Hi. I’d appreciate some input as I’m unclear on an issue regarding refunds and my googling has been inconclusive.
The crux of the issue is that I don’t know if refunded sales should be included in gross turnover or not.
Now the exact thing I’m trying to do is to correctly make a journal entry from the new ebay earnings report.
I am using the merchant bank/clearing method that is described in the Quickfile knowledge base.
There are 4 figures on the ebay report I need to enter into my journal entry,
- Gross turnover which is tagged to 4001 ‘ebay sales’
- Fees which is tagged to 6101 ‘ebay fees’.
- Refunds?
- Earnings, I assume this will be the balance that should be tagged to the ebay merchant bank account I’ve created.
It’s refunds I’m not sure about, I’ve been through the report and the Gross turnover does not reflect refunds.
My initial though would be to simply debit 4001 ebay sales or create a new account code under sales, but if refunds should not be deducted from there I’m not sure where to put them.
Could someone please advise, I’ve lost the will to live reading arguments over how this should be done.
Thanks in advance for any input.