What are Promotional Rebates?


#1

Aren’t promotional rebates something you agree to do?

I have a negative amount on my Debits side of my Income Column.

I never have done any Promotional “Rebate” programs…

I also have a Gift Wrap Credit in my Credits Column…again, never enabled Gift wraap

Can anyone explain this to me ?

Edited by: JellyBeadZ on Jan 31, 2016 1:40 PM


#2

Are you using Amazon fulfillment of your products? If so, then these rebates should be offset by charges if you look at the payment details of any of these orders.

For example, Amazon may offer a free shipping promotion for its customers that extend to FBA sellers. In these situations, you will see a shipping charge and shipping credit on the order with a net $0 change to the balance of the sale.

For gift wrap, you do not need to offer it for FBA inventory as Amazon automatically enables it since they are the recipient of the fee and so you will see a charge and promotion credit for the same amount on the payment details of the order.


#3

+Are you using Amazon fulfillment of your products? If so, then these rebates should be offset by charges if you look at the payment details of any of these orders.+

+For example, Amazon may offer a free shipping promotion for its customers that extend to FBA sellers. In these situations, you will see a shipping charge and shipping credit on the order with a net $0 change to the balance of the sale.+

I am sorry to be such a dunder head…I see in the debit column a figure…say $2000…now shouldn’t I see a corresponding Credit of $2000, since it was an offering by Amazon not me?..I do see the individual Promo given on each payment page…but on my summary there is the Promotional Rebate of -$2000 Debit, and $75.12 Promotional Rebate Refunds in the Credit Column

Since the CPA doesn’t have Amazon experience, I have to have these answers for her.

Yes, this is FBA.

Edited by: JellyBeadZ on Feb 2, 2016 8:45 AM


#4

I’ve answered you in a different thread. MAV has answered you. Forgive me for saying so… but you are seriously overthinking this.

Just look at the Order Details for any order that shows a Promotional Rebate in your Payments. It will become immediately obvious to you how this works.

There was a charge added to the total Sales amount for something (i.e. shipping or gift wrap). Amazon collected that amount from the customer which temporarily landed in your account on the computer system, because you were the seller. Amazon then charged you back for that same amount. It’s something AZ is doing for their own accounting purposes. The net result to you is… NET ZERO.

My caution from the other thread still holds… don’t try to take them as an additional deduction. Do nothing with that column on your Schedule C at all. Because Amazon both adds and subtracts these in your account, they are not included in total revenue reported on the 1099. As far as the IRS is concerned, these don’t even exist for your business.


#5

Can you come with me to my CPA appointment tomorrow ?? LOL

I am really sorry for being a pain…


closed #6