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Ebay managed payments bookkeeping

Hi
Would anyone be able to advise on bookkeeping for eBay Managed Payments?
I followed the instruction and I’ve created an eBay merchant account for eBay managed payments.
https://support.quickfile.co.uk/t/handling-payments-from-merchant-accounts/8865
I have a bank feed on my bank account so I moved eBay related payments to an eBay merchant account:

  • payments from eBay - as a bank transfer from the bank account to eBay managed payments
  • payments taken by eBay as a bank transfer from eBay managed payments to the bank

Now all bank feed is tagged on eBay merchant account. Then I’ve created a sales invoice for my sales and purchase invoice for my eBay fees and tagged them as paid from the eBay merchant account.
Please, can you advise if this is correct? Would this not duplicate the account balance?
Thank you for any piece of advice.

The idea is to treat eBay the same as you would any other merchant account provider. When you sell something on eBay the “payment from a customer” comes into the eBay merchant account for the full amount of the sale. The eBay fees are a purchase paid from the merchant account. And when you get a payout in your current account bank feed that would be tagged as a bank transfer from the eBay merchant account.

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Thank you for your response Ian. I get the idea but I’m not sure if I apply it correctly. I tag payouts from eBay and to eBay as transfers between bank and eBay merchant account so I can’t match them with the invoice from eBay as they are tagged already. So I mark an invoice as paid without matching bank transfer and I’m not sure if this is ok. I don’t have a direct feed from eBay on the merchant account so all payments are coming from my bank account.

Hi,
When you sell an item on ebay for lets say £10 create a money in entry (£10) in your ebay merchant account within quickfile. Tag this entry to an invoice with the customers name.
After that (or whenever ebay charges you the fees) create a out-entry in your ebay merchant account. This should show the fee ebay charges you. If ebay charges you more than one fee create anther out-entry with the relevant amount. Tag those out-entries to an purchase invoice to the supplier Ebay.
When ebay transfers the money to your current bank account (Sale minus Fee) enter a in-entry in your current bank account within quickfile over that amount (If you have a bank feed or if you upload bank statements, this will come in automatically). Tag that entry as a Bank Transfer Between Accounts and click on your ebay merchant account. This will create a out-entry in your ebay merchant account and will level out that account.

You can also enter the fee(s) as a weekly or monthly out-entry in one sum and tag it to ebay/purchase invoice.
You could do the same with the sales, daily, weekly or monthly lump sum entry but to be able to track things better I would enter each sale.

Hope this helps

For accounting purposes the money in or out of your current account (the transactions that come in on your feed) are simply bank transfers from or to the merchant account. The payment from customer and to supplier happen in the merchant account and the “date of payment” for accounting (and VAT if you’re registered) is the date the customer made their card payment to eBay, even if you don’t actually receive the payout from them until a few days later and it’s for a different amount (after the fees have been deducted).

Hi Ian and Rhc. Thank you for both responses. These are really helpful.

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