Logging Amazon Sales/Purchases?

Accounting
1

Hello,

Simple question please…

eBay feed comes through and splits sales and purchases (eBay fee’s) automatically. Do I need to replicate this manually with Amazon sales or can I just create a quick invoice in tagging when the payment from Amazon arrives in my bank?
This final figure which enters the bank includes the fee’s that Amazon charged and would not appear in the accounts unless I do all this manually.

In a long way round, do I need to log Amazon fee’s or can I just show the final figure that I was paid by Amazon?

Thanks.

2

You can do one bulk entry as long you have proper backup for the figures.

3

Thanks there. I’ll do just that then.

4

I know this thread is many years old now, but I’m not sure if the above advice is best practice? I’ll add some consideration points for anyone else who is exploring integration with Amazon.

Firstly, are you VAT registered?

If you’re VAT Registered as most companies now need to be on Amazon, different products fall under different VAT Rates, so listing as one payment surely wouldn’t be correct?

The payments from Amazon also include disbursements for warehouse damaged items etc. and would also be categorised differently than ‘standard sale’ / income?

I’m not an accountant but surely from a logical point of view listing as one transaction wouldn’t be correct, especially when it comes to running VAT returns etc.

Would be good to hear others thoughts of course!

5

No its not best practise.

Your turnover should represent the total sales cost, with amazon fees being an expense.

You shouldn’t skip all that and use the net figure as the turnover because this can lead to all sorts of issues. One being whether you should register for vat.

Understating turnover in this mannor will lead to serious issues down the line.

Recreating the transaction is best policy with an invoice for the total sale and fees as a separate expense. You can do this by creating another bank account. This would leave a balance on that account which would be the amount amazon pays you and then it’s a simple case of tagging it as a transfer to your bank account matching it with the payment received.