How to Reconcile Your Amazon Seller Statement.
If you’ve ever reviewed an A2X settlement summary, you’ll know Amazon has some very creative ways to charge Amazon sellers money - ShippingChargeback, GiftwrapChargeback, SalesTaxServiceFee - what do all these Amazon fees mean, and how do you reconcile them to the Amazon reports in the Reports > Payments section of Seller Central? Great question! In this blog post, we’re going to reconcile your Amazon reports by working through a complete example that matches the low-level transactions in the settlement report to the corresponding sections in Amazon’s settlement report. Firstly, let’s do a example settlement and A2X summary. In this example we can see a demo seller account with a net payment of $3740.71 - and we can see how Amazon arrives at that total. In A2X, that same settlement is broken down into many more parts, and these are accounted for individually based on how you map the transactions into your chart of accounts. We made a public Google Doc you can see the calculations and full reconciliation here, or view the results below. Each different coloured section in the table below matches an Amazon grouping from their settlement report, to the low-level transactions that comprise that amount. By working through this table you can match up the low-level transaction types, to what Amazon considers the high level categories in their reports. Our general advice is not to necessarily use the same grouping that Amazon does in your financial reports, for example Shipping and ShippingChargeback and Shipping Promo often cancel each other out entirely (for FBA sellers) and so it’d often be overstating your revenue to claim that the Shipping amount Amazon pays you, is yours to keep (when they immediately take it from you via a ChargeBack transaction). Obviously this is the sort of thing you should discuss with your accountant, how you decide to treat transactions like Shipping will have a material impact on the financial reports you get from your accounting system.
Ready to get started?
Save time, work smarter and get reliable Amazon and Shopify financials you can trust, in a matter of minutes.