Setting up Xero for Commission Tracking

Many agencies still calculate commissions on messy spreadsheets. This leads to errors and angry agents. You can do it all in Xero.

Using Tracking Categories

Xero allows you to create "Tracking Categories." Use this to create a category called "Agent".
1. Add each agent's name as an option (e.g., "Sarah", "Mike").
2. When you create a Sales Invoice for a commission, tag it with "Mike".
3. When you pay for VPA marketing, tag the expense with "Mike".

The Result: Agent P&L

You can now run a "Profit and Loss" report filtered by "Agent: Mike." This instantly shows you exactly how much net revenue Mike has brought in, making commission calculations instant and accurate.