I have some criticism for how you accounted for invoiced orders. When running date range reports, we run one for standard orders and one for invoiced orders and then merge the 2. We do this on a monthly, quarterly, and yearly basis. This gives us a monthly 1099k equivalent number. However, with invoiced orders, for the purposes of monthly 1099k detailing, you’ve chosen to count the sales in the month the order was placed, not the month in which the payment was received. This causes a shift in sales, taxes, credit, etc for a high percentage of invoiced orders from one month to another on the 1099K. We’re trying to figure out how to create a date range report, with matching numbers for the purpose of having a check figure, without having to manually move all of the invoiced orders.
We notice also that this can create an end of year revenue recognition issue. Our 1099K is higher by the total of 1 order placed in December 2019, but that we will not get payment for until 2020. This is the opposite of how standard orders are treated, suggesting that this is in effect, a short-term loan program that Amazon facilitates. This would explain why you count the sale in the month the order is placed. We assume it’s essentially handled as Amazon has paid for the item and loaned that amount to the buyer free of charge for X days, so there was a resulting payment transaction on the date of the order, despite the fact that the seller does not get paid for X weeks.
It would be exceedingly helpful to sellers if you could provide them with some guidance for how to handle these outlier items. If there is a way to run the reports that helps create check figures that match the 1099K reported figures, we’d love the detail on how to do so.
From my perspective, if it were an option, I would eliminate invoiced orders. It represents an incredibly small percentage of our sales, and creates accounting headaches galore. Whenever I cannot figure out why figures don’t match, I look at invoiced orders and prepare to make manual adjustments.