This article is intended for those who are not eligible for Form 1099-K. To see if you qualify for a 1099-K, please see US Businesses: Reporting your Income With Form 1099-K.
In this article:
Note: Our Customer Success team is available to answer any questions surrounding available reports, but are unable to provide extensive tax advice. Questions relating to how your taxes should be filed should be directed to a tax professional.
Accessing Your Financial Reports
To assist in your financial record keeping, download available reports from your account. After you've received a payout, select Reports, as shown below, to see payout history and other reports reflecting margin you earn and sales that take place through your dispensary.
Accessing practitioner Reports within your account.
Account Activity and Balance Report
The Account Activity and Balance Report lists transactions within the selected time period, breaking down information such as the retail price, patient discount, and your net earnings - to name a few!
To download this report:
- Log in to your account and go to Reports
- From the menu, select a year
Account Activity and Balance Report summary for the 2018 tax year.
Calculating Gross Sales, Cost of Goods, and Net Income
The amounts in the Account Activity and Balance Report, as shown above, are calculated for you to facilitate the process of reporting your taxes to the IRS. The example below will walk you through how the report can be used to calculate these values on your own if needed.
Step 1: Downloading the Account Activity and Balance Report.
From Reports, locate the Account Activity and Balance Report, select the current year and Download as CSV or Excel file. In our example below, we will be looking into the 2016 tax year.
Account Activity and Balance Report summary for the 2016 tax year.
The file will resemble the example below. Commonly, your accounting and tax records will need to compute Gross Sales, Cost of Sales, and Net Income. This report can be used to calculate those values.
Sample CSV export of Account Activity and Balance Report.
|Transaction Number||The shipment ID.|
|Transaction Type||Type of record displayed. i.e. payout, refund, or shipment.|
|Transaction Status||The record's status. i.e. amounts paid (payouts), shipped (orders), or received (refunds).|
|Order Number||Fullscript order number.|
|Transaction Date||The date the order was placed.|
|MSRP Total||Total MSRP (manufacturer suggested retail price) in the shipment.|
|Sales Total||Represents the total retail cost, and is calculated as the MSRP total less the patient discount.|
|Patient Discount||The discount amount applied to the order, or patient savings.|
|COGS Total||The fee earned by Fullscript representing product cost and fees associated with administering the transaction. Referred to as cost of sales or cost of goods sold (COGS).|
|Amount||Represents net earnings from the transaction, and is calculated as sales total less COGS total.|
|Balance||Running balance of funds available for payout.|
Step 2: Calculating Gross Sales.
Gross sales represent the total retail value of orders transacted. For this, we sum up the values in the sales_total column. In this example, we see a total of $1,635.16.
Step 3: Calculating Cost of Sales.
Cost of Sales represents the cost your practice incurred to complete the sale. For this, we sum up the values in the cogs_total column. In this example, we see a total of $1,519.99.
Step 4: Calculating Net Income.
Net Income represents the total of the earnings payable to your business by Fullscript in the form of payouts. To calculate Net Income for the year, we deduct the Cost of Sales (Value B) from Gross Sales (Value A). In this example, we find a Net Income of $115.17.
An example of the Account Activity and Balance Report with Gross Sales, Cost of Sales, and Net Income calculated.
Step 5: Report these values as needed to complete your tax obligations.
Our Customer Success team is unable to provide guidance on how taxes should be reported to the IRS. Further, we are unable to walk you through the completion of tax forms. Please contact an accountant or tax professional if you are uncertain of your tax obligations.
Fullscript collects and remits applicable sales tax to the state for you, so you have one less thing to worry about.
Frequently Asked Questions
What do I need to share with my tax professional to complete my taxes?
✔ Account Activity & Balance Report (for tax year)
Why didn't I receive a 1099-K?
We only issue a 1099-K form if you meet both of the eligibility criteria below enforced by the IRS:
- You had $20,000 USD in sales during the calendar year AND
- You received 200 or more payments during the calendar year
An exception applies to those in the states of Massachusetts and Vermont who will receive a 1099-K if $600 or more in sales is transacted. Visit US Businesses: Reporting Your Income With Form 1099-K for more information.