Incomes and Expenses by Sales Rep

Software: Intuit #QuickBooks Desktop #accounting software

You can tag a Sales Rep to a Sales Invoice or a Sales Receipt transaction. The double entry behind the Sales Invoice transaction debits sales revenue and credit accounts receivable account, or credit a bank account if you are using a Sales Receipt instead. If an inventory item sold, the sales invoice transaction besides debiting accounts receivable and credit the revenue account, it debits cost of goods sold and credit inventory assets at the same time. The sales revenue and cost of goods sold of each sale rep, which shows in the Profit & Loss by Rep report, is useful if you are looking for the gross profit of each sales rep.

However, if tracking of expenses, such as travel, salary and mobile phone, of each sale person is needed, then “Class” feature is more suitable than the “Sales Rep”. Unlike “Sales Rep”, which limited to sales transactions, a “Class” can tag in almost any transactions including entering Bills, Write Cheque, Journal, etc.

You create sales person as a class and use it in the transaction such as Sales Invoice or Enter Bill. The revenue and expense account, which tagged with a class, will print in the Profit & Loss by Class report.

Sales Rep or Class

If you are not using the Sales Rep in payroll transaction or require to print a sales report by rep, then you may consider using “Class” feature.

You should discuss with your accountant or a QuickBooks consultant in your area to find a solution which is most suitable for your business.