How to Record App Store Revenue Net of the 30% Apple or Google Commission
Recording gross subscription revenue and the app store commission as a separate selling expense when Apple App Store or Google Play deducts their fee before payout.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Bank | Asset (+) | 70.00 | - |
| App Store Commission Expense | Expense (+) | 30.00 | - |
| Subscription Revenue | Revenue (+) | - | 100.00 |
💡 Accountant's Note
Even though you only receive $70, you must record the full $100 as revenue and $30 as an expense. Recording only $70 as revenue would be incorrect for tax and growth analysis.
Practitioner & Systems Framework
💻 ERP Architecture
App store settlement reports (Apple's App Store Connect, Google Play Console) provide gross sales, refunds, and platform fees. Import these via API or monthly CSV into the ERP, mapping gross sales to Subscription Revenue and the 30% fee to App Store Commission Expense. Reconcile the net deposit to the bank statement. Note that Apple reduces its fee to 15% for the Small Business Program — confirm the applicable rate.
⚠️ Audit Flags
The principal vs. agent analysis must be documented — SaaS companies distributing through the App Store are typically the principal (they control the service before it's delivered), supporting gross revenue presentation. Auditors also verify that refunds processed by Apple or Google are recorded as Sales Returns, not netted against revenue, and that the commission rate is verified against the current App Store developer agreement.
📄 Required Documentation
Monthly App Store Connect / Google Play settlement report, developer program agreement confirming commission rate, gross-to-net revenue reconciliation, bank deposit confirmation, and principal vs. agent analysis memo.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.