How do things like sales tax, shipping, or fulfillment fees get factored into royalty accounting?

By default, our importers map the royalty total (the amount you receive) for each royalty transaction in your data source imports, and do not bring in additional taxes or fees present in reporting such as sales tax / VAT, shipping, or fulfillment fee amounts - as these totals are typically reconciled outside of royalty accounting.

For example, if a $5 shipping & handling fee was assessed for an e-commerce sale, the assumption is that this $5 went right back out the door to cover the fulfillment costs. Although this gross income is likely to be accounted for in your bookkeeping / taxes - it is unlikely to have an affect on payable royalty totals.

If any of these totals do need to be accounted for within the system, you can do so by transposing these totals from your data to our Additionals worksheet and bulk importing these totals following the instructions detailed here in our Knowledge Base.

In addition, we've got some helpful information here regarding how to handle fulfillment expenses in your royalty accounting - as well as guidance on how to represent fulfillment fees not present in your data (i.e. assessed after the royalty total reported in your data) here.

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