How To? Provider, Company, Agent, Customer

Question asked by Adam Hosker 11 years ago

Their are 3/4 entities per transaction.

Provider - The company that pays commission, requests monthly fees and retains a percentage.

Company (me) - In the middle; again retains % of commission; pays monthly fees, petrol on behalf of agent then charges agent.

Agent - Gets commission (after deductions)

Client - Who pays Agent (cash) and triggers commission from Provider via buying service (who then pays commission)

Put Simply:

Provider pays commission to Company (every Friday).

Company pays % fee back to Provider.

Company retains % fee for itself.

Company pays £200 fee provider. (every month)

Company pays remaining to Agent (every Friday).

In Sums:

£1000 - Provider pays Company "commission"

£100 - Company pays Provider (10% of £1000)

£100 - Company retains its share (10% of £1000)

£200 - Company pays provider monthly fee.

£600 - Company pays Agent.

Hopefully that sounds simple; so I need running accounts for "company" which we are. As well as for each "agent" who obviously wants breakdown and "client" who needs receipt.

To add to complexity; the company pays the agents Petrol, mobile phone, car, insurance etc.. That also need deducting from "agent".

The agent may also collect some fees from the "client" - if via Card its paid to the Company bank, if cash the Agent "gets it" in their hand but owes it to company so we can take % and pay back.

Im looking at how to set this up properly from outset. Im sure i can hack it together - but - any advice more than welcome.

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2 Replies

Hi Adam,

Apologies that this wasn't looked into sooner. It does seem a rather complex transaction but I believe I have some steps that may provide a solution for this.

For the transactions between the company and provider (the initial £1000 received followed by the 10% fee at £100) these can be settled using a contra account. You can do this through Clear Books by setting up a new bank account called 'contra' account.

Head to Money > Bank accounts > Add and select Bank account. You can call it 'Contra'. This will exist as a virtual bank account whereby which the invoice and bill are settled by the contra account.

For the monthly fees of £200 you can set up a recurring payment. This following guide will outline all the steps required to do this:

http://www.clearbooks.co.uk/support/guides/uncategorised/how-to-set-up-a-recurring-payment/

If the £600 is a one off payment you can create a bill or money out transaction (Money > Manage Money > Money Out) to explain this.

Both the recurring monthly fees and £600 can be settled with the balance left in the contra account, which should be a positive amount of £900 once you have paid the commission from the initial transaction.

You can add expense claims as well to account for the expenses for the agent.

I hope this offers a reasonable solution. I would test this first to assess the feasibility but do let me know if you need any further assistance with any of the steps.

Best answer
11 years ago

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