Accounting for Amazon fees

Discussion in 'Accounts & Finance' started by Angelic, Jun 14, 2019 at 4:15 PM.

  1. Angelic

    Angelic UKBF Regular Free Member

    102 6
    I recently started selling on Amazon, but I am having problems accounting for their fees, for example: if an item is sold for £10.00 Amazon will deduct £1.20 in fees and send me £8.80, I raise an invoice to the customer for £10.00 but only receive £8.80. I can show the fees as a purchase but how can I link the £8.80 and the £1.20 so the invoice shows as fully paid.

    Thank you in anticipation.
     
    Posted: Jun 14, 2019 at 4:15 PM By: Angelic Member since: Dec 9, 2010
    #1
  2. Glenn Martin

    Glenn Martin UKBF Regular Free Member

    166 44
    are you very large scale that would need accounting software as Xero and A2X deal with all the fees automatically

    you could post the commission as a credit note to an expense code

    It really depends how you keep your books, if you eleborate your question you will get a better response.
     
    Posted: Jun 14, 2019 at 5:05 PM By: Glenn Martin Member since: Oct 1, 2015
    #2
  3. Mr D

    Mr D UKBF Legend Free Member

    14,176 1,553
    You account for the fees the same way you do your insurance, your postage etc.
    Its an expense.
    Your income is the £10 paid by the customer. Do an invoice for the £10 - or perhaps just do monthly total invoice of total sales.
     
    Posted: Jun 14, 2019 at 5:28 PM By: Mr D Member since: Feb 12, 2017
    #3
  4. Angelic

    Angelic UKBF Regular Free Member

    102 6
    Thank you for your responses Glenn Martin and Mr D, I know it is an expense and can cope with that, the problem I have is how to record the full amount of the sale, i.e. a £10.00 sale would show a shortfall of £1.20.
     
    Posted: Jun 14, 2019 at 5:59 PM By: Angelic Member since: Dec 9, 2010
    #4
  5. Mr D

    Mr D UKBF Legend Free Member

    14,176 1,553
    Record as £10.00 sale.
    Enter under expenses 'amazon fees' £1.20

    No need to record every transaction individually. If your business grows the time difference between a few thousand sale entries a year and a dozen sale entries a year is considerable.
     
    Posted: Jun 14, 2019 at 6:02 PM By: Mr D Member since: Feb 12, 2017
    #5
  6. Genius Accountancy

    Genius Accountancy UKBF Newcomer Free Member

    7 0
    are you using a accounting software to record? If you let us know what software you are using to record the amazon fee we can advice.
     
    Posted: Jun 16, 2019 at 4:19 PM By: Genius Accountancy Member since: Apr 12, 2019
    #6