How to reconcile Yandex Market financial reports?

Torgstat's digitization is built on two main Yandex Market reports – the payment report and the service cost report. Why these reports? They allow you to build financial analytics using the accrual method and together contain a complete list of payment and service transactions for the required period. Additionally, these reports can be used to generate closing documents.

Why is the accrual method used?

With this method, income and expenses are recognized in the reporting period in which they occurred, regardless of the actual receipt of money or goods, or the completion of work or services.

The alternative is the cash method, where the date of income recognition is the day payment is received in your current account or the actual transfer of property (work, services).

Unlike the cash method, the accrual method does not distort the company's results and shows how the business is actually performing. Since our goal is to make your business transparent, we use this method. Additionally, taxes are also calculated using the accrual method.

If a customer payment occurs, we record the purchase; if a refund occurs, we record the refund. All service charges are recorded exactly when the marketplace accrues them.

Why do we emphasize how to recognize revenue?

Yandex Market itself shows revenue in the Analytics section and in the Sales Report as "customer payments for deliveries in the selected period." That is, a customer might pay for an order in December, but delivery occurs in January. This means the revenue is attributed to January. This corresponds to how the marketplace will transfer the money for the product to you, but not to how your business actually performed.

We strive to reflect how your business actually performed in December, how customers paid in December, and how your revenue was generated. Therefore, we compile our financial reports based on when sales transactions were actually completed and service charges were accrued.

What exactly needs to be reconciled?

Revenue, realized sales amount, and service costs.

Realized sales amount is the sum of customer payments minus the sum of refunds. This is how much customers paid to the marketplace.

However, it is known that the marketplace regularly gives customers discounts from your price. This is called co-investment, where the marketplace reduces your price to make it more attractive to the customer. The difference is returned to you in points, which are automatically spent on paying the commission (product placement service).

Thus, your Revenue consists of the Realized sales amount plus the Points amount accrued from product sales. (Points are also deducted when a commission refund occurs).

Service cost is the total of all expenses for services accrued by the marketplace.

To find the detailed breakdown in the Torgstat interface, go to the My Store – Financial Reports section – generate a report by selecting the grouping and period. The easiest way to prepare a report for reconciliation is to select the "by month" grouping. Then, click on the + at the beginning of the desired report row to expand the detailed breakdown.

Where to find closing documents for reconciliation?

The easiest way to verify that our calculations are correct is to reconcile them against Yandex Market's closing documents.

This section contains a list of closing documents for each month. In the Files column, there are two buttons – Documents and Details.

Documents is an archive containing the Certificate of Services Rendered and the Invoice. This can be used to verify that the service amounts are calculated correctly. The certificate is based on the Service Cost Report.

Details is an Excel file that shows which transactions affected the payout for the selected period.

To calculate the Realized sales amount, you just need to find the following amounts on the first sheet (Order Execution Report) and add them together:

Received from Consumers on behalf of the Client

Returned to Consumers at the Client's expense and reimbursed for the Contractor's expenses

The Service amount can be easily reconciled using the Certificate of Services Rendered; find the column "Total per certificate:" and compare it with the "Total for services - Per certificate" value from our financial report breakdown.

Why can't the "Cost of services rendered per certificates" column from the Order Execution Report in the Details file be used for reconciliation? The reason is that Yandex Market includes service charges there, part of which comes from the previous certificate and part from the current one.

There is a division into service types – mandatory and additional, which can be learned about from the documentation:

Mandatory services include:

Product placement on the showcase, processing and transfer of the buyer's payment, middle mile, delivery and express delivery to the buyer, smart pricing, sales boost, participation in the loyalty program, paid storage of unclaimed and returned orders, commission for the sale of unclaimed goods.

Additional services include:

Order processing, product pickup, supply through a transit warehouse, acceptance of surplus at the warehouse, disposal, extended access to Market services, payment for banners and shelves, personal manager.

Thus, in the current period, the payment includes mandatory services for the current month, plus additional services from the previous one. (This is not suitable for reconciling the current period).

How to reconcile revenue?

It is not possible to fully reconcile revenue together with points using closing documents (they do not contain points, only real money); for this, we need the Payment Report. Go to the Financial Reports section:

Generate a report for the required period:

1. Filter the Transaction Date strictly to the required period.

Why, you might ask? Even if you request a payment report, say, from January 1 to January 31, Yandex Market, without your knowledge, will kindly add extra transactions that may somehow be related to transactions actually made in January. Moreover, the summary sheet of the report will misinform you and contain the total for all transactions, including the extra ones, not just the January ones.

2. Filter the Transaction Source, leaving only the following categories:

Points for Market discount

Points for Yandex Plus discount

Refund of points for Market discount

Refund of points for Yandex Plus discount

Refund of customer payment

Refund of discount for participation in joint promotions

Compensation for lost order

Customer payment

Thus, by adding up the amounts in the Transaction Amount column, you will get the Gross Revenue value.