Accounting Entries for Other Income to the Brokerage
Record Brokerage Other Income Accounting Entries
By default, Loft generates a single bill, as most users do not transfer funds between bank accounts.
If you use a commission trust account and prefer to maintain a two-entry system to automate recording the income transfer, you can enable this option in Settings under the Brokerage menu.
Bill Awaiting Payment: this would allow you to issue a check or payment if the funds were being moved to another bank account. This transaction clears the commission payable liability for the company that would have been set up on the deposit of the funds.
Receive Money Transaction: to record the 'Receive Money' transaction into the bank account, in order to reconcile the deposit against a transaction. This entry also records the credit to the revenue account you mapped to 'Other Income' in Loft.
Single Post System – No Fund Transfer Required
Used when no funds need to be transferred between accounts.
A single bill is created under the brokerage name and is not payable. It records a debit to the commission liability and a credit to the revenue account.
This ensures the correct accounting entries are posted and automatically moves the bill from Awaiting Payment to Paid, with no additional action required.
*** Please note, if your deposit is received separately from the commission deposit, just go ahead and enter the deposit on the deal "Add Deposit" menu item.
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