The Envato invoices do not show the real total, why is that?


#1

I am very late to the party, i know, but here’s my issue.
I am an exclusive author, my item costs $48 and every time i have a sale, the invoice says: Invoice Total: USD $38.40
Which is not true, as i only get $33.60 after envato takes it’s cut.
So, how is this invoice legal, how do we suppose to use it?
I can’t go to my accountant with such invoice that shows a total and i actually get far less than that and with absolutely no way to justify where the rest of the money are.

Any thoughts?

P.S: I will keep issuing a single monthly invoice to Envato for the amount i receive, as i always did, i just wanted to know why this is happening and why nobody is bothered by it till now.


#2
  • List Price: $48
  • Buyer Fee: $9.60 ( 20% of List Price - charged to the buyer at time of purchase )
  • Item Price: $38.40 ( 80% of List Price - this appears on your invoice )
  • Author Fee: $4.80 ( 12.5% of Item Price - this is the part that changes as you sell more on the market - it starts at 37.5% and goes down to 12.5% of Item Price )
  • Net Earnings: $33.60 ( this is how much you end up with after the Envato Author Fee comes out of the Item Price )

This Item Price appears on our invoices because this is our price for tax purposes (after Envato has taken their platform buyer fee). The Author Fee is an expense for us at $4.80 - and that comes out of the item price $38.40.

This might make a bit more sense after looking at the monthly invoices here (this is a summary of all your expenses/Author Fees for a month).

More details: http://codecanyon.net/become_an_author


#3

Thanks for reply @dtbaker, i was aware of those as my initial post shows. My problem is the voodoo that happens with the invoice total, you can’t write a total on an invoice when actually the total is another one.
If those invoices are meant for us authors, then it should clearly say on them that from $38.40 in my case, $4.80 are market taxes and in the end i get only $33.60.
The way it is shown right now, i simply cannot justify where $4.80 are, i have no legal proof of them being held as an expense, from my local IRS standpoint, i have received $38.40 and i have spent $4.80 for my own purposes which makes me the bad guy here.


#4

Welcome to the world of Envato :slight_smile:


#5

Good question, but unfortunately there is no straight forward answer, you have to use your imagination.