Can anyone advise the best reports to use for Month end accounting for Vat purposes.
We are a vat registered business with Amazon.
I have been using the monthly summaries in Payments - then date range reports.
I was under the impression the sales figures provided included all sales , shipping & vat , then the expenses listed all the costs - ex vat.
As we get further through the year the payments received do not balance. I understand in some months we receive additional payments - as payments are made every 2 weeks , so some months we can receive 3 payments in a month , but when added up throughout the year we accrue a bigger difference.
We also receive AGL Invoices from Amazon , where Amazon buy our product & ship overseas (as we do not currently)
I have been advised by Amazon ,the AGL invoices are included in the sales figures provided , so struggling to find a solution.
Can anyone assist ?
Hello,
When it comes to month-end accounting for VAT purposes as a VAT registered business with Amazon, it’s important to ensure accurate reporting and reconciliation of your sales figures and expenses. While the specific reports to use may depend on your business structure and reporting requirements, I can provide some general guidance:
- Sales reports: The monthly summaries in the Payments section, including date range reports, are a good starting point for tracking your sales figures. These reports should ideally include all sales, shipping charges, and VAT. However, it’s crucial to review and validate the accuracy of these figures by comparing them with your own sales records and VAT invoices.
- Expense reports: Look for expense reports that list costs excluding VAT. These reports should provide a breakdown of your expenses, allowing you to track and account for your costs accurately. Again, it’s essential to review and validate these figures to ensure they align with your own records.
- Reconciliation: As you mentioned, you have observed discrepancies in the payments received, especially when additional payments are made in certain months. Reconciliation is key to identifying and resolving such differences. Compare the payments received against your sales and expense figures to identify any gaps or discrepancies. This will help you pinpoint the reasons behind the differences and take appropriate corrective measures.
- AGL Invoices: Regarding the AGL invoices received from Amazon, where they buy and ship your products overseas, it’s important to clarify how these transactions are accounted for. If Amazon includes these sales in the sales figures provided to you, it’s crucial to ensure that your own records reflect the same. Double-check that these sales and corresponding VAT are accurately accounted for in your VAT returns and reports.
To find a solution and address the discrepancies, it would be beneficial to consult with a professional accountant or VAT advisor. They can review your specific situation, analyze the reports and figures, and provide guidance tailored to your business needs. They can also assist in reconciling the differences and ensuring compliance with VAT regulations.
Remember, every business is unique, and VAT regulations can vary by jurisdiction. Seeking professional advice will help you navigate the complexities and ensure accurate reporting and compliance.
I hope this guidance helps you in your month-end accounting for VAT purposes on Amazon. If you have any further questions or need additional assistance, please feel free to ask. Good luck!