Reconciling to the Mercari 1099-K

Why is Mercari's total different from My Reseller Genie?

Each platform interprets reporting requirements on the 1099-K a bit different. Here's what's causing the difference with Mercari:

1. Mercari uses the "Completed Date" for their 1099-K reporting -- MRG uses the "Sale Date"
2. Mercari includes what the buyer paid in shipping as part of your revenue
3. Mercari includes sales tax as part of your revenue

How to bookkeep around this

In order to get our revenue to match the 1099-K without paying excess taxes, we can do the following:

1. Download the current and prior year's "Sales Report" from Mercari (so if you're filing your 2024 taxes, download the 2023 and 2024 report)
2. Look in the prior year's report for any sales completed in the current year (so if you're looking in the 2023 report, find the sales completed in 2024).
3. Find those sales in MRG and update the "Sale Date" to the "Completed Date" or if they aren't recorded in MRG, record them (make sure the sale date in MRG is the "Completed Date" from the report).
4. Look in the current year's report for any sales completed in the following year (so if you're looking in the 2024 report, find the sales completed in 2025).
5. Find those sales in MRG and update the "Sale Date" to the "Completed Date".
6. Lastly, record another sale in MRG with the following information (for any calculations, use the sales that were completed in the current tax year -- so you'll need to reference both reports from Mercari):
   • Item Title: "Reconciling Entry for Mercari [tax year] Shipping and Sales Tax"
   • Sale Date: [last day of tax year] (so if it's for 2024 taxes, then 12/31/2024)
   • Sale Price: [sum of "Buyer Shipping Fee" and "Sales Tax Charged to Buyer"]
   • Shipping Costs: [sum of "Buyer Shipping Fee"]
   • Transaction Fees: [sum of "Sales Tax Charged to Buyer"]
   • Sales Platform: Mercari

This process should get your revenue totals to line up with Mercari and also ensure that you don't incorrectly pay taxes on the extra revenue that Mercari is reporting. It's possible your accountant may have an alternative bookkeeping method in mind, if so, always defer to their judgement.