Accounting entries for online sales made on ebay/amazon etc

Dear Ravi,

I believe u cannot do so because Ebay is the consignee and not the customer...Ebay acts as ur agent and charges commission.

Hi Sumit,

But as per definition  consingee is one who receives the goods ( the customer).  I am receiving order & payment from ebay.  So ideally bill should be generated in the name of ebay.

Hello Mr. Ravi,

Customer can never be your consignee.

In Tally there are two options while preparing Invoice.  1) Buyer Name & Address 2) Consignee/Delivery Name & Address.   The ledger is created in the name of Buyer & his account is debited, wheres Consinee Name & address is only for record .

I want to Enter Ebay as Buyer Name,  & End Users Name as Consignee Name,

Is this correct Entry.

Ravi

Dear Ravi,

No the entry is not correct as u r not selling ur goods to ebay, u are selling it to end customer...Regarding payment u receive, it is paid by customer to ebay and ebay after deducting commission pays to u...So indirectly (or thru ebay) customer purchases from u and also makes payment to u thru ebay...Ebay in the whole transaction acts just as ur agent...

I beleive u have to open customer account each time u make a sale

Dear Ravi

you can follow this practice which you have mentioned above. The customers may be thousand and in lacs, but you only know the Ebay or snapdeal. They are giving you a business hub where they are promoting your products, and also customers have a  faith with the brand- Ebay or snapdeal.

so you must invoice to Ebay as billing party and mention the complete customer detail in Consignee/Shipping party column, as you are receiving all the payments from Ebay after deduction of commission. so this is correct method. 

Dear Sunil,

If I am selling my products through an agent, I can invoice all the sales in the name of the aget?

The differance amout what we are saying Commission / Brokerage  to ebay.. TDS will attract.. here we don't have chance .. total money controll having ebay..

So.. i agree with Sunil   

Dear Ravikiran,

What's the connection of entry with control of money??

Dear All,

Please tell me all e-commerce sites likes e-bay, flipkart, snapdear, pay-tm etc. our goods sale and collect money from customer and pay us after deduction commission, courier charges, packing etc, and some orders returns. step 1. e-bay or snapdear etc. deducted commission and bal amt. pay us. stem 2. tds deduction liabiality is my or not.

plz reply 

thanks

Bijender

Hi Dear Ravi,

I'm facing the same issue which currently you are. In my opinion, you should book the sales directly in the name of agent viz. ebay, snapdeal etc. because ultimately they give you the payment and not the ultimate consumer. If you account for each and every consumer, you'll end up in mis-management as to from whom payments are pending and you might not even recognize the names of numerous customers also. So it's better if you book in the name of 3rd party.

Now as regards the issue of TDS liabitlity as raised by Mr. Mallela, I would like to inform you that if a trader is governed by provisions of Sec 44 AD of Income Tax Act, 1961 (in layman terms, it means the trader pays tax on the profit calculated @ 8% of the gross turnover upto Rs. 100 lacs), then the TDS liability will not be attracted regardless of whether he books commission or not. But if his books of accounts are audited u/s 44AB, then he will be liable to TDS if and only if he has booked commission in his books of accounts.

FOLLOWING ENTRIES WOULD BE MADE:

CUSTOMER                       DR

        SALES                              CR

EBAY                                 DR

       CUSTOMER                       CR

COMMISION EXP              DR

BANK                                DR

          EBAY                               CR

THIS WAY YOU WILL BE ABLE TO TRACE THE NO. OF CUSTOMER APPROACH YOU THROUGH AND EBAY AND TRACK RECORD FROM EBAY RECEIVABLE AND COMMISSION PAID.

Your answer is completely wrong.