The Accounting and Billing Process at SPACEGOATS

Note: Due to an adjustment of our General Terms and Conditions, our billing process has changed in May, 2021. The following guide will deal with both billing systems.

Your billing from SPACEGOATS is created monthly and consists of several components. Keep reading to get an overview and an explanation of the individual parts of the billing and accounting process as well as the respective documents that are issued.

Goods Credit Note (GC)

The first step is delivering your goods to Amazon. In the following month, you’ll receive a Goods Credit Note (GC) for the delivered quantity and the respective selling price we pay you for your products.

The selling price we pay you for products that have been shipped until February 28, 2021, amounts to 65 % of the gross selling price on Amazon (RRP or UVP) minus € 2. We developed this formula from experience and use it to make sure we pay you an amount as close as possible to the net profit your product will generate on Amazon.

The RRP of your product is € 18.47. Our selling price is therefore: € 18,47 * 0,65 – € 2 = € 10
If you deliver 20 pieces to Amazon in July, you’ll receive a Good Credit Note for 20 pc. * € 10 = € 200 at the beginning of August.

For products shipped after March 1, 2021, we use the following formula: UVP * 0.3 (at least EUR 2). Due to this lower selling price, we don’t have to issue a Difference Invoice (DI, see below) anymore and instead can bill everything that has to do with goods on credit notes.

This GC is a part of our monthly billing. You’ll receive only one per shipping and per month. However, we won’t pay you the full credit amount at once because that would often mean immense advance payments for us. Instead, with the monthly billing, we’ll pay you the selling price for the amount of products that have actually been sold in the previous month.

Partial Payment of the Goods Credit Note

The payment (or “Partial Payment”) of a Goods Credit Note goes as follows:

We pay you the supply delivery credit amount for the number of sold articles, minus 10 % retention.
We have to withhold these 10% for the moment since Amazon pays us with a delay as well. We’ll pay out the withheld amount in the next month.
The remaining amount of credit is paid in two installments: You’ll receive the first half on the 2nd and the other half on the 16th of the month.

In July, you delivered 20 pieces to Amazon, worth €10 each, and you received a GC for €200 € in August.
In August, you sell 10 of these products. That means we’ll pay you the amount of credit for 10 pieces (€100), minus 10% (€10). Therefore, we will pay you €90 in September: €45 on the 2nd and €45 on the 16th. You’ll receive the previously withheld €10 in October.

Difference Credit Note (DC) and Difference Invoice (DI)

The following process applies to all billings up to May, 2021:

In addition to the Goods Credit Note, you’ll receive a Difference Credit Note or Difference Invoice if products have been sold.
The difference is calculated as the difference between the net profit of the Amazon sale and the SPACEGOATS selling price according to the Goods Credit Note.

If the Amazon net profit of your sold product is higher than our selling price, you’ll receive the additional positive difference amount with a Difference Credit Note (DC). This is to make sure you’ll receive the full amount or profit that you made with your product on Amazon.

The products for which we pay you €10 according to the GC are being sold on Amazon for €22 (after Amazon fees). We’ll pay out the difference of an additional €22 – €10 = €12 as a Difference Credit Note on September 2nd.

In the reverse case, if the Amazon net profit is less than our selling price, this results in a negative difference. We’ll collect this amount during the monthly billing with a Difference Invoice (DI) since we’d lose money otherwise. This also makes sure that you receive exactly the profit that your product makes on Amazon.

Due to an adjustment of our General Terms and Conditions, the following adjustment applies to Difference documents starting from May, 2021:

There are only Difference Credit Notes that are used to adjust the initial selling price afterwards. This adjustment will usually be positive, meaning you will receive an additional payment. This variable remuneration component (before: difference amount) is calculated as follows:

Gross revenue from Amazon sales

Less applicable VAT on sales

Less Amazon shipping costs

Less Amazon selling fees

Less warehousing costs for Amazon inventory

Less sales margin per unit sent to the end customer

Less the purchase price (net) agreed in electronic Annex 1

= Variable remuneration amount

This remuneration amount now also includes for example warehouse costs and the additional € 0.50 per shipment.

Service Invoice (SI)

Another part of your monthly billing is the Service Invoice (SI). We use it to charge for example incurred delivery and storage fees, the basic fee, and other services you booked (such as PPC costs or packaging registration).

Goods Invoice (GI)

Additionally, we issue Goods Invoices. Starting in the billing period of November 2021, a GI is issued in order to reflect stock adjustments and remissions. GIs do not have to be paid anymore since they only act as a corrective document to the original GC that is mentioned in the GI invoice items.

Booking overviews

Finally, you’ll receive three booking overviews for each accounting month. These show an overview of your payouts, how the difference amounts are calculated as well as further details that are relevant to your accounting:

  • Overview 1: Payments on the 2nd of the month
  • Overview 2: Payments on the 16th of the month
  • Overview 3: List of already shipped products and their sales in the respective period (= basis for GC payment)