Accounting for Amazon fees

[Angelic]

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.

 

[Glenn Martin]

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.

 

[Mr D]

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.

 

[Angelic]

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.

 

[Mr D]

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.

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.

 

[Genius Accountancy]

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.

are you using a accounting software to record?

 

[MyAccountantOnline]

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.

If you are using software or an online system for your bookkeeping you should be able to record the fee as a payment.

One of us here may be able to help if you tell us what you use for bookkeeping, alternatively the software/system support should be able to help.