Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Amazon clients??

monkeypuzzle47monkeypuzzle47 Feels At HomeMAAT, AAT Licensed Accountant Posts: 134
Does anyone have any clients who sell through Amazon??

I am doing accounts for a new client and Im having an absolute mental block!! forgive me its friday. yay! :-)

Anyway the client is selling books. On the clients Amazon statement it reads as follows:

Product Charges Total £2041.76 (This is sales I believe)
Amazon fees Total (£512.93) cr (commission??)
Other total £1225.63 (client has mentioned they pay him £2 for postage and list price)
Deposit Total £2754.46 (The amount client ends up with)

How do I treat this in the accounts.

I have posted 2041.76 to sales and 512.93cr to commissions (costs of sales). Not sure how to treat the postage/list price paid to the client.

He also claims postage again as expenses.

Aaaah.

Thanking you in advance to whomever can reply.

Comments

  • PoodlePoodle Experienced Mentor Registered Posts: 711
    Hi

    I think that you have

    Book Sales £2041.73
    plus Postage receipts £1225.63
    Total sales £3267.36
    Less Amazon fees £512.93
    Into bank £2754.46


    In books Cr sales £3267.36 Dr fees £512.93 dr bank £2754.46

    You could split the sales into two income account if your clients wants to ensure postage in covers postage out, ie the expense.

    With Amazon when you list a book amazon automatically calculates a postage charge to add to the cost of the book listed, therefore your client will have two postages one when the book is purchased on Amazon (income)and one when your client posts the book out (expense)

    Poodle
  • monkeypuzzle47monkeypuzzle47 Feels At Home MAAT, AAT Licensed Accountant Posts: 134
    Thank you Poodle.

    Some further questions if you dont mind?
    1.
    re: other total ( which you say is postage receipts). Is that figure all postage receipt?? I have £4900 on the amazon statement for 1 yr. My client has said he gets 2.26 per book and he has sold 1989 books which equates to 4495 so I should put this figure through expenses.
    I am thinking that the expense part should be the same as the income part? What do you think. Hope Im making sense?

    2.
    Is the postage expenses part to be posted to cost of sales. I would assume so but Im having a real dumb day. :001_rolleyes:

    Hope you enjoy the weekend poodle and sorry to pester you again.

    JEN
  • sheelaghsheelagh Well-Known Registered Posts: 133
    Amazon sales

    The P&P received by your client will be posted as income, either in the same nominal code as the book sales, or on a separate code. I would agree with Jen and use a separate code. It's useful to compare P&P income with P&P costs, and also to compare product sales with P&P sales.
    Your client should have separate evidence of P&P costs. This will be from the outward carrier - eg Parcel force (Royal mail) or his fulfillment warehouse, depending on how he arranges despatch. You should record these costs as carriage out. Don't record carriage out costs from the information provided on the Amazon statement.


    I have found that internet payment channel providers are particularly poor when it comes to providing good quality information for bookkeeping. OR, is it that the sellers don't know how to access the required information?
    It ought to be clear what "other" means. We have also accepted that it probably means P&P, but it might also include other items, which could help to explain why your postage costs don't reconcile.
    I have found some are even worse that Amazon - one provider appears to provide only a "net" income figure, this being sales, plus P&P,plus VAT, less fees, but with no analysis available.
    Has anyone else had this problem?
Sign In or Register to comment.