ACCOUNTING FOR AMAZON GLOBAL FULLFILMENT CENTRES

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One of my clients is recording every inventory shipment to amazon US fulfillment centre as sales as a invoice and shipping bill is generated to export goods. The problem here is a unit of good sold is recorded at 3$ to amazon and it is being sold at a fluctuating rate which is more than the above mentioned price like 8$ and my client recieves remuneration accordingly. But the sale been recorded as 3$ with amazon as buyer where as amazon is just a mediator and buyer is someone else

HOW TO RECORD THIS TRANSACTION?

Replies (1)
In my opinion, when the client ships the inventory, it is not a sale and Amazon is just an agent and your client is principal. in such case, at the time of shippment the revenue cannot be recognised as the sale has not been taken place. once it is sold to an external customer only the sale to be booked at the actual price sold.
current practice is wrong and it is understating the revenue.

Other views are welcome

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