E-commerce Knowledge Center
Explore our verified library of E-commerce transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
How to Record a Provision for Sales Returns in E-commerce
Estimating and recording expected product returns at month-end for online stores using the matching principle.
How to Reconcile Payment Processor Payouts from Stripe and PayPal
Recording the gross sale, processing fee, and net cash deposit when settling funds from Stripe, PayPal, or HyperPay.
How to Record a Prepaid Social Media Advertising Campaign
Capitalizing an upfront payment for a multi-month Meta or Google Ads campaign and amortizing it monthly.
How to Record an Influencer Barter Deal (Free Product for Promotion)
Accounting for inventory sent to an influencer in exchange for social media content — no cash changes hands.
How to Record a Cash on Delivery (COD) Order via Aramex or DHL
Setting up the courier receivable when a COD parcel is dispatched — common in Middle East e-commerce.
How to Record a Customer Cash Refund After a Product Return
Processing a full cash or bank transfer refund to a customer who returned a product.
How to Record a Credit Card Chargeback and Penalty Fee
Accounting for a forced reversal by the card network after a customer dispute, including the processor's chargeback penalty.
How to Accrue Affiliate Marketing Commissions Payable
Recording the commission liability to influencers and affiliate partners in the same period the referred sale is made.
How to Recognize Revenue for Monthly Subscription Boxes (ASC 606)
Stop deferring revenue incorrectly. Here is the exact journal entry to recognize subscription box revenue upon physical delivery under ASC 606.
How to Record Revenue When Acting as a Marketplace Agent (Net Basis)
Recognizing only the commission fee as revenue when the store facilitates a sale but does not control the goods.
How to Record Influencer Product Seeding Shipments
Expensing inventory sent to influencers for review without a sale or cash exchange.
How to Record an Affiliate Commission Cash Payout to an Influencer
Settling the commissions payable liability when transferring earned commissions to an affiliate partner.
How to Record a Direct Online Sale Paid by Credit Card (Gross Method)
Recording the full sale price as revenue and the payment gateway fee as a separate selling expense.
How to Recognize Revenue and COGS on a COD Order at Delivery
Recording revenue, COGS, and the courier receivable simultaneously at the point of confirmed COD delivery.
How to Record a Weekly COD Settlement Payout from Aramex or DHL
Clearing the courier receivable and recognizing delivery fees when the courier remits collected COD cash.
How to Record a Marketplace Sale on Noon or Amazon.ae (Gross Basis)
Recording the full sale price as revenue when the store is the principal seller on a third-party marketplace.
How to Record Marketplace Commission Deductions from Noon and Amazon Settlements
Accounting for platform selling fees deducted by the marketplace before paying out the merchant.
How to Record a Weekly Marketplace Cash Settlement from Noon or Amazon
Clearing the marketplace receivable when net cash is deposited after all fees and deductions.
How to Record a Buy-Now-Pay-Later Sale Through Tabby or Tamara
Recognizing full revenue at point of sale when a customer pays via a BNPL instalment provider.
How to Record the Merchant Fee Charged by Tabby or Tamara
Accounting for the BNPL provider's transaction fee deducted from the merchant settlement.
How to Record a Digital Product or Download Sale
Recognizing revenue immediately for e-books, templates, presets, or other digital goods with instant delivery.
How to Record an E-commerce Gift Card Sale
Recording the cash received from a gift card purchase as a liability, not revenue.
How to Record a Gift Card Redemption and Revenue Recognition
Converting the gift card liability to earned revenue and recognizing COGS when a customer redeems their card.
How to Record Gift Card Breakage Revenue from Unredeemed Balances
Recognizing income from gift card balances statistically unlikely to be redeemed, based on historical patterns.
How to Allocate Revenue Across Products in a Bundle Sale
Splitting bundle sale proceeds across individual products based on their standalone selling prices under IFRS 15.
How to Record an Inventory Purchase from a Supplier on Credit Terms
Recording goods received from a supplier on 30-day payment terms as an asset and a payable.
How to Record an Inventory Purchase Paid in Cash
Accounting for direct cash payment to a manufacturer or supplier for a new inventory batch.
How to Capitalize Landed Costs into Inventory (Freight, Duty and Clearing)
Adding shipping, insurance, import duties, and customs clearance fees to the cost of imported inventory under IAS 2.
How to Record COGS When an E-commerce Order is Fulfilled
Transferring inventory cost to Cost of Goods Sold at the moment of shipment or delivery.
How to Write Down Inventory to Net Realizable Value
Reducing the carrying value of inventory when the expected selling price falls below cost.
How to Record Inventory Shrinkage After a Physical Warehouse Count
Writing off the difference between system inventory and actual physical count due to loss, damage, or picking errors.
How to Create a Slow-Moving Inventory Reserve Provision
Establishing a prudence-based provision for inventory that has not sold in over 180 days and may require discounting.
How to Write Off Dead Stock and Dispose of Unsellable Inventory
Removing completely unsellable inventory from the books by drawing against the allowance account.
How to Record Inbound Consignment Stock Received from a Vendor
Tracking inventory received on consignment without recording it as the store's own asset.
How to Record a Consignment Sale and Vendor Payout
Recognizing only the commission as revenue when a consignment item sells and clearing the memo stock.
How to Record Revenue and COGS for a Dropshipping Order
Accounting for a dropshipped sale where the supplier ships directly to the customer — no inventory is held.
How to Record a Kitting or Bundling Assembly in the Warehouse
Reclassifying individual product components into a new bundle SKU when assembling kits in the warehouse.
How to Record Outbound Shipping Costs for Customer Orders
Expensing the courier charge for delivering a customer order as a selling and fulfillment cost.
How to Record Shipping Fees Charged to Customers
Recognizing shipping revenue when a customer pays for express or standard delivery at checkout.
How to Record a Third-Party Logistics (3PL) Monthly Service Fee
Accounting for the monthly invoice from a 3PL warehouse covering storage, pick-and-pack, and fulfillment services.
How to Record Warehouse Storage Fees Charged Per Pallet or Square Metre
Accounting for monthly charges from a third-party warehouse based on inventory space consumed.
How to Record Per-Order Pick-and-Pack Fees from a 3PL
Expensing the handling fee charged by a 3PL for picking, packing, and preparing each customer order for dispatch.
How to Record a Prepaid Shipping Label Credit Top-Up
Treating a bulk top-up to a courier shipping account as a prepaid asset, expensed as labels are consumed.
How to Record Return Shipping Costs Absorbed by the Store
Accounting for the cost of prepaid return labels provided to customers as a cost of the returns policy.
How to Record a Delivery Damage Claim Against a Courier
Setting up the insurance or damage claim receivable when a courier confirms liability for goods damaged in transit.
How to Record a Customer Return When the Product Is Restocked
Reversing both revenue and COGS and returning the item to inventory when a clean return is received.
How to Record a Customer Return When the Damaged Product Cannot Be Restocked
Processing a return where the customer receives a refund but the returned item is unsellable and must be expensed.
How to Record a Partial Refund or Goodwill Allowance to a Customer
Issuing a partial cash refund to a customer who keeps a slightly damaged item — without reversing the full sale.
How to Record a Marketplace-Initiated Refund from Noon or Amazon
Accounting for automatic customer refunds issued by the marketplace and charged back to the merchant.
How to Record a COD Order Rejected and Returned at the Door
Reversing all entries when a COD customer refuses to accept delivery and the order is sent back.
How to Record a HyperPay or PayTabs Weekly Settlement
Clearing the payment gateway receivable and recognizing processing fees when a regional gateway remits collected funds.
How to Reconcile and Record a PayPal Balance Withdrawal to Your Bank
Recording the transfer of accumulated PayPal balance to the main operating bank account.
How to Record a Bank Currency Conversion Fee on USD to JOD
Accounting for the bank's spread or fee when converting USD e-commerce proceeds to Jordanian dinars.
How to Record a Payment Gateway Reserve or Dispute Hold
Reclassifying gateway-held funds as restricted cash when a rolling reserve is imposed due to chargeback risk.
How to Reverse a Failed Card Payment After Initial Authorization
Voiding a sale entry when a payment authorization fails after the initial transaction is recorded.
How to Record an In-House Customer Instalment Plan Receivable
Recognizing full revenue at point of sale and splitting the receivable between current and long-term portions for own-funded instalment plans.
How to Release Monthly Ad Spend from a Prepaid Advertising Balance
Amortizing one month's portion of a prepaid advertising campaign from asset to expense.
How to Record a Google Shopping or Performance Max Campaign Invoice
Expensing a monthly Google Ads invoice for product listing and performance campaigns.
How to Record a Monthly SMS and Email Marketing Platform Subscription
Expensing recurring subscriptions to marketing automation tools like Klaviyo or Mailchimp.
How to Defer Revenue When Customers Earn Loyalty Points at Purchase
Splitting sale proceeds between recognized revenue and a deferred loyalty points liability under IFRS 15.
How to Record Loyalty Points Redeemed on a Customer Purchase
Converting the loyalty liability to earned revenue when a customer applies accumulated points at checkout.
How to Record Loyalty Points Breakage from Expired Unredeemed Points
Recognizing income from loyalty points that have expired without redemption based on historical expiry patterns.
How to Record Flash Sale and Promotional Discount Revenue During Black Friday or Eid
Separately tracking promotional price reductions as contra-revenue to preserve the gross revenue figure for analysis.
How to Record a Cash Referral Reward Paid to a Customer
Expensing a cash payment made to a referring customer as a customer acquisition cost.
How to Record Monthly Payroll for Warehouse and Fulfillment Staff
Accounting for gross wages of warehouse pickers, packers, and receiving staff as a fulfillment cost of revenue.
How to Record Monthly Payroll for the Customer Service and Returns Team
Expensing customer support staff wages — classified as Cost of Revenue or S&M depending on the business model.
How to Accrue End-of-Service Benefit (EOSB) for Warehouse Staff in Jordan
Monthly accrual of the statutory end-of-service indemnity for Jordanian warehouse employees.
How to Record the Employer Social Security Contribution for Operations Staff in Jordan
Accruing the employer's 14.25% Social Security Corporation (SSC) contribution on warehouse and operations payroll.
How to Record Packing Materials and Branded Packaging Costs
Expensing or capitalizing boxes, bubble wrap, tape, and branded packaging consumed in fulfillment.
How to Record a Monthly Shopify or WooCommerce Platform Subscription
Expensing the recurring monthly fee for the e-commerce store hosting platform.
How to Record an Annual App or Plugin Subscription for Your Online Store
Capitalizing an annual plugin payment as a prepaid asset and amortizing it monthly over the subscription period.
How to Record Domain Name and SSL Certificate Renewal Costs
Expensing annual domain registration and SSL security certificate renewal fees.
How to Capitalize ERP or Order Management System Implementation Costs
Recording the cost of implementing a new OMS or ERP as an intangible asset under IAS 38.
How to Record Monthly Amortization of a Capitalized ERP or Platform System
Recognizing monthly amortization expense on a capitalized ERP or OMS implementation over its useful life.
How to Record VAT Output Tax on Domestic E-commerce Sales in Jordan
Charging and recording 16% VAT on taxable product sales to Jordanian customers for ISTD remittance.
How to Record Recoverable VAT Input Tax on Inventory Purchases in Jordan
Separating 16% VAT paid to suppliers as a recoverable input tax asset, not part of inventory cost.
How to Record VAT Paid on Imported Goods at Jordanian Customs
Capturing the recoverable import VAT paid at the border when bringing inventory into Jordan.
How to Apply VAT Reverse Charge on Digital Advertising from Google, Meta, and TikTok
Self-assessing VAT on digital advertising invoices from foreign platforms when operating in Jordan.
How to Record the Monthly VAT Remittance Payment to ISTD Jordan
Paying the net VAT liability (output minus input) to the Income and Sales Tax Department.
How to Capitalize Customs Duty into Imported Inventory Cost
Adding import duties paid at the Jordanian customs border to the cost of imported inventory under IAS 2.
How to Accrue Corporate Income Tax for an E-commerce Company in Jordan
Recording the annual income tax provision on the e-commerce company's taxable profit at year-end.
How to Withhold Tax on Fees Paid to Foreign Marketplaces Like Amazon and Noon
Applying Jordanian withholding tax when paying commissions or fees to foreign marketplace operators.
How to Record an Inventory Financing Drawdown from a Trade Credit Line
Using a revolving trade finance facility to purchase inventory ahead of peak season, recorded as a liability.
How to Record a Supplier Early Payment Discount
Capturing the saving when a supplier offers a cash discount for settling the invoice ahead of the due date.
How to Record a Merchant Cash Advance Drawdown from a Fintech Lender
Accounting for a lump-sum advance against future sales revenue, with the factor fee treated as a finance cost.
How to Record Daily Merchant Cash Advance Repayments
Accounting for the automatic daily deduction from sales proceeds to repay a merchant cash advance.
How to Record a Bank Overdraft During Peak Season Inventory Purchases
Correctly classifying a negative bank balance as a current liability when it occurs during high-inventory periods.
How to Record a Foreign Exchange Gain on a USD Inventory Purchase
Recognizing an FX gain when the JOD strengthened against the USD between invoice date and payment date.
How to Record a Foreign Exchange Loss on a USD Inventory Purchase
Recognizing an FX loss when the JOD weakened against the USD between invoice date and payment date.
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