How to Set Up Your Naqood Account for Amazon, Noon, and Other Third-Party Marketplaces – A Step-by-Step Guide (2025)

Managing Marketplace Sales in Naqood

For businesses selling on Amazon, Noon, or other third-party marketplaces in the UAE, accurate accounting and invoicing are essential. Properly setting up your Naqood account ensures seamless financial tracking, correct VAT reporting, and efficient invoice generation.

This guide provides a structured step-by-step process for setting up Naqood to handle:

1. Configuring the Chart of Accounts for marketplace transactions

2. Creating products and services for invoicing third-party marketplaces

3. Generating monthly invoices to ensure accurate financial reporting

Following this guide will help businesses streamline their accounting processes and maintain compliance with financial regulations.

Understanding Marketplace Transactions and Accounting Needs

Selling through third-party marketplaces involves several types of transactions that must be accounted for correctly. In Naqood, the following key financial activities must be tracked on a monthly basis:

• Orders (Sales): Revenue from goods sold through the marketplace

• Refunds: Returns processed, reducing total sales revenue

• Reimbursements: Compensation received for refunded or lost items

• Adjustments: Payments received for item damages or other marketplace compensations

• Delivery Charges: Expenses incurred for shipping and logistics

Setting up the Chart of Accounts and defining relevant products and services in Naqood ensures that these transactions are correctly recorded and reflected in financial reports.

Step 1: Configuring the Chart of Accounts

Naqood’s default Chart of Accounts includes the following accounts:

• 1010 – Sales of Goods and Services

• 1340 – Delivery Charges

However, additional accounts must be manually created to track refunds, reimbursements, and adjustments.

Creating New Accounts in Naqood

1. Navigate to Settings

2. Select Accounts

3. Click Create New Account

Account 1: Refund

• Account Name: Refund

• Account Number: 1030 (or an alternative based on preference)

• VAT Treatment: If VAT is enabled in company settings, it will be automatically applied.

• VAT Code: S – Sales Standard VAT (ensures that VAT is adjusted when processing refunds)

Account 2: Reimbursement

• Account Name: Reimbursement

• Account Number: 1031

• VAT Treatment: If VAT is enabled, it will apply automatically.

• VAT Code: S – Sales Standard VAT

Account 3: Adjustment

• Account Name: Adjustment

• Account Number: 1032

• VAT Treatment: VAT applies automatically if enabled.

• VAT Code: S – Sales Standard VAT

Once these accounts have been created, the next step is to set up products and services for invoicing.

Step 2: Creating Products and Services for Marketplace Invoicing

To invoice Amazon, Noon, and other third-party marketplaces effectively, businesses must set up specific products and services that match the transactions recorded in the Chart of Accounts.

Creating a New Product in Naqood

1. Navigate to Products & Services

2. Click Add Product

3. Enter the required details for each product

The following five products must be created to align with marketplace sales and expenses.

Product 1: Order (Sale)

• Product Name: Order

• Product Code: (Optional)

• Quantity: 1

• Unit: Month (as invoicing occurs monthly)

• Unit Price: 1 (default value, updated during invoicing)

• Account: 1010 – Sales of Goods and Services

Product 2: Refund

• Product Name: Refund

• Product Code: (Optional)

• Quantity: -1 (negative value to deduct from total sales)

• Unit: Month

• Unit Price: 1 (updated when issuing an invoice)

• Account: 1030 – Refund

Product 3: Reimbursement

• Product Name: Reimbursement

• Product Code: (Optional)

• Quantity: -1 (to be deducted from total sales)

• Unit: Month

• Unit Price: 1 (updated on invoice)

• Account: 1031 – Reimbursement

Product 4: Adjustment

• Product Name: Adjustment

• Product Code: (Optional)

• Quantity: -1 (negative unless the adjustment is in favor of the seller)

• Unit: Month

• Unit Price: 1 (adjusted at invoicing stage)

• Account: 1032 – Adjustment

Product 5: Delivery Charges

• Product Name: Delivery Charges

• Product Code: (Optional)

• Quantity: 1

• Unit: Month

• Unit Price: 1 (updated when invoicing)

• Account: 1340 – Delivery Charges (Expense)

With the accounts and products correctly configured, businesses are now ready to generate invoices for marketplace transactions.

Step 3: Generating an Invoice for Marketplace Sales

Once the Chart of Accounts and products are set up, the final step is to create monthly invoices for third-party marketplace sales.

Creating an Invoice in Naqood

1. Navigate to Invoices

2. Click Add Invoice

3. Select the customer (Amazon, Noon, or another reseller)

4. Update the invoice title to include the billing period (e.g., "Invoice for March 2025") or include a PO number if required by the reseller

5. Add the five products created earlier and update the unit price to reflect actual sales figures for the billing period

Once the invoice is generated and reviewed, it can be sent to the respective marketplace for processing.

Benefits of Setting Up Naqood for Marketplace Sales

By properly configuring Naqood, businesses selling through third-party marketplaces gain several advantages:

• Accurate financial tracking of marketplace transactions

• Automated VAT calculations for compliance with UAE tax regulations

• Efficient invoicing with pre-configured accounts and products

• Reduced manual errors through structured financial reporting

Implementing this setup allows businesses to streamline accounting processes, ensuring that all transactions are recorded correctly and invoices are issued without complications.

Next Steps

Now that the setup is complete, businesses can start generating invoices for Amazon, Noon, and other third-party marketplaces with minimal effort.

To get started:

1. Set up the Chart of Accounts following the steps outlined

2. Create the necessary products and services

3. Generate the first marketplace invoice in Naqood

For further assistance, businesses can refer to Naqood’s support resources or consult with an accounting professional to ensure compliance with financial regulations.