MARKETPLACE DIRECT, E-bay sales

[Torgy]

how are you reconciliating your marketplace direct sales on e-Bay? Our accounting dept is having difficulty in reconciling our parts invoices, to the e-bay payments. We sell the part at the price it sold for on e-Bay on the part invoice, but when they try to match the transactions, they don't know what to do because of the fees from e-bay associated with the transaction. I told them that I feel that it should go to e-com. advertising, but they want to take it out of the profit of the sale. If that is the way that they want to treat it, should I deduct the transaction fees on the invoice?

[Tbizkit]

When selling on ebay a % of the sale goes back to ebay.

for example the part is sold for $100.00 ebay takes 5% of the sale. So your part that you sold for $100.00 technically sold for $95.00. That $5.00 comes directly from the profit of the part.

Ex- Cost of part $50.00|
Sold $100.00
5% fee
Total money coming back - $95.00
total profit - $45.00

This expense comes from the parts department and not advertising or e-com.

Well, no because you can't just discount the part. A $ value has to go back to the AR/AP to eBay for the transaction.

[AlanHomes]

What you really mean is e-con

[smoyer]

we create an invoice to ourselves billed out at msrp less the 7% , add the tax and close it to credit card , I send the invoice to the office they put it on our aftermarket warranty schedule and when they get the credit off of bars account it offsets the amount on the schedule