Amazon Bookkeeping: Settlements, Reserves, Fees & Chargebacks
Map Amazon settlements correctly, gross sales, fees, refunds/chargebacks, reserves/releases → net deposit, and reconcile to bank. CPA-reviewed ecommerce bookkeeping.
If Amazon deposits don’t reconcile, your channel margin is fiction. Our Amazon bookkeeping flow converts every settlement into a clear bridge, gross sales – platform fees – FBA/fulfillment – refunds/chargebacks ± reserves/releases = net deposit, and ties the result to your bank statement each month. We normalize SKUs, map promotions/discounts, separate fees and FBA costs, and decide item-level or periodic COGS so inventory aligns with revenue timing. We also track A-to-Z claims, chargebacks, and reserves on dedicated accounts, then release them when Amazon pays out. Each month we reconcile bank/credit/loan accounts to statements, validate settlement totals, post any FX remeasurement entries, and deliver a CPA-reviewed reporting pack (P&L by channel, Balance Sheet, cash highlights) with a period-lock recommendation, so your Amazon margins are accurate, defensible, and lender-ready.
The Amazon Settlement Mapping You Actually Need
Gross sales (items × quantity) mapped to Channel Revenue – Amazon - Promotions/discounts mapped to Contra Revenue – Amazon Discounts
- Refunds mapped to Refunds/Returns – Amazon
- Chargebacks/claims mapped to Chargebacks Expense (track by reason code)
- Platform fees (selling fees, referral fees) mapped to Amazon Fees Expense
- FBA/fulfillment (pick/pack, storage, shipping) mapped to FBA Fulfillment Expense
- Reserves and reserve releases tracked on balance-sheet accounts (Amazon Reserve, Amazon Reserve Releases)
- Sales tax handled under marketplace-facilitator logic (do not double-book tax you don’t remit)
- Net deposit reconciled to the bank (one settlement = one bank line or known composite if Amazon batches)
Inventory & COGS Timing That Won’t Spike
- Choose item-level COGS (perpetual) or periodic COGS (from IMS/FBA export) and stick to it
- Capitalize landed cost (freight/duty) into inventory or apply a monthly capitalization entry with schedules
- Tie Inventory Asset to FBA/IMS valuation; tie COGS to the sales period (no “catch-up” dump into one month)
Sales Tax on Amazon
- Amazon generally remits marketplace-facilitator tax for its own transactions, don’t record that as your liability/revenue
- For non-facilitator or non-Amazon channels, record tax collected to Sales Tax Payable and reconcile to returns
- Keep a jurisdiction roll-forward for audit readiness
Multi-Currency & FX
- Reconcile settlements in settlement currency; recognize FX gain/loss on conversion
- Month-end FX remeasurement with a CPA-reviewed entry and memo that references Amazon payout IDs
Monthly Close Checklist (Amazon Channel)
- Import settlements and apply the mapping table above
- Reconcile each settlement to a bank line; Undeposited Funds = 0
- Validate platform fees/FBA costs against settlement detail totals
- Post inventory/COGS timing entries and landed-cost capitalization (if used)
- Book reserve movements and releases on the balance sheet
- CPA review → variance note → period-lock recommendation
Reports You’ll Trust
- Amazon Channel P&L with a gross→net bridge (sales to net deposit)
- Fee & FBA Cost dashboards with trend lines
- Inventory Valuation vs Inventory Asset reconciliation summary
- Reserve Roll-Forward with releases tied to payout IDs
Frequently Asked Questions
We separate platform fees (selling/referral) from FBA/fulfillment costs and validate totals against settlement reports each close.
Reserves accrue to Amazon Reserve (balance sheet) and are released to income/expense lines when the payout lands; each movement references the settlement ID.
Usually SKU mapping inconsistencies, periodic COGS not aligned to the sales period, or reserves booked as expenses. We standardize mapping, align timing, and isolate reserves.
Yes, multi-channel mapping with a single close calendar. Each channel has its own gross→net bridge and ties back to consolidated financials.