Where should I put ebay fees in my accounts?

blue_monkey_2

Fair enough Eddie, I'd put them in either but I believe I used to put them in 'other'. It has been a few years since I did eBay so cannot confirm what I did.

But, as a ccountant, you also should really know that you cannot apply all eBay fees to 'Cost of Sale' as, unless you are very lucky, not everything you list sells first time. It would be more approriate to analyse Listing Fees to Advertising.

People should reaslise that they should seperate eBay and Paypal fees though and not put them through together as one amount.

Also, another mistake people make is to use the Nett Paypal amount for their Turnover figure when they should be using the Gross fiigure, before fees are deducted. Just incase anyone who needs to know is reading this, not saying people here do.

Last day for Xmas posting. So looking forward to a break!!

timnicebutdim_2

Blue monkey - agree with you that ebay fees are advertising costs (as a selling/distribution overhead) but whether goods are sold/unsold is irrelevant as the figure for cost of sales is derived from:

Opening stock valuation
+ purchases (production costs)
- Closing stock valuation

So charges applied to unsold stock is irrelevant as closing stock is deducted from COS and carried forward into the next accounting period IYSWIM.