fee to the client
Nov 17, 2005
3 Replies
Credit Note.
record this
Thanks, I was able to figure it out. Do I need to create item "referral fee" and assign it to the COGS account "Referral fee"? Basically, what type of the account should I use to put those referral fees on?
Alexander
There are other possible ways, but yes - you would need an Item for the credit note.
A referral fee is usually an expense similar to commissions, not COGS. If you think your business is unusual, or other special circumstances exist, consult your accountant.
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