Best practices for tracking Amazon Ads spend as an accounting expense
Is your ACoS destroying your net margin? Learn how to automatically map ad invoice deductions into your P&L.
Amazon Advertising (Sponsored Products, Sponsored Brands) is a massive expense for sellers. But from an accounting perspective, how you treat this spend changes everything about your P&L.
Deduction from Settlement vs. Credit Card Charges
Amazon often deducts ad spend directly from your bi-weekly settlement payout. In your bank statement, you just see a smaller deposit. If you do not account for this, your revenue looks artificially low, and your marketing expenses look zero.
B2B Invoicing and ITC Recovery
Amazon provides a separate B2B invoice for advertising services containing 18% GST. If your accountant isn't actively mapping these invoices into Tally, you are losing 18% of your ad spend in unclaimed Input Tax Credit (ITC).
Configure MaruTally to auto-detect the "Advertising" transaction type in your settlement report and route it instantly to your Marketing Expense ledger.
Want to See MaruTally Handle This Automatically?
The processes described in this guide are automated inside MaruTally. Book a free demo to see live reconciliation using your own settlement data.
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