How to handle commissions
I am a travel agency owner, all the money I receive is from vendors paying a commission that one of the travel planners earned. I want my daily bank account to reflect the money that is actually available - even if I haven't paid my travel planner. Right now I record the commission from my vendor as follows: ACCOUNT: Business Checking, DEPOSIT, CATEGORY Sales/Vendor commission, CUSTOMER name of vendor. I record money owed to my travel planner based on that commission by: ACCOUNT: Due to Agent, WITHDRAWAL, CATEGORY: refund for sales/commissions.
I followed what someone on one of the boards told me to do, but it's not balancing and I'm not sure why. The ACCOUNT: Due To Agent is listed in my liabilities & credit cards under expected payments to vendors and I do keep track of my agents as vendors. How can I get my balance to be the actual money I have MINUS commissions I will be paying out at some point?