If you prefer not to use A2X’s automated Deferred Transactions adjustment, or if you need to reconcile periods prior to April 2025, deferred transactions must be accounted for manually using data from Amazon Seller Central reports.
This article explains how to prepare Amazon’s Deferred Transactions data and create a manual reversing journal entry, so revenue, fees, taxes, and cost of goods sold (COGS) are recorded in the correct accounting period.
Why are manual adjustments needed?
Amazon settlements record transactions when funds are released, not when the order occurred. This timing difference can cause revenue, fees, taxes, and COGS to appear in the wrong accounting period.
To correct this, sellers should create a month-end reversing journal entry that:
accrues transactions deferred during the month
reverses transactions released during the month
This ensures revenue and related costs are recorded in the correct accounting period.
The table below shows the impact of Deferred Transactions in your accounting:
Transaction Event | Accounting Impact |
Order occurs | None - Amazon holds funds (deferred transaction) |
Month-end accrual | Revenue and related costs recorded in correct period |
Amazon releases funds | Match deposit (Appears in settlement) |
Accrual reversal | Journal entry reverses when funds are released |
Want to automate this process? See Managing Amazon Deferred Transactions in A2X.
How to manually account for Deferred Transactions
Below are the options to use in creating a manual Deferred Transactions Adjustment with the reversing journal entry. Follow these steps to manually create the manual reversing journal entry.
Option 1: Use the Deferred Transactions Report
Important: The Deferred Transactions Report is a live snapshot. Amazon may update orders from deferred to released at any time. Downloading the report immediately after month-end provides the most accurate view of deferred transactions for that period.
Step 1: Download the Deferred Transactions Report
Go to Amazon Seller Central → Payments → Reports Repository
Select report type → Deferred Transactions Report
Select the date range then request report.
Step 2: Summarize the Data in a Spreadsheet
Use a pivot table to summarize the deferred transactions for the reporting period. Download a copy of the A2X template for a detailed process.
Open the Deferred Transactions Report in Excel or Google Sheets.
Create a Pivot Table to summarize the data.
Transfer the summarized data to a Manual Journal Template.
Step 3: Create a Manual Reversing Journal Entry
Use the summarized totals to create a reversing journal entry in your accounting system.
From the template, post the entries for the period.
Go to A2X Accounts and Taxes Mapping page to reference the transaction lines to the appropriate account.
Assign the appropriate account for each line.
Post the journal entry in your accounting system.
Set the journal as a reversing entry.
Step 4: (Optional) Adjust Cost of Goods Sold (COGS)
If you track COGS in A2X, you may also want to adjust the cost of goods sold for deferred transactions.
To calculate COGS:
Create a pivot table using the Deferred Transactions report.
Add SKU to the rows.
Add Quantity to the values.
Download your unit cost export from A2X.
Use a VLOOKUP (or similar function) to match SKUs to unit costs.
Multiply Quantity × Unit Cost to calculate total COGS.
Record the COGS total in a journal entry adjusting:
Cost of Goods Sold
Inventory or Deferred Transactions account
Option 2: Use Amazon Transactions Report
Important: Reports annexed with Transaction Release Date is only available from January 1, 2025 onward. For the most complete picture, use January 1, 2025 as your start date. Any transactions that were deferred before your report's start date and remain deferred won't appear — though this is uncommon, as most deferred transactions are released within a short window.
Step 1: Download the Amazon Transactions Report
Go to Amazon Seller Central → Payments → Reports Repository
Select report type → Transactions Report
Select the date range then request report.
Step 2: Summarize the Data in a Spreadsheet
Open the Amazon Transactions Report in Excel or Google Sheets.
Filter by Transaction Release Date.
Copy the transactions released in a later period to a new tab
Summarized data and then transfer to a Manual Journal Template.
Step 3: Create a Manual Reversing Journal Entry
Use the summarized totals to create a reversing journal entry in your accounting system.
From the template, post the entries for the period.
Go to A2X Accounts and Taxes Mapping page to reference the transaction lines to the appropriate account.
Assign the appropriate account for each line.
Post the journal entry in your accounting system.
Set the journal as a reversing entry.
Step 4: (Optional) Adjust Cost of Goods Sold (COGS)
If you track COGS in A2X, you may also want to adjust the cost of goods sold for deferred transactions.
To calculate COGS:
Create a pivot table using the filtered Transaction Report.
Add SKU to the rows.
Add Quantity to the values.
Download your unit cost export from A2X.
Use a VLOOKUP (or similar function) to match SKUs to unit costs.
Multiply Quantity × Unit Cost to calculate total COGS.
Record the COGS total in a journal entry adjusting:
Cost of Goods Sold
Inventory or Deferred Transactions account
Important notes:
Always post the journal entry as a reversing entry so the accrual automatically reverses when Amazon releases the funds in a later settlement.
COGS adjustments are optional. Some sellers reconcile sales only, while others reconcile both sales and COGS, depending on their accounting requirements.
Comparing automated vs manual Deferred Transaction accounting
Both methods aim to record revenue and related costs in the correct accounting period, while allowing Amazon settlements to continue reconciling normally with bank deposits.
Feature | Automated Method (A2X) | Manual Method |
When to use | April 2025 onward | Periods before April 2025 and onward |
How adjustments are created | Automatically generated by A2X | Created manually using Amazon reports |
Source of data | Amazon API via A2X | Amazon Deferred Transactions Report |
Accounting entry | Monthly Deferred Transaction Adjustment | Manual reversing journal entry |
Reversal handling | Automatically reversed when funds release | Reversal must be created manually |
COGS handling | Automatically included if COGS tracking is enabled | Must be calculated manually |
Settlement reconciliation | Settlements continue matching bank deposits | Settlements continue matching bank deposits |
Ongoing maintenance | None after setup | Requires monthly manual work |
FAQs
Why do my deferred totals change every time I download the report?
The Deferred Transactions Report is a live snapshot, so the figures reflect order statuses at the exact moment you download it. For the most accurate month-end view, download the report immediately after the month closes.
I forgot to download the deferred transactions report at month-end — what can I do?
Unfortunately, Amazon doesn’t provide historical snapshots, so the report can’t be run retroactively. Use the Amazon Transactions report as another option.
Why is my revenue appearing twice?
This usually means the journal entry wasn’t posted as a reversing entry. Check that the entry is set to automatically reverse in the following month, which will cancel out the accrual when the funds are released.
Do I need to do this every month going forward?
Yes, if your preference is to manually record Deferred Transactions Adjustments. Alternatively, for April 2025 onwards, you can use A2X’s automated adjustments instead — see Managing Amazon Deferred Transactions in A2X.
If you need assistance, please contact the A2X Customer Success team.