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The value of my Account transactions do not add up to the Account ending balance shown on reports.

Example:

I sell $10,000 via Amazon.  The deduct $2,000 in various charges - service fees, comission, storage, shipping, fulfillment, etc.

I enter an Invoice to show that I have sold $10,000 via Amazon and I enter each of the fees with a negative amount to reduce the balance of the Invoice to match what Amazon paid me ($8,000).

When I run the Profit and Loss (cash basis), and look at the Sales Account via the General Ledger, I see my $10,000 in Sales, but a balance of $8,000

Profit and Loss (accrual basis) is correct.

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Ray Carnes (ray)
Best Answer

The payment that you got from Amazon actually represents three things:

  • How much you sold - $10,000

  • How much you were charged to sell - $2,000

  • How much you were paid - $8,000

It will work better to enter the payment in Odoo after you enter the Sales and the Charges/Expenses as two separate documents - a Customer Invoice for $10,000 and a Vendor Bill for $2,000. 

You can then leverage the standard workflows for paying them and the standard reports will "just work".

Since the $2,000 that you were charged by Amazon has already been 'paid' because they deducted $2,000 from your Sales, you will need to manually journal a 'payment', running through the bank, that nets the AP you would have owed them with the AR they would have owed you - had they not taken it already. 

Note: right click the images below and select VIEW IMAGE or OPEN IMAGE IN NEW TAB to see a larger version

1. Create a Customer Invoice for the full amount - $10,000 - of Sales:



2. Create a Vendor Bill for the amount - $2,000 - of the Expenses:

Note: You will have to make sure the VENDOR box on the Amazon partner record is checked, so that they are setup as both a Customer and a Vendor.



3. Pay the Customer Invoice for the amount - $8,000 - you got from Amazon:



4. Create a Manual Journal Entry that will net the $2,000 you owe Amazon with the $2,000 Amazon owes you (which they have already addressed by deducting the expenses from your sales in the payment they sent):



5. Use this 'payment' to mark the Vendor Bill as 'paid'.



6. Use this 'payment' to mark the Customer Invoice as 'paid':




The Profit and Loss / Income Statement (cash OR accrual based) will now look like this:





The Balance Sheet (cash OR accrual based) will now look like this:



 

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