How is ad spend pulled into Mergoio?
Once you have hooked up your TikTok Business Account(s) Mergoio will automatically synchronise with your business center, and GMV max ads accounts. This process can take up to 4 hours to complete, once its done, we will continually synchronise with your account every 4 hours to keep your ad spend up to date.
As it stands, we pull in business center data, and GMV max ads data. We also factor in any voucher/ad credits you have received on business center to the calculation.
We often get a lot of questions regarding how we calculate ad spend because our Mergoio numbers do not match with TikTok's dashboard.
The reason for this is that we add VAT on top of your ad spend, immediately, in real time (according to your Mergoio configuration - see settings page -> configure taxes).
However what you see on the immediate TikTok dashboard is ad spend is exclusive of VAT. TikTok only adds the VAT payable on receipt of invoice or statement. Which means that because Mergoio adds VAT to total spend in real time, it can seem like your ad spend doesn’t match but it’s actually because we’re ahead of the game, and doing our job!
To report accurate profit & loss, we subtract any ad credits, and add the VAT ontop of that figure to get you to what you will actually be charged.
The calculation is as follows:
((Business Center Spend + GMV Max Ads Spend) - Ad Credits) * (1 + (Vat Rate / 100))
### Example Scenario
VAT Rate: 20%
Business Center Spend: £2000
GMV Max Ads Spend: £500
Ad Credits: £300
Total before VAT: £2200
((2000 + 500) - 300) * (1 + (20 / 100)) = £2640
Total including VAT: £2640
Hope this helps, any questions please reach out to james@mergoio.com or reply to this discussion below.