Deduct receivable by commission paid

Hey all, I recently started using erpnext. its a great tool, I am facing issue setting things up as follows.

I sell with many online marketplaces and all the transactions are Invoiced under my company name. the issue is that the payments are captured by the marketplace and paid after deducting the commission I am suppose to pay. As far as I could understand erpnext handles commission in its actual means. But is there any way I can deduct the commission from accounts receivable and still match the invoice.

thanks,
Vibha

Why do not enter marketplace commission in payment entry?

For example:
Accounts Receivable - 100 (Cr)
Bank - 90 (Dr)
Commission to Marketplace - 10 (Dr)

Here, Commission to Marketplace is an expense account.

Hi @nabinhait thank you for the prompt reply. I understand that by vouchers you can match the bank entry. But the receivable account will always show false out standings. Here is an example, this is just so that I am not expecting something wrong out of misconception,

Customer A buys 100bucks worth products from maker place A that has 5% commission. Now I have created a receivable account for A. Now if you can see as owner I will have false sense of outstanding as 100rs all the time. Where as its 95. With high commissions this difference is really high.

Thanks again for the guidance.

Appreciate it -Vibha

In that case, I think you should book 95 only in the Sales Invoice.

Surely this would under report Turnover. The commission is an expense and should be treated like that in the accounts. How can you send a Sales Invoice out to a customer showing the after commission amount as it would not make any sense to them.

How do I add Payment entry for an Expense account? I don’t see the option to do so…

You can create Payment Entry against Expense Claim document.