As sales of your product accumulate you build up a balance on Paddle which is then paid out when it reaches a threshold (read more about that here).
Alongside this payout process, you are provided with a series of documents that help you understand what revenue you made, what fees you incurred, and so on. Below are the different types of documents and how you access them.
What do I receive?
You will receive a copy of each of the following documents per payout currency you have enabled (not the currencies you sell in, but those you receive your payout in). This includes a Statement, one or more Reverse Invoices, and a Remittance Advice document.
Your Paddle statement is always sent monthly, separate from any payouts and supporting documentation. This means that if you don’t receive any payout because you haven’t met the threshold, you will still receive a statement. This outlines some of your core financial data regarding your Paddle account, including:
- Total Gross Sales
- Determined by (payments received + disputes won) - (payments refunded + disputes lost)
- Sales Taxes Withheld
- Paddle’s fees
- Account adjustments
- Manual adjustments made by Paddle to your account balance in extenuating circumstances
- Your opening and closing balances
A ‘Reverse Invoice’ is a document we automatically generate and provide you with, that acts as an invoice from you to Paddle for the amount of your payout. You will receive one or two of these invoices depending on the territories your products are sold into. That’s a lot easier for accounting purposes than dealing with thousands of receipts and invoices! Each month whenever you receive a payout you will be sent one or both of the following:
- United States: When customers from the United States purchase your products, this will be handled through our US entity, Paddle.com Inc.. This US revenue you earn is then paid out to you, and you receive a US ‘reverse invoice’ from Paddle.com Inc.
- Rest of World (RoW): When your products are sold to customers outside of the United States, we do so using either our UK business entity, Paddle.com Market Ltd., or our Irish business entity, Paddle Payments Ltd., depending on where you’re based. You will then receive a reverse invoice from that UK or IRE entity relating to those ‘Rest of World’ sales.
The remittance advice document displays the amount paid out across both of the above ‘reverse invoices’, so you have a single document that confirms the total amount paid out.
If you only have revenue from either the US or the RoW, and therefore only receive one ‘reverse invoice’, you will still receive the remittance advice document.
How do I access these?
All of these documents will be emailed to you each month when you meet the payout threshold to qualify for them. Emails will be sent to the Admin users on your account and will require you to log in to access the documents, to ensure security.
For users who can access the payouts area - Admins and Finance roles in your Team - you can also access that area of the dashboard to download your documents.
Is this everything I need?
For accounting purposes and corporation tax purposes (not sales tax; Paddle has that covered), you might need to export transaction-level data to see the Paddle fee on each payment, and the end customer details. This can be accessed through the Reports section, in the ‘Transactions’ report.