E-commerce

Revenue Recognition: Acting as Agent (Net)

Recording revenue for a marketplace sale where the company only keeps a commission (Net Basis).

Account NameTypeDebit ($)Credit ($)
Cash / ReceivableAsset (+)100.00-
Payable to Third-Party VendorLiability (+)-85.00
Commission RevenueRevenue (+)-15.00

💡 Accountant's Note

If you don't control the goods and aren't responsible for fulfillment, you are an 'Agent.' You must only record your fee ($15) as revenue, not the total transaction value ($100).

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