China ecommerce presales: reconcile deposits, final payments and refunds
Reconcile deposits, balance payments, refunds and platform settlements for China ecommerce presale orders.
A presale order can produce a deposit today, a final payment later and a refund in a different settlement batch. Adding deposit-order counts to final-payment-order counts double-counts the same order. Treating all platform-collected funds as money already in the company bank account hides funds still awaiting settlement.
Start with the same selling entity, campaign, order population and cutoff time. Link each deposit, balance payment, refund and platform settlement to its original order. The discussion below concerns a mainland China business selling domestic goods through a platform; the applicable agreement and campaign terms determine the actual payment and refund process.
Build one record around each order
Keep the order and shop identifiers, seller, item and agreed price, deposit paid and refunded, final payment due and paid, shipment or cancellation status, after-sales refunds, settlement batch and bank receipt date. An order value, funds held or collected by a platform, and money received by the seller's bank are distinct measures.
For example, the Taobao/Tmall presale agreement, which also names Tmall Global within its scope, describes a deposit-and-balance arrangement when the presale tool is used. Do not assume another platform, or a listing merely labelled “presale”, uses the same terms. Keep the version and campaign terms that actually applied to the transaction.
Follow one cohort through payment and refund
Assume one shop has 10,000 same-price presale orders. Each has a VAT-inclusive price of RMB 800: an RMB 160 deposit credited against the price and an RMB 640 balance. Every deposit has been paid through the platform. At the cutoff, 7,000 customers have paid the balance, including 500 orders subsequently refunded in full. The other 3,000 balances are still within the agreed payment window. There are no discounts, shipping charges, fees or other refunds in this calculation.
| Measure | Amount |
|---|---|
| Deposits paid | RMB 1.60m |
| Final payments paid | RMB 4.48m |
| Full refunds | RMB 0.40m |
| Net platform collections | RMB 5.68m |
| Unpaid balances | RMB 1.92m |
Deposits are 10,000 × RMB 160; final payments are 7,000 × RMB 640. The 500 full refunds total RMB 0.40 million: RMB 0.08 million of deposits plus RMB 0.32 million of balances. Net platform collections are RMB 1.60m + RMB 4.48m − RMB 0.40m = RMB 5.68m. The unpaid RMB 1.92 million is 3,000 × RMB 640 and is not money received.
A cross-check gives the same result: 6,500 paid orders not refunded represent RMB 5.20 million, and deposits on the 3,000 unpaid-balance orders add RMB 0.48 million. Together they equal RMB 5.68 million. Shipment must be checked separately. These collection figures do not establish recognised revenue or VAT payable.
If the platform has transferred only RMB 5.00 million to the seller's bank in this settlement, investigate the RMB 0.68 million difference against unsettled collections, reserves and adjustments. This example assumes no platform fees. Real records can include fees, different batches and refund timing differences, so do not label the entire gap a fee or a missing payment.
Trace refunds and balances still due
Link every refund to the original order and payment channel. Record separately the deposit, final payment and any returned or cancelled benefit; then match the platform reversal to bank movements. Keep the original payment period when a refund occurs in a later month. Partial refunds, reshipments, split parcels and disputes each need their own evidence.
For balances not paid, distinguish orders still within the payment window from cancelled or expired orders, refund-in-progress items and disputed cases. Do not automatically treat every deposit as earned or assert that no deposit is refundable. The Beijing market regulator's guidance distinguishes the legal character of payments and the causes of non-performance; actual terms, facts and consumer rights matter.
Separate collections, accounting revenue and VAT timing
For an entity applying China Accounting Standards for Business Enterprises, revenue depends on the contract, performance and transfer of control. A Ministry of Finance explanation explains contract liabilities and advance consideration. Other entities should apply the accounting framework that governs them. Neither a deposit nor payment of the balance alone automatically establishes the revenue date.
China's VAT Law, Article 28, and implementing regulations, Article 39, effective from 2026, address tax timing and the meanings of receipt and entitlement to payment; an invoice issued earlier can also affect timing. Preserve contract, payment, shipment, refund and fapiao dates for review under the applicable facts. A bank receipt date alone does not determine the filing period.
CaiGeek is an AI financial assistant for small and medium-sized businesses. Start with one campaign cohort and let the finance team review missing links and unsettled items. Explore available cash and platform reserves or contact CaiGeek about the underlying records.
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