Hi there,
I was just wondering how to categorise amazon fees.
I think sales commission would probably be the most suitable fit however its showing as an expense and not a variable cost which surely it is?
Any guidance would be brilliant!
Hi there,
I was just wondering how to categorise amazon fees.
I think sales commission would probably be the most suitable fit however its showing as an expense and not a variable cost which surely it is?
Any guidance would be brilliant!
Personally, I would set them up as a supplier, and follow the same method as PayPal, Stripe and GoCardless fees. Take a look at this post if youāre a bit unsure on what I mean:
http://community.quickfile.co.uk/t/showing-deductions-for-paypal-fees/2990/2?u=parker1090
@Parker1090 is correct the best way is to setup a bank account (of type āMerchant Accontā) called āAmazon Marketplaceā and any sales made through Amazon pay the invoice into this account. When Amazon remit the funds to you (usually minus their fee) you treat this as a transfer from the Amazon Merchant account to your current account. Any balance left over you can enter as a money out entry and tag is a payment to a supplier, again named āAmazon Marketplaceā.
Hi @Glenn
So, in the above situation, when we have an invoice from Amazon, we tag it against the supplier Amazon Marketplace with the description ābank chargesā (like we do with PayPal)?
Many thanks
Jose
Yes, all these scenarios in accounting where youāre paid from a middle entity NET of fees is handled the same way. So in that respect Amazon Marketplace would work much like PayPal.
Thanks Glenn!
Much appreciated
Jose
OK, I have a question about incoming Amazon payments.
Unlike PayPal, incoming payments from Amazon go straight into the bank account, so we canāt log that as a transfer between accounts (merchant to bank).
So if Amazon pay Ā£10 into the bank, and the Amazon fees are Ā£2, how would we log that in QuickFile?
Create a money in entry in the merchant acc: Ā£12 gross
Create a money out entry in the merchant acc: Ā£2 fees to Amazon
Any input is welcome
Cheers
Jose
Youāre still adjusting down the balance of the merchant account, so in this case you would find the Ā£10 incoming payment on your current account and tag it as a transfer from the Amazon merchant account.
If you donāt do this your Amazon account will accrue a larger and larger balance over time.
Thank you Glenn,
I finally get it.
I assume that I tag the incoming Ā£12 in the merchant account as āsales incomeā, because Amazon donāt ask for an invoice, so thereās no invoice to pay down with the incoming Ā£.
Many thanks Glenn - I really appreciate it.
Best Regards
Jose
You create an invoice in QuickFile anyway, even if you donāt actually send it to anyone. Iād use a dummy client named something like āAmazon Salesā. I have to do a similar thing running my physical retail shop, creating one āinvoiceā in QuickFile for the total amount of each dayās till sales.
Thanks Ian,
Much appreciated! I think thatās Amazon 101 covered in this thread
This thread should help a few people in the future - thank you all - itās got me back on track.
Al the best
Jose