Gross vs. net: understand your marketplace payout

Sales gross is the seller’s price after seller-funded discounts, including platform-funded discounts, excluding shipping, and before refunds. This is the amount Pawi uses for the original sale. Platform fees and reported withholding stay separate; they do not reduce that sale’s gross.

Payout is the amount the platform releases after deductions and adjustments. It helps explain the movement of money, but it is not a substitute for the sales figure.

These fictional figures show how the amounts can fit together. This example has no refunds, shipping adjustments, or other movements.

₱6,898.00 − ₱1,146.00 − ₱29.20 = ₱5,722.80. Recording only the payout as sales would hide both the fees and the withholding. Pawi keeps those amounts distinct so you can review how the settlement adds up.

Your own export may contain refunds and other adjustments. Pawi checks supported order and finance inputs together; this simplified illustration is not proof that a particular upload has reconciled.

Suppose an item is ₱500 after any seller discount. A platform-funded voucher means the buyer pays ₱400, and the platform funds the other ₱100. Pawi’s sales gross is still ₱500. That is why “what the buyer paid” can be misleading shorthand for gross.

A seller-funded discount works differently: it reduces the seller’s selling price. Keep the funding source clear when checking the order against its settlement.

Pawi reads withholding reported in supported marketplace exports and tracks it separately. It does not calculate a withholding amount from your sales gross.

A marketplace withholding line and an actual Form 2307 withholding certificate are separate pieces of evidence. An imported amount is not automatically a verified tax credit you can claim. Keep the certificate and ask your accountant to check the supporting documents, applicable period, and any amount used on a return.

Do not infer a platform’s withholding treatment from a sales total or the ₱500,000 figure alone. This guide does not determine whether withholding applies to your situation.

Pawi prepares invoice previews and supported book layouts from your records. Refunds remain separate from the original sale, and the book views distinguish gross, deductions, and payout. Review the figures and their periods before transcribing them.

Pawi’s calculations do not decide your registration, tax profile, or filing obligations. You remain responsible for the physical bookkeeping and for confirming how the records apply to your business.