'Single journal, single payment, where do they go and how are they reconciled?'

This is the simplest scenario for reconciling:

  1. Amazon generates one settlement that covers the period from the 4th of April to the 18th of April.
  2. A2X fetches the settlement and either you manually send the settlement from A2X to QBO or A2X can automatically post it directly to QBO (Go to A2X Settings > Auto Invoicing > Enable Auto-posting Settlements).

3. The settlement will be sent as a Journal to QuickBooks Online (QBO).

One of the easiest ways to find the journal straight after posting it is to click the magnifying glass at the top right of the page in QBO and a drop down will appear showing your recent transactions:

If you select the journal you have just posted you can review its contents:

4. Now it is time to reconcile the journal entry to the Amazon deposit in your bank account.

Select ‘Banking’

As you will see above, the journal for $58,139.00 has been auto-matched by QuickBooks online because the amount of the journal matches the amount of the settlement deposit amount.

All you need to do is click 'MATCH' and that's the settlement entered into QBO and reconciled to the bank deposit.

'What about multiple or split invoices? Where do they go and how are they reconciled?'

Your next settlement has now been generated by Amazon and the period covers the 18th of April to the 2nd of May with a total settlement value of $47,563.02

A2X will split your settlement of $47,563.02 into two journals. You will have one journal for the amount of $42,358.18 in April and another journal for the amount of $5,204.84 in May. This is because the settlement period actually covers two different periods (months). A2X splits the settlement to ensure your sales and fees are accounted for in the correct month.

And when you send it to QBO, you will have two journals dated accordingly.

The beauty with split settlements in QBO is you still only have the one entry to reconcile to as shown below:

As you will see above, the journal for $58,139.00 has been auto-matched by QuickBooks online because the amount of the journal matches the amount of the settlement deposit amount.

All you need to do is click 'MATCH' and that's the settlement entered into QBO and reconciled to the bank deposit.

'What about invoices in other currencies? Where do they go and how are they reconciled?'

 If you sell in multiple marketplaces with different currencies in Amazon you will have noticed that settlements are always in the currency of the marketplace (e.g Amazon.ca settlements in CAD and Amazon.com  settlements in USD). Amazon has a currency conversion feature which you can enable, where Amazon will convert the settlement from the marketplace currency to your preferred currency right before they pay it out to you.

So let's say your home currency is CAD - this means that by default QBO will not recognise that the $968.56 CAD payment from Amazon is actually for the journal amount of $748.97USD. 


When you expand the transaction line panel in the QBO banking screen, you will see the radio button 'Find Match'.

If you select the 'Find Match' radio button, the following page will open and QBO will automatically look for matching transactions in your home currency (CAD). In this case we already know the settlement is in USD so we select the 'Foreign Currency' radio button as highlighted below:


Now that we have selected the foreign currency radio button QBO will look for transactions in other currencies. As you can see below QBO found the USD journal entry. So now we just select it to tell QBO we want to match the CAD deposit to the USD journal entry, click save and that is it - reconciled!

Summary:

  1. Single Settlement Reconciliation
  2. Split Month Settlement Reconciliation
  3. Multicurrency Settlement Reconciliation

 

We hope this clarifies how to approach these three scenarios on where settlements go in QBO. If you have further questions, feel free to reach out to us at contact@a2xaccounting.com. We would be glad to help you.

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