When you first go to set up your Accounts and Taxes mapping, you will see that A2X can create a number of generic default accounts for you to map transactions to. You'll see for example "Create account Amazon FBA Fees".
If you select this option, it means that A2X will automatically connect to your accounting system and create an expense account called 'Amazon FBA Fees' and then map all such fees into that expense account in your ledger.
A2X interprets your settlement data from Amazon and categorises the transactions into these higher level transaction types on the left, such as Adjustments and Amazon Delivery and Transport.
Because A2X is connected to your accounting software, it is importing all your chart of accounts. For any transaction type you can select your own account, instead of our generic default option. For example instead of using an expense called 'Amazon FBA Fees' you might choose an existing account in your ledger called 'shipping costs'.
If A2X detects an account that already matches the default, then it will be pre-selected, for example in the situation above, there is already an account called Sales, A2X will not offer to create another one.
A2X uses account codes that indicate the accounts were created by A2X such as: "a2xship" and "a2xres". This will differentiate them from the default codes which are often numeric sequences such as 400, 401 etc.
The generic accounts created by A2X will assign your transactions in account types that will generate a reasonable set of financial reports without needing to spend a lot of time on the account mapping process. In general as your business grows and you have input from a financial adviser, you will likely want to customise and tweak the settings to suit your financial reporting requirements. The default accounts are intended as a quick and easy way to get started.
More about the generic accounts created by A2X
So what are these generic accounts and what type of accounts are they? The names of the types in Xero and in QuickBooks are slightly different but are, in accounting terms, the same.
Here is a table showing the account types for each accounting solution so you can find them in your reports:
Expenses and Sales or Revenue or Income accounts will be on your Income Statements. Current assets and current liabilities will be on your Balance Sheets.
To get started with experiencing how easy it can be to do your Amazon accounting in A2X, you can simply click Save mappings at the bottom of Accounts and Taxes.
This creates the accounts in Xero or QuickBooks Online and also maps these new accounts to your settlement transactions. Which means, you are ready to send your first settlement!