Hi,
Amazon transfers the weekly amount of our sales after deducting their all fees. Amazon issues invoices for the services they provide, at the end of month. So, Amazon acts like a bank for me. So, I made following accounts.
So, I made three accounts Amazon customer, Amazon clearing account (bank), Amazon vendor.
When I make sales, I tansfer the sales amount to our amazon account:
Entry: Amazon clearing account: Credit
When Amazon tranfers money to my real bank account after deducting their fees on weekly basis
Entry: Amazon clearing account: Debit
Real bank account: Credit
When Amazon issue invoices for their services like shipping, etc. at end of month
Entry: Amazon clearing account: Debit
Expenses: Credit
So, is this methodology correct for online sellers?
If I have messed up somewhere feel free to ask. It will be a great help if you can verify this method and help me.
Regards,
Avneesh
CAclubindia
