So glad to have been guided here - I hope someone could help me...
I'm a sole trader - selling stuff through eBay mainly.
I am using Accounts Portal for keeping track of my accounts. One question I had was whether the postage fees I charge are classed as Gross Income or Net Income? I have had mixed opinions... I can easily set up a new account in Accounts Portal but need to define whether it is Revenue (Gross Income) or Other Income (Net Income). Most if not all of my payments including the postage charges come through PayPal - so they take their fee. I also slightly load the postage fee to cover me for packaging materials etc... So would that mean the postage fee I collect is Gross as an expense (PayPal fees) would be deducted? Another adviser said it would be Net - I'm just so confused?!
Have other questions too - but this will help me no end!
In your chart of accounts(settings) click on postage charges and tick show in sales. This will give you the option to put postage charges on your invoices and it will be posted to the right place. You see if you make sales of £100 and £5 postage you cannot invoice goods £105 but you should show the two amounts separate. I would think paypal fees would be bank charges but i am not sure as i have never dealt with this issue. Hopefully someone will be able to confirm the above.
