Phase 2: sync Etsy payment ledger into expenses (exact fees)

- syncLedgerEntries pulls payment-account ledger entries (chunked by 90d
  over required min_created/max_created), classifies debits into fee
  categories, and inserts them as idempotent expenses (reference
  etsy-ledger-<entry_id>). Amounts are integer minor units -> /100.
- Conservative classifier: only genuine costs become expenses; sale
  credits, disbursements, and refunds are skipped. Unclassified debits
  are reported back so rules can be refined.
- Folded into POST /api/etsy/sync alongside orders; response includes
  ledger result and a legacyEtsyExpenses count (pre-ledger CSV fees).
- DELETE /api/etsy/legacy-fees removes CSV-imported Etsy fee expenses to
  avoid double counting; Settings surfaces the count with a one-click
  remove, plus a list of skipped/unknown ledger charge types.

Co-Authored-By: Claude Fable 5 <noreply@anthropic.com>

client/src/pages/Settings.tsx

@@ -42,6 +42,8 @@ const Settings = () => {
   const [isSyncing, setIsSyncing] = useState(false);
   const [unmatchedItems, setUnmatchedItems] = useState<string[]>([]);
   const [showResolveModal, setShowResolveModal] = useState(false);
+  const [unknownDebits, setUnknownDebits] = useState<string[]>([]);
+  const [legacyEtsyExpenses, setLegacyEtsyExpenses] = useState(0);
 
   useEffect(() => {
     updateStorageSummary();
@@ -122,10 +124,16 @@ const Settings = () => {
   const handleEtsySync = async () => {
     setIsSyncing(true);
     setUnmatchedItems([]);
+    setUnknownDebits([]);
     try {
       const res = await api.post('/etsy/sync');
-      const { created, updated, unmatchedItems: unmatched, receiptsSeen } = res.data;
+      const { created, updated, unmatchedItems: unmatched, receiptsSeen, ledger, legacyEtsyExpenses: legacy } = res.data;
       toast.success(`Synced ${receiptsSeen} Etsy orders: ${created} new, ${updated} updated`);
+      if (ledger) {
+        toast.success(`Fees from Etsy ledger: ${ledger.feesCreated} new expense(s) imported`);
+        setUnknownDebits(ledger.unknownDebits || []);
+      }
+      setLegacyEtsyExpenses(legacy || 0);
       if (unmatched?.length > 0) {
         setUnmatchedItems(unmatched);
       }
@@ -140,6 +148,20 @@ const Settings = () => {
     }
   };
 
+  const handleRemoveLegacyFees = async () => {
+    if (!window.confirm(
+      'Remove Etsy fee expenses that were imported from the statement CSV? ' +
+      'The Etsy ledger sync replaces them. This avoids double-counting fees.'
+    )) return;
+    try {
+      const res = await api.delete('/etsy/legacy-fees');
+      toast.success(`Removed ${res.data.deleted} CSV-imported Etsy fee expense(s)`);
+      setLegacyEtsyExpenses(0);
+    } catch {
+      toast.error('Failed to remove legacy Etsy fees');
+    }
+  };
+
   const handleEtsyDisconnect = async () => {
     if (!window.confirm('Disconnect your Etsy shop? Synced data stays; only the connection is removed.')) return;
     try {
@@ -256,6 +278,45 @@ const Settings = () => {
                 </p>
               </div>
             )}
+
+            {legacyEtsyExpenses > 0 && (
+              <div className="bg-amber-50 border border-amber-200 rounded-lg p-4">
+                <div className="flex items-start justify-between gap-4">
+                  <div>
+                    <p className="text-amber-800 font-medium text-sm">
+                      {legacyEtsyExpenses} Etsy fee expense(s) from the old statement-CSV import are still present.
+                    </p>
+                    <p className="text-amber-700 text-xs mt-1">
+                      The ledger sync now pulls fees directly from Etsy. Remove the old CSV-imported
+                      ones so fees aren't counted twice. (You can stop importing the Etsy statement CSV.)
+                    </p>
+                  </div>
+                  <button
+                    onClick={handleRemoveLegacyFees}
+                    className="flex items-center gap-2 px-3 py-2 bg-amber-600 text-white rounded-lg hover:bg-amber-700 text-sm whitespace-nowrap"
+                  >
+                    <Trash2 className="w-4 h-4" />
+                    Remove Old Fees
+                  </button>
+                </div>
+              </div>
+            )}
+
+            {unknownDebits.length > 0 && (
+              <div className="bg-gray-50 border border-gray-200 rounded-lg p-4">
+                <p className="text-gray-700 font-medium text-sm mb-2">
+                  {unknownDebits.length} ledger charge type(s) weren't auto-categorised as fees and were skipped:
+                </p>
+                <ul className="text-gray-600 text-sm list-disc list-inside space-y-1">
+                  {unknownDebits.map((d, idx) => (
+                    <li key={idx}>{d}</li>
+                  ))}
+                </ul>
+                <p className="text-gray-500 text-xs mt-2">
+                  If any of these are real business costs, let me know and I'll add them to the fee rules.
+                </p>
+              </div>
+            )}
           </div>
         ) : (
           <div className="space-y-4">

server/src/routes/etsy.ts

@@ -3,12 +3,14 @@ import crypto from 'crypto';
 import { authenticate, AuthRequest } from '../middleware/authenticate';
 import EtsyConnection from '../models/EtsyConnection';
 import EtsySettings from '../models/EtsySettings';
+import Expense from '../models/Expense';
 import {
   buildAuthUrl,
   exchangeCode,
   fetchIdentity,
   generatePkce,
   syncReceipts,
+  syncLedgerEntries,
 } from '../services/etsyApi';
 
 const router = Router();
@@ -213,14 +215,41 @@ router.post('/sync', authenticate, async (req: AuthRequest, res: Response) => {
     const config = await loadConfig(req.userId!);
     if (!config) return res.status(400).json({ message: 'Etsy API key is not configured' });
 
-    const result = await syncReceipts(toCredentials(config), connection);
-    res.json(result);
+    const creds = toCredentials(config);
+    const result = await syncReceipts(creds, connection);
+
+    // Also pull the payment-account ledger into expenses (exact fees from Etsy)
+    const ledger = await syncLedgerEntries(creds, connection);
+
+    // Warn if pre-ledger CSV-imported Etsy fees still exist (would double-count)
+    const legacyEtsyExpenses = await Expense.countDocuments({
+      userId: req.userId,
+      vendor: 'Etsy',
+      reference: { $not: /^etsy-ledger-/ },
+    });
+
+    res.json({ ...result, ledger, legacyEtsyExpenses });
   } catch (err: any) {
     console.error('Etsy sync failed:', err);
     res.status(500).json({ message: err.message || 'Etsy sync failed' });
   }
 });
 
+// Remove fee expenses imported from the statement CSV before ledger sync,
+// so the ledger becomes the single source of Etsy fees (no double counting)
+router.delete('/legacy-fees', authenticate, async (req: AuthRequest, res: Response) => {
+  try {
+    const result = await Expense.deleteMany({
+      userId: req.userId,
+      vendor: 'Etsy',
+      reference: { $not: /^etsy-ledger-/ },
+    });
+    res.json({ deleted: result.deletedCount });
+  } catch (err) {
+    res.status(500).json({ message: 'Failed to remove legacy Etsy fees', error: err });
+  }
+});
+
 router.delete('/connection', authenticate, async (req: AuthRequest, res: Response) => {
   try {
     await EtsyConnection.findOneAndDelete({ userId: req.userId });

server/src/services/etsyApi.ts

@@ -2,6 +2,7 @@ import crypto from 'crypto';
 import { IEtsyConnection } from '../models/EtsyConnection';
 import Order from '../models/Order';
 import Product, { IProduct } from '../models/Product';
+import Expense from '../models/Expense';
 
 const ETSY_API_BASE = 'https://api.etsy.com/v3';
 const ETSY_TOKEN_URL = 'https://api.etsy.com/v3/public/oauth/token';
@@ -319,3 +320,134 @@ const upsertOrderFromReceipt = async (
     result.created++;
   }
 };
+
+// ---------- Payment ledger → Expense sync ----------
+
+export interface LedgerSyncResult {
+  feesCreated: number;
+  feesDuplicate: number;
+  feesByCategory: Record<string, number>;
+  entriesSeen: number;
+  // Debit entries we couldn't confidently classify as a fee — surfaced so the
+  // category rules can be refined rather than silently miscategorising money
+  unknownDebits: string[];
+}
+
+// Etsy ledger amounts are integers in the entry currency's minor unit (cents);
+// there is no per-entry divisor, so /100 (all Etsy currencies are 2-decimal)
+const ledgerAmount = (entry: any): number => (entry.amount || 0) / 100;
+
+// Map a debit ledger entry to an expense category, or null to skip it.
+// Conservative: only genuine business costs become expenses. Credits (sales),
+// disbursements to bank, and refunds (revenue reversals) are never expenses.
+export const classifyLedgerEntry = (entry: any): string | null => {
+  if ((entry.amount || 0) >= 0) return null; // credits: sale payments, misc credits
+
+  const text = `${entry.description || ''} ${entry.ledger_type || ''} ${entry.reference_type || ''}`.toLowerCase();
+
+  // Transfers and revenue reversals are not expenses
+  if (/disburse|deposit|withdraw|payout/.test(text)) return null;
+  if (/refund|reversal|return/.test(text)) return null;
+
+  if (/listing/.test(text)) return 'Listing Fees';
+  if (/transaction/.test(text)) return 'Transaction Fees';
+  if (/processing|payment fee/.test(text)) return 'Payment Processing Fees';
+  if (/ads|advertis|marketing|offsite/.test(text)) return 'Marketing & Advertising';
+  if (/shipping|postage|label/.test(text)) return 'Shipping & Postage';
+  if (/vat|gst|\btax\b/.test(text)) return 'Taxes & GST';
+  if (/subscription|etsy plus/.test(text)) return 'Subscriptions';
+  if (/regulatory|operating fee|fee|bill/.test(text)) return 'Other Etsy Fees';
+
+  return null; // unknown debit — reported, not guessed
+};
+
+export const syncLedgerEntries = async (
+  creds: EtsyCredentials,
+  connection: IEtsyConnection,
+  // Default lookback covers the shop's full selling history; chunked to avoid
+  // any range limits on the endpoint
+  startDate: Date = new Date(Date.now() - 5 * 365 * 24 * 60 * 60 * 1000)
+): Promise<LedgerSyncResult> => {
+  const result: LedgerSyncResult = {
+    feesCreated: 0,
+    feesDuplicate: 0,
+    feesByCategory: {},
+    entriesSeen: 0,
+    unknownDebits: [],
+  };
+
+  const windowSeconds = 90 * 24 * 60 * 60;
+  const nowSec = Math.floor(Date.now() / 1000);
+  let windowStart = Math.floor(startDate.getTime() / 1000);
+
+  const toCreate: any[] = [];
+
+  while (windowStart < nowSec) {
+    const windowEnd = Math.min(windowStart + windowSeconds, nowSec);
+    let offset = 0;
+
+    while (true) {
+      const page = await etsyGet(
+        creds,
+        connection,
+        `/application/shops/${connection.shopId}/payment-account/ledger-entries` +
+          `?min_created=${windowStart}&max_created=${windowEnd}&limit=100&offset=${offset}`
+      );
+      const entries: any[] = page.results || [];
+      if (entries.length === 0) break;
+
+      for (const entry of entries) {
+        result.entriesSeen++;
+        const category = classifyLedgerEntry(entry);
+        if (!category) {
+          // Collect unclassified debits for reporting (capped)
+          if ((entry.amount || 0) < 0 && result.unknownDebits.length < 25) {
+            const desc = String(entry.description || entry.ledger_type || 'unknown').trim();
+            if (!result.unknownDebits.includes(desc)) result.unknownDebits.push(desc);
+          }
+          continue;
+        }
+
+        const when = new Date((entry.created_timestamp || entry.create_date) * 1000);
+        toCreate.push({
+          category,
+          description: String(entry.description || category),
+          amount: Math.abs(ledgerAmount(entry)),
+          date: when,
+          taxDeductible: true,
+          vendor: 'Etsy',
+          // Stable per-entry reference makes re-syncs idempotent via the unique
+          // {reference, vendor, amount, date} index
+          reference: `etsy-ledger-${entry.entry_id}`,
+          notes: entry.reference_id ? `Etsy ${entry.reference_type || 'ref'} ${entry.reference_id}` : undefined,
+          userId: connection.userId,
+        });
+        result.feesByCategory[category] = (result.feesByCategory[category] || 0) + 1;
+      }
+
+      offset += entries.length;
+      if (offset >= (page.count || 0)) break;
+    }
+
+    windowStart = windowEnd;
+  }
+
+  // Idempotent insert: the unique index rejects entries already imported
+  if (toCreate.length > 0) {
+    try {
+      const inserted = await Expense.insertMany(toCreate, { ordered: false, rawResult: true } as any);
+      result.feesCreated = (inserted as any).insertedCount ?? toCreate.length;
+    } catch (bulkError: any) {
+      if (bulkError.writeErrors) {
+        for (const e of bulkError.writeErrors) {
+          if (e.code === 11000) result.feesDuplicate++;
+        }
+        result.feesCreated = bulkError.result?.insertedCount ?? (toCreate.length - bulkError.writeErrors.length);
+      } else {
+        throw bulkError;
+      }
+    }
+  }
+
+  return result;
+};