the roll out of ebay managed payments

[lm-entertainment]

i'm sure a lot or most of you probably received the managed payments email this morning. in case you didn't, or missed here - ebay is rolling out managed payments later in the year with pre-registration opening shortly.

more info is located at https://sellercentre.ebay.com.au/managed-payments

[Anonymous]

The book keeping is easy but the MP fees become invisible.

Yes, my entry really only needs to show my nett profit but to an outside

observer the ebay fees just won't exist on paper so to speak.

If you enter the deposited amount as income then how do you

enter the MP fees as an expense ( unless you enter the deposited amount

without fees then enter the MP fees as an expense )
The actual bank account wouldn't display these totals.

As earlier stated I am not an accountant's bum so I may not

be seeing it all correctly..

[digital*ghost]

How did you handle PayPal fees, which were always deducted automatically from the payments you received?

However you handled those, do the same for eBay's FVF. 

[joz15au]

Does your software handle journal entries?  If so you just need to do an entry debiting fees, crediting sales for the relevant amount.  Or you could do as you say and just dissect the entry when posting showing the full sale amount then a debit for the fees.  From a management point of view it is always good to show the fees as a separate item so that you can see what the real picture is.

[Anonymous]

Under PayPal it was easy.

Enter the total sale amount as income.

Enter the PayPal fees as an expense.

Enter the monthly ebay invoice for FVF's etc as an expense.

Under the current system I can enter the sales total ( less MP fees )

when the payout lands as this is a verifiable transaction in my linked bank account

but I can't make an entry for for MP fees because they would not shown in my bank statement.

I can make an entry for the original sales total and then an entry for MP fees

but neither of these would show as actual transactions in the bank account.

I dislike accounting a lot.

[everard6920]

---

@Anonymous wrote:

Under PayPal it was easy.

Enter the total sale amount as income.

Enter the PayPal fees as an expense.

Enter the monthly ebay invoice for FVF's etc as an expense.

Under the current system I can enter the sales total ( less MP fees )

when the payout lands as this is a verifiable transaction in my linked bank account

but I can't make an entry for for MP fees because they would not shown in my bank statement.

I can make an entry for the original sales total and then an entry for MP fees

but neither of these would show as actual transactions in the bank account.

I dislike accounting a lot.

---

What I would do is download the order CSV, which states the total amount (pre-fees) and then you have a record of the original amount.

And as said, presumably the monthly eBay invoice will show a record of FVFs paid.

I agree that it's not as tidy and easy as with PayPal, but by keeping both the order CSVs and eBay invoices you still have a record of everything you need to prove why those amounts are in your bank account.

[Anonymous]

Proving what the amounts are isn't the problem.

Having no actual record ( in a taxation return ) of ebay MP fees is.

Actually it's not a real problem inasmuch as my tax return will be in order.

I guess in reality ebay, as a good corporate citizen, will declare the receipt

of these funds from Australian sellers.

[digital*ghost]

---

@Anonymous wrote:

I can make an entry for the original sales total and then an entry for MP fees

but neither of these would show as actual transactions in the bank account.

---

They'd show as paid when you get your monthly invoice from eBay - mine's due to be issued in the next couple of days, so I'll come back and confirm what the invoices look like, but I doubt there'll be much change to them, they always list all transactions and fees incurred. 

This is how I have to do it for Et*y - all of their fees are automatically deducted from payments received, no matter what type of fee it is, so you get no transaction receipt from a third party in order to show a record of payment that way, just a deposited amount less all fees already paid, so the simplest way to record it is to wait for the monthly downloadable summary, where it both lists and tallies every type of fee paid - it seems to be good enough for accountants who work with Etsy sellers, anyway. (This is why I find it easier to tally total revenue daily, and fees only quarterly, I've never worked with Quicken though, or any other proper accounting software actually so I'm not sure how helpful my posts may be). 

[everard6920]

---

@Anonymous wrote:

Proving what the amounts are isn't the problem.

Having no actual record ( in a taxation return ) of ebay MP fees is.

Actually it's not a real problem inasmuch as my tax return will be in order.

I guess in reality ebay, as a good corporate citizen, will declare the receipt

of these funds from Australian sellers.

---

I mean I don't think you need to worry because you can get all the information you need in order to enter the pre-fee amount from your order CSV. So in terms of your own record keeping, you (or your accountant) will have all the information they need.

The pre-fee amounts will never hit your bank account, but that doesn't matter - you can prove you paid the fees, by keeping your monthly invoices, just like you keep invoices for any other business expense.

I'm not sure what the issue is. The process is a little different, but I don't think you need to worry, because all of the same information will be available both your own personal records and your tax returns.

Presumably, in the example you used earlier, I think eBay would declare that you sold a $100 item to the ATO, I believe (turnover). And then you deducted your expenses when you do your tax return.

[Anonymous]

Ultimately, as far as accurate book keeping goes, there is no real issue I guess.

I just record the income ( sales less ebay MP fees ) as the payouts occur

and won't bother trying to record the MP fees taken out.

If Mr ATO visits I will have printed ebay records of the MP fees they removed

from my sales prior to the payouts.

My problem was that there would be no record in my ( or any seller's ) tax return

of MP fees paid to eBay ( just the nett income derived from eBay ).

Just spotted another mole hill. Time to go to work 🙂

[south.coffee]

Just received this email from the powers that be:

Dear South.coffee,

Compatible sellers are now being activated for managed payments.

"We’d like to offer you a $50 invoice credit when you register for managed payments by 31st August 2020*."

Is the $50 an inconvenience payment to cover the lost time and money spent trying to navigate all the headaches - or is it simply a bribe ?

I might wait for the $100.