Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions. Ecommerce is often used to refer to the sale of physical products online, but it can also describe any kind of commercial transaction that is facilitated through the internet.
You can easily maintain your Ecommerce business in Book Keeper, you just have to follow below steps:
1. You need to create 3 Accounts :
a) Amazon Customer Account > select Account Type as Sundry Debtors, select GST Registration Type as Consumer. Leave GSTIN as empty.
b) Amazon Seller Account > select Account Type as Sundry Creditors, select GST Registration Type as Regular. Enter GSTIN of Amazon India.
c) Commission Expenses Account > select Account Type as Direct Expense.
2. There can be two types of sales: B2B or B2C. When you receive order from Amazon you need to create sales voucher, select Amazon Customer in Customer/Cash option and press enter.
a) B2B Sales: When you will press Enter, a window will open and you can enter all details of Customer including GSTIN.
When you will view Invoice you will get the details of the customer that you have entered while creating Invoice, the Invoice will look like below.
As you can see we have entered GST number of the customer, when you are entering GST number it will be a B2B Invoice. This invoice will be reflected in B2B section of GSTR1.
b) B2C Sales: If the Customer is B2C and does not have a GSTIN then you need not enter the GST number when you are creating the invoice, you can check below image for the reference.
This invoice will be reflected in B2C section of GSTR1.
5. Now you have received payment from Amazon in your bank account for the orders that you have successfully completed on Amazon, you need to create Receipt From Customer.
Amazon pays you after deducting the commission charges. For example, total sales are Rs. 1180, after deduction 10% commission, Amazon pays you Rs. 1062.
You can refer to below image for reference:
6. Now at month end, Amazon sends you the Commision invoice including GST, you can claim ITC on this GST amount. For this, you need to create a Purchase voucher:
a) go to Transaction > Purchase > Create and select On Total Mode.
b) instead of Purchase Account select Commission Expense account and in Supplier/Cash select Amazon Seller Account.
c) Now you need to enter the amount that is mentioned by Amazon in the Commision invoice and apply tax on that.
7. You need to create Journal now to match the balance of accounts.
Debit Amazon Seller Account and Credit Amazon Customer Account.
Now you can check GSTR1 and GSTR2 Report
As you can see in GSTR1 report, both B2B and B2C invoices are coming.