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.
Provision for Sales Returns (E-commerce)
Estimating and recording expected returns for online sales at the end of the month.
Reconciling Payouts from Payment Processors
Recording the net cash received after processing fees from Stripe, PayPal, or HyperPay.
Prepaid Social Media Ad Campaign
Recording a large upfront payment for a 3-month marketing campaign on Meta or Google Ads.
Influencer Barter (Product for Promotion)
Sending free products to an influencer in exchange for social media coverage.
Cash on Delivery (COD) Collection via Courier
Recording the receivable from a courier (like Aramex or DHL) after they deliver a COD order.
Customer Refund (Cash/Bank)
Processing a full cash refund to a customer after they returned a product.
Credit Card Chargeback & Fee
Recording a forced refund by a bank due to a customer dispute, including the penalty fee.
Accruing Affiliate Marketing Commissions
Recording the commission owed to influencers or partners for sales made through their links.
Monthly Subscription Box (Physical Goods)
Recognizing revenue for a 'Snack Box' or 'Beauty Box' once it is shipped to the subscriber.
Revenue Recognition: Acting as Agent (Net)
Recording revenue for a marketplace sale where the company only keeps a commission (Net Basis).
Influencer Samples (Product Seedings)
Recording the cost of shipping free products to influencers for review (No sale).
Affiliate Commission Payout
Making the actual cash payment to an influencer for their accumulated sales commissions.
Direct Online Sale — Card Payment (Gross Method)
Recording a standard customer order paid by credit card through the website.
COD Order — Revenue Recognized at Delivery
Recognizing revenue at the moment the courier confirms successful delivery of a cash-on-delivery order.
COD Courier Settlement — Cash Received from Aramex / DHL
Recording the weekly batch payout from the courier company for all COD orders collected.
Marketplace Sale — Noon / Amazon.ae (Gross)
Recording a product sale made through a third-party marketplace where the store is the principal.
Marketplace Commission Deducted from Settlement
Recording the platform commission deducted by Noon or Amazon before paying out.
Marketplace Weekly Cash Settlement
Receiving the net payout from the marketplace after commissions and fees.
Buy-Now-Pay-Later Sale (Tabby / Tamara)
Recording a sale where the customer pays in instalments via a BNPL provider.
BNPL Merchant Fee Deduction (Tabby / Tamara)
Recording the fee charged by the BNPL provider for facilitating the instalment payment.
Digital Product / Download Sale
Recording a sale of a digital product (e-book, preset, template) with instant delivery.
E-commerce Gift Card Sale
Customer purchases a store gift card online.
Gift Card Redemption — Product Purchase
Customer uses a gift card to buy products from the online store.
Gift Card Breakage (Unredeemed)
Recognizing revenue from gift card balances statistically unlikely to ever be redeemed.
Bundle Sale — Revenue Allocation Across Items
Splitting the revenue from a discounted product bundle across individual items based on standalone selling prices.
Inventory Purchase from Supplier (Credit Terms)
Receiving a batch of products from a supplier on 30-day credit terms.
Inventory Purchase — Cash Payment
Buying a new product line directly from a manufacturer with immediate cash payment.
Landed Cost — Freight, Duty & Clearing Fees
Adding the full cost of getting inventory to the warehouse (shipping, insurance, customs, clearance).
COGS Recognition — Order Fulfilled
Transferring the cost of sold inventory to Cost of Goods Sold when an order ships.
Inventory Write-Down to Net Realizable Value
Reducing the value of inventory when the selling price falls below its cost (e.g., electronics, fashion).
Inventory Shrinkage — Physical Count Adjustment
Adjusting the books when the physical warehouse count shows fewer units than the system balance.
Slow-Moving Inventory Reserve (Provision)
Creating a reserve for stock that has not sold in over 180 days and may need to be discounted.
Dead Stock Disposal / Write-Off
Writing off inventory that is completely unsellable and must be disposed of.
Consignment Stock Received (Inbound)
Receiving products from a vendor for sale — ownership stays with the vendor until sold.
Consignment Sale — Revenue and Vendor Payout
Recording revenue from selling a consignment item and the liability to the vendor.
Dropshipping — Cost Recognition at Sale
Recording revenue and the corresponding supplier cost when a dropshipped order is placed.
Kitting / Bundling — Components to Finished Bundle
Assembling individual products into a bundled SKU in the warehouse.
Outbound Shipping Cost (Courier Expense)
Recording the cost of shipping a customer order via a courier company.
Shipping Fee Charged to Customer
Recording the shipping fee collected from a customer who opted for express delivery.
Third-Party Logistics (3PL) Monthly Fee
Paying a 3PL warehouse for storage, pick-and-pack, and fulfilment services.
Warehouse Storage Fee (Per Pallet / Sqm)
Monthly charge for storing inventory in a third-party warehouse based on space used.
Pick-and-Pack Fee Per Order
Recording the per-order handling fee charged by the 3PL for picking, packing, and preparing shipments.
Prepaid Shipping Label Credit
Loading credit onto a shipping account (Aramex, DHL) for label printing.
Return Shipping Cost Absorbed by Store
Recording the cost of a prepaid return label provided to a customer.
Delivery Damage Claim Against Courier
Recording a receivable from the courier for goods damaged in transit.
Customer Return — Product Restocked
Processing a return where the product is in perfect condition and goes back into inventory.
Customer Return — Damaged Product (Not Restocked)
Processing a return where the product is damaged and cannot be resold.
Partial Refund / Goodwill Allowance
Issuing a 30% partial refund to a customer who received a slightly damaged item but kept it.
Marketplace-Initiated Refund (Noon / Amazon)
Recording when a marketplace automatically refunds a customer and charges the merchant.
COD Return — Order Rejected at Door
Recording a COD order that was returned because the customer refused delivery.
HyperPay / PayTabs Settlement (Net of Fee)
Recording the weekly bank deposit from a regional payment gateway after processing fees.
PayPal Payout Reconciliation
Transferring accumulated PayPal balance to the main bank account.
Currency Conversion Fee (USD to JOD)
Recording the bank's fee when converting USD sales proceeds to local currency.
Payment Gateway Dispute Hold / Reserve
Recording funds held by Stripe or PayPal as a rolling reserve due to high chargeback rates.
Failed Payment Reversal
Reversing a sale when a card payment fails after initial authorization.
In-House Instalment Plan — Receivable
Recording a sale where the store offers its own 4-instalment payment plan without a BNPL provider.
Monthly Ad Spend Recognized (From Prepaid)
Moving one month of the prepaid advertising campaign from asset to expense.
Google Shopping / Performance Max Campaign
Recording a direct monthly Google Ads invoice for product listing campaigns.
SMS & Email Marketing Tool Subscription
Monthly subscription for a marketing automation platform (Klaviyo, Mailchimp).
Customer Loyalty Points Earned — Revenue Deferral
Deferring a portion of revenue when a customer earns loyalty points on a purchase.
Loyalty Points Redeemed on Purchase
A customer applies accumulated points to get a discount on their next order.
Loyalty Points Breakage (Expired Points)
Recognizing revenue from loyalty points that expired without being redeemed.
Flash Sale / Promotional Discount
Recording sales during a Black Friday or Eid sale at a significantly reduced price.
Referral Reward — Cash Paid to Referrer
Paying a customer JOD 10 cash for referring a friend who made a first purchase.
Warehouse Staff Monthly Payroll
Recording gross wages for warehouse pickers, packers, and receiving staff.
Customer Service Team Payroll
Recording the monthly wages for the customer support and returns team.
EOSB Monthly Provision — Warehouse Staff (Jordan)
Accruing the end-of-service benefit for Jordanian warehouse employees.
SSC Employer Share — Warehouse & Ops Staff (Jordan)
Recording the employer's 14.25% social security contribution for operations staff.
Packing Materials & Supplies
Recording the cost of boxes, bubble wrap, tape, and branded packaging consumed weekly.
Shopify / WooCommerce Monthly Subscription
Recording the monthly platform fee for hosting the online store.
Annual App / Plugin Subscription
Paying for annual subscriptions to essential store plugins (reviews, upsell, loyalty apps).
Domain Name & SSL Certificate Renewal
Annual payment for domain registration and SSL security certificate.
ERP / OMS Implementation Cost
Capitalizing the cost of implementing an Order Management System or ERP for the e-commerce operation.
Monthly Amortization of ERP / Platform System
Amortizing the capitalized ERP implementation cost monthly.
VAT Output Tax on Domestic Sales (Jordan)
Recording 16% VAT on taxable product sales to Jordanian customers.
VAT Input Tax on Inventory Purchases
Recording recoverable 16% VAT paid to suppliers on inventory purchases.
VAT on Imported Goods (Customs Border)
Recording VAT paid at customs when importing goods into Jordan.
VAT Reverse Charge on Digital Advertising
Self-assessing VAT on Google, Meta, and TikTok advertising invoices from foreign entities.
Monthly VAT Remittance to ISTD
Paying the net VAT liability (output minus input) to the Income & Sales Tax Department.
Customs Duty Capitalized into Inventory
Adding customs duties and import fees to the cost of imported inventory.
Corporate Income Tax Provision
Accruing the annual income tax on the e-commerce company's taxable profit.
Withholding Tax on Foreign Marketplace Fees
Withholding tax when paying commissions to a foreign marketplace (Amazon, Noon) under Jordan's tax law.
Inventory Financing — Trade Credit Line
Drawing down a revolving credit facility to purchase inventory ahead of peak season.
Supplier Early Payment Discount
Capturing a 2% discount from a supplier for paying within 10 days instead of 30.
Merchant Cash Advance — Drawdown
Receiving a lump-sum advance against future sales revenue from a fintech lender.
Merchant Cash Advance — Daily Revenue Deduction
Recording the daily automatic deduction from sales revenue to repay the merchant cash advance.
Bank Overdraft Utilization — Peak Season
Recording inventory payments made when the bank balance goes negative during Ramadan peak stocking.
FX Gain on USD Inventory Purchase
Recording a foreign exchange gain when a USD supplier invoice is settled at a more favorable rate.
FX Loss on USD Inventory Purchase
Recording a foreign exchange loss when the JOD weakened against USD at payment date.
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