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Context:

Currently we can create sales partner along with the commission rate.

When the sales partner is selected in the 'Sales Invoice' the commission is calculated.

Problem:

However, the accounting entry for the commission needs to be done manually via a Journal Entry. As creating journal entries is a tedious task it deferred until the end of the month/quarter and is created at an aggregate level. This results in

1. Financial Statements being inaccurate until journal entries are created. (P&L does not show the commission expense and Balance Sheet does not show the commission payable.)
2. Possibility of errors as the journal entries are created manually.

Proposed Solution:

This can be automated by debiting the sales commission expense account and crediting sales commission payable liability account on submission of sales invoice.

1. Checkbox 'Enable Commission Accounting for Sales Partner' in 'Selling Settings'
2. 'Default Sales Commission Payable Account' and 'Default Sales Commission Expense Account' fields in 'Accounts Settings' in 'Company' DocType.
3. When sales invoice with a sales partner is submitted, debit the expense account and credit liability account configured in company.
4. Add 'Sales Partner' as a 'Party Type'
5. Show the payable amount in 'Accounts Payable' report.