Shipping label expenses on Etsy are recorded based on the date you purchase the labels, not the date the order was placed. This might seem a little confusing at first, so let's break it down with an example.

Example:

Let’s say you receive an order on Monday but don’t purchase the shipping label until Wednesday. The shipping label expense will be recorded on Wednesday, the day you buy the label, rather than on Monday, when the order was placed.

Why Are Expenses Assigned This Way?

The reason for this is to keep your accounting aligned with when the expense is actually incurred. In this case, you’re only spending money on shipping when you buy the label — not when the order comes in. By recording the expense on the day you purchase the shipping label, Etsy ensures your costs are accurately tracked to reflect your actual spending.

How Does This Affect Your Reporting?

When you’re reviewing your shipping expenses, remember that they will appear on the day you purchased the labels. If you bought shipping labels for multiple orders on a single day, you’ll see those expenses bundled together under that purchase date, rather than scattered across the dates the orders were placed.

This system helps to avoid confusion when managing your shipping costs, ensuring that the dates in your financial records reflect when you actually spent money.