Numeral pulls sales data and prepares filings for each period using cash-based accounting. Liability dates are determined by the time and date of the transaction, not of order fulfillment. Returns and refunds are accounted for as follows:
If a customer purchases an item in the month of January and then returns the item in the month of February, the January filing will report the initial transaction. The refund is reported in the February filing. You may see a line item titled “Refund Discrepancy” and a negative amount of sales in that next return.
Because of this, and because of the previously mentioned fact that liability dates are based on time of transaction, small discrepancies in total sales numbers between what Numeral displays and what your internal team displays are normal. This is especially true if your company does not use cash-based accounting.
If you ever have questions about the numbers provided for a filing, our team is happy to share the official filing reports that are being used to prepare a return. Ultimately, any differences will balance out throughout the year as transactions, refunds, and returns are accounted for at the time they occur.