Single Journal / Single Payment

This is the simplest scenario for reconciling:

1/ Amazon generates one settlement for the period from March 6th - March 20th:

2/ A2X fetches the settlement and you either manually send it from A2X to QuickBooks Online or A2X automatically posts it to QuickBooks Online 

Handy Hint: To enable auto-posting, go to A2X Settings > Auto Invoicing > Enable Auto-posting Settlements).

3/ The settlement is sent as a Journal to QuickBooks Online

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 QuickBooks Online, and display drop down showing your recent transactions:

You can select the journal you've just posted to review its contents:

4/ And finally, reconcile the journal entry to the Amazon deposit in your bank account

Go to Banking tab.

As you see above, the journal for $42,413.41 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 the settlement will be entered into QuickBooks Online and reconciled to the bank deposit.

Multiple/Split Invoices

Your next settlement has now been generated by Amazon, covering period from February 20th to March 6th, with a total settlement value of $48,395.77

A2X will split your settlement of $48,395.77 into two journals:

  • one journal for the amount of $29,375.77 in February
  • one journal for the amount of $19,020.00 in March 

Since the settlement period actually covers two months, A2X splits the settlement to ensure your sales and fees are accounted for in the correct month.

When you send it over to QuickBooks Online, you will have two journals dated accordingly.
The beauty with the split settlements in QuickBooks Online is that you still have to reconcile only to one entry, as shown below:

The journal for $48,395.77 has been auto-matched by QuickBooks Online, because the amount of the journal matched the amount of the settlement deposit amount.

All you need to do is click 'Match' and the settlement will be entered into QuickBooks Online and reconciled to the bank deposit.

Invoices in other currencies

If you sell in multiple marketplaces with different currencies in Amazon, you've noticed that settlements are always in the currency of that marketplace (e.g Amazon.co.uk settlements are in GBP and Amazon.com settlements are in USD). 

Amazon offers a currency conversion feature, which you can enable and let Amazon convert the marketplace currency of the settlement into your preferred currency right before they pay it out to you.

Let's say your home currency is USD. By default, QuickBooks Online will not recognize that the $7,942.32 USD payment from Amazon is actually for the journal amount of £6,153.87 GBP.

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

After selecting the 'Find Match' radio button QuickBooks Online will automatically look for matching transactions in your home currency (USD). To see entries in other currencies (in our example: GBP), select the 'Foreign Currency' radio button as highlighted below:

This will trigger QuickBooks Online to look for transactions in other currencies.
In our example, QuickBooks Online has found the GBP journal entry:

We just select it to tell QuickBooks Online we want to match the USD deposit to the GBP journal entry, click 'Save' and that is it - reconciled!

Summary:

  1. Single Settlement Reconciliation
  2. Split Month Settlement Reconciliation
  3. Multi-currency Settlement Reconciliation

 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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