What happens when you owe Amazon money? Negative balance invoices in Xero
A2X can automatically post your Amazon settlements to Xero. If the settlement covers more than one month, we’ll split the settlement and create 2 invoices, one for each month the settlement covers. In general those invoices will be receivable invoices (i.e Amazon will pay you money). What happens when the fees and costs are higher than the revenue? You technically owe Amazon for that period (even though overall they likely owe you for the total settlement period). Invoices that are payable are called Bills in Xero and are stored in the accounts payable section. You’ll find the draft version of the invoice and can approve it just as you do for receivable invoices. It is possible to reconcile a single Amazon payment to the two amounts even if one is owed to Amazon (the bill and the invoice) and bellow are the steps explaining how to do that. STEP 1 In the reconcile screen in Xero you will see the deposit from Amazon in your bank account pending reconciliation. STEP 2 Click on the little “Find & Match” link in the top right corner to show the full find&match screen. STEP 3 Tick the check box “Show Spent Items” in the match screen so that both invoices and bills will appear and can be selected for reconciling. STEP 4 Select both the invoice and the bill for the settlement, so that the total combined will balance the settlement deposit and Xero will allow you to accept it as reconciled. The steps described above allow you to match the payment from Amazon to both the payable and receivable invoices, so that it overall balances to the deposit total paid into your bank account. Should you need any further assistance, please contact us at: firstname.lastname@example.org
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