How to Book a Vendor Referral Fee in QuickBooks

Some companies will send business to another company on referral, then charge the second company a referral fee as payment for generating business income. The fee is considered an expense for the company receiving the boost in business, and as income for the company referring the customer. It is sometimes up to the referring business to send a bill in order to collect the fee. In Quickbooks, a referral fee should be added as an "Other Charge" and invoiced just like any other fee or bill.

Instructions

Create Item and Account

1. Click on the "Lists" menu button and choose "Item List."

2. Click the "Item" button and choose "New" or press "Ctrl+N."

3. Choose "Other Charge" from the "Type" drop-down menu. Type "Vendor Referral Fee" in the "Item Name and Number" field, type the fee amount in the "Amount or %" field, then click the "Account" drop-down menu and choose "Add New."

4. Choose "Income" from the "Account Type" drop-down menu, type "Referral Fee Income" in the "Account Name" field and click "Save and Close."

Invoice the Customer

1. Click the "Create Invoices" button on the Quickbooks "Start" page.

2. Choose the customer you want to charge from the "Customer:Job" drop-down menu. Click "Add New" if you have not invoiced the customer previously. Type the customer name and contact information into the form and click "Save and Close."

3. Choose "Vendor Referral Fee" from the "Item" drop-down menu and type a quantity in the "Quantity" field. Allow Quickbooks to calculate the total due.

4. Add any additional items you wish to charge the customer, then click "Save and Close."

5. Click the "File" menu button, choose "Print Forms" and then "Invoices." Place a check mark next to the invoices you would like to print, then click "OK" to print the invoices.

References

• Freelance Switch: Should You Offer Referral Fees?
• "Financial & Managerial Accounting: The Basis for Business Decisions"; Jan Williams, Sue Haka, Mark Bettner, Joseph Carcello; 2010