Working with Amazon Seller Central is a progressive opportunity for running businesses. But one important thing that every seller needs to consider is the overall cost explanation over the platform. Recording the entry manually requires a proper understanding of manual reconciliation methods. Amazon pays its sellers every two weeks, and the revenue is much more than the deposit made to the account.
It is quite essential for the sellers over Amazon to know this aspect for creating the settlement reports without much hassle. Follow this article to know the process to reconcile the Amazon settlement reports for an accurate income statement.
What Information Does The Settlement Report Consist Of?
The settlement report that you will reconcile will consist of all the deductions that are made by Amazon. The deposit you get in your account as the payment is the net value post-deductions. The settlement reports consist of clear detail on the deduction aspects. It consists of:
1. Amazon sales commission
4. Goods and Service tax (GST)
5. Monthly subscription
6. Advertising fees
7. Shipping fees
8. FBA fees
9. Sales tax facilitator fees
You can check your settlement report from your seller site by opening the Reports tab. Select Payments from the menu, and you will get your settlement report.
Procedure To Reconcile Amazon Settlement Deposit
Here is the step-by-step procedure to get the reconciling done for the Amazon settlement deposits.
Step 1: Wait For The Settlement Deposit
As stated above, Amazon pays the sellers every two weeks. So, wait for the settlement deposit, after which you can go ahead with the process of reconciling. Most of the suppliers or business owners integrate their bank accounts with the accounting system of Amazon to start the process right away.
Step 2: Get The Amazon Settlement Report
Find the reports section under your seller dashboard and go to payments to view your settlement report. Select the report that you want to reconcile, then save the statement as a PDF.
Step 3: Determine The Gross Settlement Deposit
Firstly you need to make sure that you have added all the accounts onto the accounting system of Amazon to continue with the reconciling process. You cannot continue with this process if you have not done it yet.
Look for the deposited amount information in Zero and click on Add Details. After this, you can startto enter the accounts along with the respective amounts. While doing this, you need to make sure that the total amount equals your net deposit. The main aim of the sellers here must be to add the revenue amounts to the related costs for making the total amount equal to the net deposited amount. Once you are done with that, you can save the transaction.
Step 4: Check The Income Statement
After you have broken down the costs and income in the system, check on the income statement for the results. You can check your income statement in Xero. Check for the right format along with the placement of amounts appropriately.
These are the steps that you need to follow for reconciling Amazon Seller payments. You need to understand the process well as for big businesses that involve a lot of sales, deposits, or expenses, the process becomes a bit complex. So, get well versed and implement the steps accordingly.