New feature: invoice request

[Theo]

There is a new feature for the buyer to request an invoice from the seller. However, an invoice is a document that details the funds received by the seller and it's proof of income. Since Sedo retains 10% of a sale, an invoice should not be generated for the full amount of a sale. Sedo needs to correct the language used in the Transfer Center. If a buyer needs an invoice for the full amount, Sedo should generate such a document.

 

[SedoCoUk]

Hello everyone,

Sedo works in the capacity of a third party during a domain sale. Since we are not the final recipient of the funds, we only issue a payment request on the seller’s behalf. The buyer can request an invoice from the seller through the Transfer Center if necessary. The seller will receive notification of the request and will need to upload the document. Since the commission is being paid by the seller not the buyer (unless otherwise specified) the invoice amount should be for the total purchase price. Sedo will provide the seller with a Payment Notification as well as an Invoice for the amount of the commission.

If you are a buyer and are responsible for paying the commission on a domain sale, only then will you receive both a payment request and an invoice from Sedo.

Please let me know if anyone has any questions. Thanks.

~Lisa

 

[Theo]

Lisa, I disagree and so does my CPA.

I am not going to supply the buyer with an invoice stating 10% more than what goes into my bank account.

Therefore, I've itemized it accordingly.

If you are not happy with this, then Sedo needs to pay the FULL amount to the seller each time, then invoice them for the 10% commission.

 

[artoo]

I agree this

Lisa, I disagree and so does my CPA.

I am not going to supply the buyer with an invoice stating 10% more than what goes into my bank account.

Therefore, I've itemized it accordingly.

If you are not happy with this, then Sedo needs to pay the FULL amount to the seller each time, then invoice them for the 10% commission.

 

[SedoCoUk]

Hi Theo,

Not being an expert in this I asked our finance team for clarification. This is their response:

An invoice from the seller to the buyer should be for the full amount. Because that’s what the seller is earning (and what the buyer has to pay). Sedo is merely the marketplace both parties came to agreement on and we also are their escrow service of choice. That’s why Sedo sends a payment request on behalf of the seller and cannot send an invoice for the full purchase price (which is the full income the seller has to invoice for).

At the same time we do send a separate invoice from Sedo to the seller for the commission of their sale. So from the seller’s point of view he is earning income in the full amount of the purchase price that he is invoicing the buyer for and he can offset the commission he paid that was invoiced to him from Sedo.

Cheers,

Tom

 

[Theo]

Tom,

My invoice to the buyer is itemized, listing what amount I receive and what goes to Sedo. If Sedo has a problem with that, I suggest that you look for an alternative method of providing proof of purchase to the buyer.

When a transaction occurs through Sedo, your company is not "merely the marketplace" but acts as the Escrow handling the buyer's funds and the seller's domain. As such there is never a direct exchange between buyer and seller, especially since the contract hides the buyer's information from the seller until the transaction completes.

If the buyer has an issue with the invoice I have produced, itemizing the proceeds they should contact me. As far as I am concerned, I fulfill my obligation once I hand over the domain to Sedo. The invoice should be an option and not a requirement. I am not objecting to the invoice part, however per my financial advisor's advice I shall not issue an invoice as if I received a full sale amount.

Please understand that this is becoming a thorn in ongoing transactions as you've introduced this feature without prior warning. I expect that Sedo releases the funds immediately, otherwise I am going to be very upset with Sedo.

 

[Theo]

There was never a problem with the funds, I think I over-reacted on the subject. Sedo has been very professional with this, as usual. Many thanks to Lisa and Tom.

The option to itemize the invoice is something that I'd recommend doing.

 

[fatter]

I do my own taxes so as a seller I guess if i claim full sale price i then must deduct the commison as an expense on the schedule C