Amazon settlements are paid every 1-2 weeks (generally) but often will cross a month boundary.
For example, one settlement may start on April 18th and run through to May 2nd. A2X will split the settlement data according to which month the sales or fees actually occurred. This will ensure that your financial accounts properly record the transactions in the month they occurred. This will also make months more comparable to previous months and years for your reporting.
In QuickBooks when we split the settlement entry we use a 'Carried Forward Balance' account to carry over the pending Amazon settlement balance. This then allows you to simply reconcile the deposit from Amazon to a single journal entry only reflecting the total final settlement.
A visual example of this is below:
Our example settlement period starts on April 18th and runs through to May 2nd.
You will see below that A2X has split the settlement so that the correct settlement data is allocated to April and the correct settlement data is allocated to May. In this case the split would be as follows:
The April journal would cover from April 18th through to April 30th
The May journal would cover the data from May 1st through to May 2nd.
Once this has been sent from A2X to QuickBooks you will see the two journals contain a Carried Forward Balance amount.
The April entry is a Debit to the Carried Forward Balance account and the May entry is a Credit to the carried forward balance account. So effectively within the one settlement that has been split by month we are simply debiting the carried forward balance account in one month and then crediting the same account for the same amount in the very next month. This allows you to reconcile to the one journal only rather than try to match the deposit to multiple entries.