Identifying, accumulating and posting individual order information from multiple sales channels and source systems is challenging and time consuming, even when using the most advanced order management systems. MarginDriver handles the heavy labor of this project by pulling all of the relevant cost and revenue data from the user’s source systems (inventory management, order management, shipping, marketplace accounts) and processing it to generate detailed gross profit reports and analytics tools.
Through this process, MarginDriver solves the cumbersome and time consuming accounting task of posting data from individual order transactions to the user’s general ledger. This order data is aggregated by sales channel and presented as gross profit reports by day and month. The monthly reports are then broken down into journal entries for automatic posting to the user’s general ledger with just a few simple clicks.
MarginDriver eliminates the need for numerous general ledger postings from various supporting software systems because it addresses currency conversion rates, credit card fees, seller fees, allowances for returns and customer credits, as well as product purchase price and shipping costs; all of which is formulated into daily and monthly gross profit reports prepared using the accrual method of accounting in accordance with generally accepted accounting principles (GAAP) available for review and use prior to being posted to the user’s general ledger.
Accuracy of information is critical in accounting and financial reporting. Internet retailers typically are faced with managing thousands of orders and tens of thousands of individual pieces of data from various sources to generate monthly financial reports. This information is often subject to rounding, floating currency conversion rates, customer refunds, changing seller fees, etc., all of which requiring the use of some estimation.
Therefore, month-end reconciliation of accounts receivables (AR) from third parties is required to assure the accuracy of these financial reports. MarginDriver enables third-party verification through automated retrieval of order-related accounts receivable balances from major selling channels and payment processors while providing the user with the tools for making required month-end adjustments to ensure the accuracy of their accounting reports.