Billing - Interesting Accounting for DC

[asliceofdelight]

Just got started on this and find this very interesting. I think I understood this correctly from another post but prefer a 2nd opinion. After I processed the shipping label I went to the 'shop payment balance" and saw this --->

Aug 29, 2012

Payment for Order #XXXXXX (1 item)

purchased by XXXXX on Aug 28, 2012

funds will be available on Aug 31, 2012
$7.60 ($0.48) $7.12 $7.12

And I thought that's weird - it seemed to high and then I realized they did not deduct the shipping charge. Then I poked around and 'found' it on my esty bill for shipping. I'm sorry but that is weird accounting. They can take out their processing fee but not the shipping fee at the same time? Is that what is happening for people currently? I don't look forward to figuring out the accounting and how I will set it up in Quickbooks. I had a nice lean setup with my Paypal income, shipping and fees, my fair income and my esty income and fees - but now there is this 'intermediary holding' center that I have to figure out how to apply it to my quickbooks process. Oh the joy ;+} Anyway if someone can confirm this I'd be at least knowing I'm not missing something here.
THANKS

[Former_Member]

You are correct. The cost of the shipping label as well as the FVF are both added to your Etsy bill.

[asliceofdelight]

Thanks

[AlaiynaBSoaps]

How can they take the cost of the shipping fee out of the original transaction when you may not have shipped the item yet. The processing fees can be automatically deducted because they occur at the time of sale - shipping fees do not. Because of the Monday sweep of funds there is always the possibility that there will be no funds in your shop payment account to deduct shipping fees from. People pay for their shipping fees in many different ways utilizing several different services and the accounting of those fees is up to the seller.

I see what you are saying about keeping the fees for shipping associated with the transaction, but as long as they are a separate line item, it should not be a problem accounting for them.

[asliceofdelight]

Faith - that makes sense.

[BabsiesPlace]

Please Lord don't let anyone buy from me with DC until they have it all figured out. After reading each post it seems to be going downhill instead of up. Shipping is altogether a different animal. The two should be separated not combined. Maybe they should actually check out Paypal and google check-out to see how it really works.

This is a good perk here if it's done wisely and with sense. I am sure it will all be worked out in the long run, in the meantime I do hope a customer will use my other means of payment. Sorry etsy but it is a little scary.

[asliceofdelight]

It is true on one level what you say Barbara - they wanted to develop some new way thinking it would be unique instead of 'mimicking' how it is done elsewhere - in which it is all figured out. I remember once having a bad experience at a ski resort purchasing my lift ticket, skis/boots/poles and lesson. I wrote a letter to the President and told him to look at how the Cross Country Ski resort did it that had it figured out. All the steps are the same just the skiing part was different. I received a letter back (with free lift tickets and such) because the President agreed they could have done a better job with that and recognized that other ski resorts (downhill) were not their only 'competitor'. I hope Etsy does take a closer look at the 'process' and integrate the best of all the others instead of trying to make this check out so completely their own. In the meantime I understand how it works (and it's quirks) that I can live with it and so will my customers and future customers if they like the simplicity of not having to login to paypal....time will tell

[PrairiePrimitives]

Yes, Etsy often seems to prefer to reinvent the wheel!

[OriginalsbyLauren]

It makes no difference to me as long as I get charged the correct amount, which I always do

It would be nice , but etsy processes the order immediately, how are they going to know how much shipping will cost?

[asliceofdelight]

They will know at the time that I purchase the shipping label - at which time they can deduct that from their 'holding tank' with a new updated view on my end. And not have to 'charge' me on their billing end. I know it all comes out in the end but loggically - they have collected the money for the shipping they can deduct that OR more if one were to miscalculate which can happen. Yet there will still be funds between the income and shipping if that were to occur.