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Amazon Deferred Transactions (DD+7): Accounting Challenges And The A2X Fix

Written by: Geoff Gualano

August 18, 2025 • 3 min read

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Amazon DD+7 (Deferred Transactions): Accounting Challenges and A2X Workarounds

If your Amazon sales look off on the first of every month, it’s likely due to Amazon’s Delivery Date + 7 policy (DD+7).

For some accounts, Amazon now keeps funds on ice for seven days after a package is marked delivered. The same thing happens when a B2B customer buys on payment terms. Those “Deferred Transactions” don’t appear in the settlement file until the cash actually moves. Great for Amazon’s risk management, but unfortunate for your accrual‑based accounting.

Good news: A2X is rolling out Monthly Adjustments for Amazon Deferred Transactions. It’s a new A2X workflow that moves every held‑back sale along with corresponding fees, taxes, and Cost of Goods Sold (COGS) into the month you earned it, without touching the settlement entry you use to match the bank feed, giving you accurate accrual accounting.

This post will give you an overview of the Amazon DD+7 policy and corresponding deferred transactions, why it matters to your accounting, and how to fix the issue with A2X.

What is Amazon DD+7 and Deferred Transactions?

Amazon’s DD+7 policy means that Amazon now holds funds for 7 days after delivery before releasing payment to sellers. This is a major change from the previous system, where funds were typically included in settlements shortly after shipment.

  • Before DD+7: Sales were included in Amazon payouts shortly after shipment.
  • After DD+7: Even after an order is delivered, Amazon holds the payment for an additional 7 days before it is included in a settlement.

Example of a DD+7 transaction:

  • Order placed: November 1
  • Order delivered: November 3
  • Payment released: November 10 (Delivery + 7 days)

This means sellers have delayed access to funds and their sales figures in Amazon reports may understate actual revenue for the period.

Key points to note:

  • Amazon may hold back 20-25% of your revenue in any given period due to DD+7.
  • These Deferred Transactions do not appear in normal Amazon reports until released.
  • Third-party tools like A2X cannot see Deferred Transactions until they are included in settlements.

Why you need the A2X fix for Amazon Deferred Transactions

  • Revenue timing matters. Boards, investors, and lenders judge performance on when you earn revenue, not when Amazon pays you.
  • Margins need to line up. If COGS post weeks after inventory ships, your gross profit for the original month is wrong.
  • Manual workarounds hurt. Journal‑entry hacks and spreadsheets often waste hours and don’t guarantee accuracy.

We’ve seen sellers and accounting professionals wrestle with deferred transactions this ever since Amazon introduced deferred transactions and expanded the DD + 7 policy. Rather than patching the settlement importer (which would upset cash matching), we built a separate, accrual adjustment that fixes revenue, fees, and COGS timing while leaving your match-to-cash settlements untouched.

How the new A2X adjustment for Amazon Deferred Transactions works

  1. Settlements post as usual. Your day‑to‑day A2X flow stays the same.
  2. One journal per marketplace at month‑end. A2X accrues Deferred Transactions during the period and reverses any Amazon orders released in the following period
  3. Net impact lands in an asset account you choose for Amazon Deferred Transactions. Your Profit and Loss Statement (P&L) and Balance Sheet stay neat.
  4. COGS lines travel with the sale. Inventory costs hit in the same month as the revenue they generate.

That’s it. No duplicate revenue. Just clean accrual accounting. Learn more about Monthly Adjustments for Amazon Deferred Transactions.

A2X helps you say goodbye to Amazon Deferred Transaction accounting headaches

A2X’s monthly adjustments for Amazon Deferred Transactions let you keep perfect cash reconciliation and accurate accruals. Follow this step-by-step process to flip the switch before your next close and see the difference. If you have questions, our team is only a chat away.

Frequently Asked Questions

FAQs about Amazon Deferred Transactions (DD+7) and A2X's solution

DD+7 means Amazon holds the payment for seven days after an order is marked delivered. Those sales – along with the related fees and taxes – stay “on ice” as Deferred Transactions and don’t show up in your settlement file until Amazon releases the cash.
Because the cash isn’t released until seven days after delivery, as much as 20-25 % of your revenue can slip into the following month. If you run accrual-based accounting, that mismatch pushes sales and Cost of Goods Sold (COGS) into different periods, making margins and month-end KPIs unreliable.
A2X’s Monthly Adjustments for Amazon Deferred Transactions move every held-back sale – plus its matching fees, taxes and COGS – into the month you earned it. The settlement entry you use for bank-feed matching is left untouched, so you keep perfect cash reconciliation and accurate accruals.
Not at all – your regular settlements still post exactly as Amazon sends them and continue to match the deposit in your bank feed. A2X simply adds one month-end adjustment per marketplace that accrues orders still in Deferred status, reverses orders that moved from Deferred → Released during the same month, and posts the net effect to the Amazon Deferred Transactions asset account you’ve mapped. The adjustment is created only after all settlement periods for that month have closed (it usually appears within about four hours) and, while auto-posting is on the roadmap, you’ll click Post manually for now. All lines inherit your existing mapping rules, so nothing doubles up and your cash-to-books reconciliation stays pristine.
Go to Settings → Amazon Deferred Transactions, pick your starting month, select the asset account for each marketplace, and click Enable. A2X will start accruing your Deferred Transactions from the next close – no spreadsheets or journal-entry hacks required.
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Geoff Gualano

ABOUT THE AUTHOR

Geoff Gualano

Geoffrey Gualano is a marketing leader with a decade of experience building B2B SaaS brands. At A2X, he leads a team of expert marketers to help ecommerce businesses, their accountants, and bookkeepers save hours while increasing the accuracy of their books with accounting automation technology.