Before you begin
We are very excited to bring QuickBooks Online connectivity to A2X. QuickBooks Online USA, Canada, UK and Australia are all supported in A2X and you can connect to any Amazon marketplace. If you experience any trouble with the connection or would like help getting set up please contact us. The steps below will walk you through getting started with QuickBooks Online and A2X.
Step 1: Start the connection.
You will need to log in to A2X first, before connecting to QuickBooks. You should connect to Amazon - you can do that before or after connecting to QuickBooks. When you are ready to connect, begin by clicking the QuickBooks button and then click through on the connect screen (shown below).
On the connection screen, connect A2X to QuickBooks by clicking the 'Connect to QuickBooks' button on the right (shown below).
Step 2: Get connected to QuickBooks
After you click 'Connect to QuickBooks', a new window will open to the QuickBooks website, where you need to log in to QuickBooks.
You will then need to tell A2X which company you would like to connect to (if you just have the one company you will only have the one option - if you have multiple companies you will need to select the correct company to link A2X to).
You will need to click the 'Authorize' button to grant A2X permission.
And lastly you should see the connection being made before you are redirected back to A2X and the connection window will close automatically.
Once you grant A2X permission, you'll be redirected back to A2X. You should see the QuickBooks connection settings screen below:
Step 3: Set Bank Accounts
Once you have been redirected back to the A2X site you will need to select the bank/credit card accounts that you use with Amazon.
You will need to map to the bank account that Amazon deposits settlements into and also to the credit card account that is used to pay amounts owed to Amazon.
A note about Selling in Multiple Currencies with QuickBooks
If you sell on Amazon in multiple currencies - for example Amazon.com in USD and Amazon.ca in CAD, or Amazon.co.uk in GBP and Amazon.de in EUR - then you will need to set up multiple deposit accounts for QuickBooks in your A2X settings. There are two ways to do this:
- If you use Amazon's automatic currency conversion feature, then your foreign currency payments from Amazon will be converted before they are paid to your account. For example your CAD payments are paid to your USD account in USD. In this scenario you will need to create a foreign currency clearing account that receives the payments in the foreign currency, and then 'transfer' from that account into your bank when reconciling.
- If you receive the foreign currency directly into a foreign currency account (in the correct currency) then you would select the account for deposits in A2X settings.
For a complete guide to handling multiple currency deposits from Amazon please see our QuickBooks multi-currency guide.
A note about tax rates in QuickBooks
A2X currently requires at least one QuickBooks Tax rate to be configured - it can be simply 'no tax' which means your taxes will be calculated outside of QuickBooks (in the case of US merchants, that might mean using a tool like TaxJar or Taxify to help). For US sellers this is the most typical scenario as Amazon.com will calculate sales tax on your behalf.
You will see in our example below there is currently one sales tax rate defined within this QuickBooks account. There can be as many pre-set tax rates as you need and they can be created in QuickBooks by selecting the 'Taxes' menu on the left side of the QuickBooks screen and then selecting 'New'. We recommend that you consult with your accountant or tax adviser regarding the applicable tax codes/rates for your state, country or business structure.
Configure A2X and Send data to QuickBooks Online
Now we can configure A2X with accounts and taxes for each transaction type and send the financial data to QuickBooks.
Step 5: Review your account and tax rate mappings on the 'Accounts and Taxes' screen
You'll need to select accounts from QBO and tax rates for each type of Amazon transaction. The easiest way to do this is to use the Mapping screen called 'Accounts and Taxes'. To begin with or during testing you might like to chose fairly broad categories, but when you are setting up your account for more detailed accounting, you will want to choose more granular account mappings, to give you better data in your financial reporting.
To review, enter or edit your account and tax rate mappings click 'Accounts and Taxes' at the top of your A2X screen.
Step 6: View your first A2X settlement and send the data to QuickBooks
Click 'Settlements' at the top of your A2X screen to review the settlements that are ready to be posted to QuickBooks and then click 'Review'.
You should see the invoice details for the settlement period, you may see one or two invoices, depending on whether the settlement periods covers 1 or 2 months of sales and fees.
You can review the details on the invoice by clicking 'Show Invoice Detail'. Once your happy with the invoice, send to QuickBooks by pressing the 'Send invoice to QuickBooks' button.
Step 7: Review the A2X journal entry in QuickBooks
In QuickBooks, you will see one (or two) journal entries have been created by A2X in QuickBooks. Each journal entry will have a date (the date the transactions are applied - which is important if the settlement covers more than one month) and the list of debit and credit transactions that apply in that period. The final entry on the journal will be the deposit into the nominated bank account (or withdraw if you owe Amazon money for that period).
They should look like this example:
Because the journal entry includes the debit or credit to the bank account, you can then reconcile the deposits from Amazon to the journals like so:
You will see in this example, QuickBooks has automatically matched the incoming deposit to the Journal entry created by A2X. In the event that QuickBooks couldn't match it because there are maybe two journals to match to the one deposit then you can select 'Find other matching transactions'.
Now all of the sales and fees Amazon paid/deducted have been properly accounted for and reconciled to every $ paid into your bank account.
A note about Amazon balances carried
In A2X if your settlement period is only in a single month (e.g April 10th to April 24th) then there will be one journal entry in QuickBooks where the final line item in the journal will be the single deposit to your bank account. However if your settlement period runs across a month end (e.g April 24th to May 8th), then A2X will create two journals; one for the first month and one for the second month. This is important for keeping the transaction data in the correct month for business financial reporting.
The effect of this split is that at the end of the first month the amount that Amazon owes you for the first month's of transactions will be collected in a carried balance account and carried in to the second journal period. Then at the end of the final journal the total deposit will be made. This will ensure that the total deposit in your bank account from Amazon will perfectly match to the journal that A2X creates and QuickBooks will offer it as a match on the bank transactions screen.
Step 8: Give us your feedback
We really feedback on QuickBooks Online. We want to refine our integration - so please share your feedback, any issues you encounter - we are listening!