We are dealing in Computer components & doing online selling via Ebay/Amazon/Snapdeal etc. In this sale there are 3 parties involved.
1st Step : The customer places order to Ebay & makes payment to Ebay. 2nd Step : We Invoice to customer & send the goods at his place. 3rd Step : Ebay sends us payment after deducting commission & other fees.
We are using Tally ERP 9 for our accounting work. Currently we are creating new customer Ledger & Debiting his Account while making Invoice. When receiving payment from ebay we directly credit customer Account & difference in payment is debited to Ebay Service charges.
Now since all the sales are to Retail customers, the number of Ledgers in tally has increased very much & it is becoming difficult to manage. Hence is it OK to modify the accounting entries as follows :
1) Raise bill in the name of Ebay & mention customer name/address as Consignee.
2) At the time of payment, Credit the payment to Ebay .
This method of accounting also seems logical as the order is given by ebay to deliver the goods to particular customer & payment is also done by ebay. Hence we should show sales made to ebay & not to customer.
Please give your expert advice .