I’m just trying to set up my Quickfile accounts and I’m doubting myself
I run a predominantly Ecommerce business run on three marketplaces, Amazon, Ebay & OnBuy. Ebay & OnBuy both pay via Paypal
I have so far been handling the accounting side on spreadsheets but now fall under MTD.
I have lots of small sales per day so I have been entering these as Cash Register Takings (3 entries per day, one for each marketplace)
I have set up merchant accounts for Amazon and Paypal.
I treat all marketplace fees as a monthly purchase – all provide invoices so this seems to be acceptable.
Assuming the above is a correct way of handling this, I have two queries:
Amazon pay every two weeks, after deducting their costs – how do I handle this? I assume this will also apply to Paypal, which I also use for some purchases so the totals are never going to match sales.
How do I show refunds i.e when a customer says something hasn’t arrived or has returned something? I currently deduct these from sales before entering on the return but I can’t see how to show this on Quickfile. As I do not enter each transaction I cannot put it against a customer, so I’m somewhat lost.
Amazon pay every two weeks, after deducting their costs – how do I handle this? I assume this will also apply to Paypal, which I also use for some purchases so the totals are never going to match sales.
In your Amazon and Paypal account within quickfile you have to enter the full sales and purchases amount you get from your customers or pay for purchases. If you use the paypal feed from quickfile this will happen automatically. Also the fee you pay to paypal, this will automatically show up up on your paypal account on the next day. If you don’t use the auto feed then you have to enter all these transactions manual. But as I said, enter the whole amount (your normal sale amount) you get from your customers. And you just enter the paypal or amazon fee(s) as ‘out’ like other purchases.
Do you create a daily cash sales invoice? If so then go to that invoice (from the day where you did the sale which requires a refund now) and create a credit note against this invoice. I am not an accountant but I think when you are VAT registered you need a kind of invoice for each sale as a proof, just in case the tax man ask for this.
Sorry, I should have said, we use a Backoffice stock management system and this generates invoices as we need to upload these on a daily basis to Amazon. We download our sales each day from the backoffice system to get our daily sales figures which we enter into Quickfile
Right, I’ve had a look and can see how to create credit notes, does it matter if the credit note is raised against today’s sales or does it need to be raised against the actual sales date? The refunds may happen up to 3 month’s after the sale so it may cross over VAT periods
Yes, sometimes it cross over VAT periods but a credit note should then reduce your next VAT return. But as I said before, you should may ask an accountant for that. But I know you should raise a credit note against a the sales invoice in which the sale is recorded.
It’s perfectly fine and correct for a credit note to sometimes span other vat periods. If I bought something at the start of Jan and returned it 28 days later and received a refund as an example. The credit note would be dated 28 days after purchase. Not on the day I paid for it. So therefore its possible that the original sale went in to one vat period and the credit would be in another.