October 30, 2016 admin

Commissions & Incentives—Other—Parts

Expenses

COMMISSIONS & INCENTIVES—OTHER—PARTS EXPENSE ACCOUNT
7620

ACCOUNT EXPLANATION
Commissions and incentives paid or accrued to parts managers and employees on the sale of parts and accessories. Includes incentives based on the performance of the parts department.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Commissions earned by parts counter salespeople PR
    Commissions & Incentives—Parts 7620
      Accrued Payroll 2410
             
  Incentive pay earned by parts manager on parts department performance PR
    Commissions & Incentives—Parts 7620
      Accrued Payroll 2410
COMMENTS
  • Bonuses of parts managers or employees based on total dealership profit should be charged to Account 9550, Employee Bonuses.
  • Commissions, incentives, prizes, etc., paid to dealership employees are subject to withholding and should be recorded through the Payroll Journal. Tax counsel should be consulted as necessary.