entering commission deductions

[Colin Law]

On 1 December 2015 at 07:19, Daisy Blue <3daisy55 at gmail.com> wrote:
> hello all
>
> I receive an invoice each month, detailing the amounts collected on my
> behalf, and the commission deducted. The balance is then paid into my bank
> account.
>
> For VAT reasons, I cannot just enter the nett amount into the ledger.
>
> How can I deal with the transaction? The amounts collected to into
> Income:Sales, and the nett amount into the current account.
>
> Would it be best to set up an account (in the agency's name) as an asset
> within the ledger, then enter the transactions thus:
>
> Income: sales £7500.00
> Commission $1500.00     Current account £6000.00

Yes, except I believe the commission should be an expense account not an asset.

Colin