Amazon provides a wide range of reports in Seller Central, and navigating them—or just knowing which report to use—can sometimes seem like an impossible feat.
Furthermore, when trying to reconcile back to an Amazon 1099K, it can feel like there is an overload of information available, but none of it really tells you what to do, what to use, or how to achieve the end result.
In 2024, Amazon introduced Deferred Transactions under their DD+7 program, adding extra complexity to the reconciliation process.
In Part 1 of this guide, we will step through an example of the method used to reconcile your Amazon Date Range Summary Report to the A2X Date Range Summary Report.
In Part 2 of this guide, we will cover the method used to reconcile your A2X Settlement Data to the Annual 1099K and the Amazon Orders Report, including the consideration of DD+7 transactions.
For this guide we will reconcile one month only, however, the same principles apply for calculating the complete year.
PART 1: Reconciling your Amazon Date Range Summary Report to the A2X Date Range Summary Report.
Overview
The Amazon Date Range Summary Report is completely independent of the Amazon Settlement data that A2X generates in your account. This reconciliation process is designed to confirm that the data in your A2X account (based on Amazon’s Settlement data) aligns with the figures in Amazon’s independent Date Range Summary report. It’s a straightforward way to verify that A2X has captured all the necessary data for the period you’re reconciling.
The A2X Amazon Summary report compiles the totals from the Settlement entries we’ve created in your account, making it easy to cross-check and confirm accuracy. Find out more about A2X's Amazon Summary Report here.
Information required:
Amazon Date Range Summary Report
A2X Amazon Summary Report
Generating the Amazon Summary Seller Statement
To generate a Date Range Summary Report, follow these steps in Amazon Seller Central:
Go to Reports > Payments
Select 'Date Range Reports'
Click 'Generate Report'
In the Generate date range report pop-up box, select report type: Summary
Select reporting range: 'Month' or 'Custom'
Enter the specified date information and click 'Generate'
Please Note: You will need to include both standard orders and invoiced orders (B2B).
Sample Report:
Generating the A2X Amazon Summary Statement
To generate a Date Range Summary Report, follow these steps in A2X:
Go to Reports > Summary Statement (If you don't see the Summary Report under reports, you may need to enable it by visiting Settings > Beta Features)
Select the required date range
Click 'Create Report'
Please Note: The A2X Amazon Summary Report is currently limited to 3 months. In our example we have combined the figures from four date range summary reports produced in A2X.
A2X Amazon Summary Report
This report was produced in quarterly increments in A2X and then the 4 reports were added together to get the below totals:
With the gathered information, you are now ready to commence Part 1 of the reconciliation process.
The Date Range Summary Report reconciliation should be relatively straightforward. In general, if there are differences between the A2X Amazon Summary Statement and the Amazon Summary Date Range Report, it is usually related to either general timing differences that are common between Amazon reports, or missing data in A2X.
In our example, the Summary Report reconciliation balances with no differences. A small difference between the reports would generally be considered immaterial timing differences. Large differences could mean there is missing data in A2X.
Having now completed the reconciliation between the A2X Summary Report and the Amazon Summary Report, we can now move on to Part 2.
PART 2: Reconciling your A2X Settlement Data to your Amazon 1099K and Amazon Orders report
Information required:
1099K Report
A2X Settlement Entries (exported)
Amazon Orders reports (required for the months impacted by DD+7)
Amazon 1099K Report
The Amazon 1099K is generally sent to the Primary Seller Account owner only. You may also be able to access your 1099-K online.
Here are the steps to access this form:
Login to your Amazon Seller Account
Hover over reports
Select “Tax Document Library“
Download the PDF of your Amazon 1099-K form for the applicable tax year
Sample Report:
A2X Settlement Export
The A2X Settlement Reports can be exported directly from within your A2X account.
Here are the steps to export the required data from A2X:
1. Login to your A2X Account
2. Enable 'Bulk Actions' by clicking into the checkbox
3. Select the relevant settlements and click "Export Settlements"
This will download a CSV file to your computer.
4. Open the CSV file and sort the data by date to include only the 2024 year (remove the lines that are not part of the 2024 year that you are reconciling).
5. Create a pivot table to group the transaction lines together in each of their categories.
6. In the pivot table tab, add 'Description' to the Rows category and add 'Amount' to the Values category (Google Sheets).
7. Lastly, filter the pivot table to show only the required reconciliation lines (as shown):
If you would like to complete the 1099 reconciliation on a month-to-month basis, you will customize the pivot table to show the data separated by months (in columns).
Table 1
To make it easier for the monthly reconciliation, it is best to copy down the totals per month from the second page of the Amazon 1099k report.
Table 2
The next step is to compare the totals between the A2X Settlement Data Pivot Table and the Amazon 1099k second-page report totals:
Table 3
As shown above, there is an 'unknown' difference for the months of January and February. As the bulk of the difference is in January, it would likely be related to timing and the year cross-over.
The total combined difference for the months of March through to August is $398.30 which is likely immaterial in relation to the overall totals.
The large combined differences shown in September through to December relate to Amazon's new DD+7 deferred transactions policy. The steps to reconcile these differences are outlined below.
As the difference in September is immaterial, we will focus on the larger differences in October, November, and December. To reconcile these differences the Amazon Orders Report is required. This report includes the DD+7 orders therefore allowing us to compare the totals with our differences.
In Amazon Seller Central, download the monthly Orders Report - Amazon limits this download to one month at a time.
You will need to ensure the following report columns are selected in Amazon before downloading (these are not all selected by default):
Gross Sales Income
Giftwrap Income
Shipping income
Promotions
Sales Tax Collected
Giftwrap Tax Collected
Shipping Tax Collected
Below your 1099 reconciliation (table 3), add in the following details:
Table 4
The Orders Report totals come from the individual monthly Orders Reports downloaded from Amazon.
The A2X Settlement totals are copied from Table 2.
Calculate the difference between the Amazon Orders Report and the A2X Settlement Data totals.
Add the total monthly 1099k difference.
The remaining 1099k difference is not related to the A2X data as we have already balanced the Amazon Summary Date Range report to the A2X Summary Date Range Report therefore the difference will generally be an Amazon timing difference between the Amazon 1099k report and the Amazon Orders Report (external to A2X).
Compare the totals between the Amazon Orders Report and the Amazon 1099k Annual Statement. In most cases, this difference will match the 'Remaining 1099k diff'.
Note: Our assumption for this difference would be that it relates in some way to DD+7 orders that cross over the month-end. We recommend consulting with Amazon Seller Central support to determine what makes up the difference between the Amazon Orders Report and the Amazon 1099k Annual Statement.
The end result is the following:
Amazon Date Range Transaction Report balances to the A2X Summary Date Range Statement (therefore there is also a match to the A2X Settlement Data)
Amazon Date Range Summary Report balances to the Amazon 1099K
A2X Settlement Data in conjunction with the Amazon Orders report balances to the Amazon 1099K Annual Statement
Table 6
Feel free to contact our support team if you have questions regarding the procedures outlined in this guide.
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