> For the complete documentation index, see [llms.txt](https://docs.rillet.com/EjmEP4KZ9BVp9j2ho4Mh/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rillet.com/EjmEP4KZ9BVp9j2ho4Mh/close-management/capitalized-commissions/create-a-capitalized-commission.md).
# Create a Capitalized Commission
Adding a capitalized commission in **Rillet** records the commission as an asset and builds its amortization schedule in a single pass. After you choose the accounts and the term, Rillet posts the capitalization entry and every monthly amortization entry.
### Create a Commission
Follow these steps to add a commission and let Rillet post its entries:
{% hint style="warning" %} **Warning:**
Create your three commission accounts before you start. See [**How Capitalized Commissions Work**](/EjmEP4KZ9BVp9j2ho4Mh/close-management/capitalized-commissions/how-capitalized-commissions-work.md).
{% endhint %}
1. Go to **Close Management > Amortization**, select the **Commissions** tab, and click **+ Add commission**.
2. Enter the commission details:
* **Subsidiary**: Select the subsidiary the commission belongs to.
* **Name**: Enter a name for the commission.
* **Total amount**: Enter the amount you are capitalizing.
* **Currency**: Select the currency. If it differs from the subsidiary's currency, Rillet converts the amount at the exchange rate on the capitalization date.
* **Description**: Enter a description (optional).
3. **(Optional):** Link the commission to the customer and contract it was earned on:
* **Customer**: Select the customer. Once you pick one, the contract list shows only that customer's contracts.
* **Contract**: Select the contract.
4. Define the capitalization entry:
* **Capitalization date**: Enter the date the capitalization entry posts. It must fall in an open period.
* **Deferred commission account**: Select the account that holds the commission until it is amortized.
* **Commission payable account**: Select the account that the capitalization entry credits for what you owe the rep.
5. Configure the amortization:
* **Amortization start date**: Enter the first day Rillet recognizes commission expense.
* **Amortization term**: Enter a number of months, using the 12, 24, or 36 shortcuts if they fit, or switch to **End date** and pick a date.
* **Commission expense account**: Select the account that each monthly amortization entry debits.
* **Amortization method**: Choose **Straight-line (period rate)** to expense the same amount each month, or **Straight-line (daily)** to split the amount by the number of days in each month.
6. **(Optional):** Add values for any custom fields, such as **Department**.
7. Click **Create commission**.
{% hint style="info" %} **Note:**
If the amortization start date is earlier than the capitalization date, Rillet posts one catch-up entry. See the **Catch-Up for Past Start Dates** section of [**How Capitalized Commissions Work**](/EjmEP4KZ9BVp9j2ho4Mh/close-management/capitalized-commissions/how-capitalized-commissions-work.md). If you do not know the term yet, follow the steps in the next section.
{% endhint %}
Rillet posts the capitalization entry and all of the monthly amortization entries, then opens the commission's page.
### Capitalize Now and Amortize Later
Complete these steps to capitalize a commission before you know its term, for example while the contract term is still being finalized:
1. Fill in the commission details as in the previous section, then select **I don't have the schedule yet** under **Amortization start date**.
2. Click **Create commission**, which posts only the capitalization entry and leaves the commission with the status **Inactive** and no schedule.
3. Open the commission, click **Start amortization**, fill in the start date, term, method, and expense account, review the **Journal entries preview**, and click **Start amortization** again to post the schedule.
The commission status changes to **Active**.
### See Also
To learn more about capitalized commissions in **Rillet**, review these articles:
* [**How Capitalized Commissions Work**](/EjmEP4KZ9BVp9j2ho4Mh/close-management/capitalized-commissions/how-capitalized-commissions-work.md)
* [**View, Edit, and Delete a Commission**](/EjmEP4KZ9BVp9j2ho4Mh/close-management/capitalized-commissions/view-edit-and-delete-a-commission.md)
---
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