A2X checks every raw settlement we fetch for inconsistencies. This level of double-checking by A2X adds credibility to what we do and while it is rare, there have been cases where A2X has detected an issue within settlement accounting data that could otherwise easily go unnoticed. In these cases there is an inconsistency within the Amazon data.
How to know a settlement is inconsistent:
And on the settlement review screen:
The issue is a result of the Amazon Raw Settlement data not balancing back to the net deposit about so it can't be reconciled (it's inconsistent). Often, just one line is missing from the raw settlement report. In recent cases we have seen the Current Reserve line or the Loan Repayment line is missing from the raw data. You can generally pick the difference on the raw report by checking it against the summary statement.
Generally, if you raise a case with the Seller Central support clearly outlining the issue they will reissue the affected settlements. Sometimes though, this is not always a super quick process. So while it isn't ideal, if you are in a situation where you need to complete your accounting Amazon have not yet reissue the affected settlements you can amend the entry in your accounting system.
Amending the entry will mean the supporting documents that are sent by A2X attached to the entry in the accounting system won't directly match the detail of the entry we send over. Due to this, it is recommended that you replace the amended entry in your accounting system with the corrected settlement once it is reissued by Amazon.
The following steps outline the process for amending the invoice or bill entry directly in Xero:
- Send the inconsistent entry over from A2X.
- Open the draft invoice in Xero (Business > Invoices).
- Add in the line that is missing from the raw settlement report - you can generally pick this by checking the difference amount as noted in the settlement review page in A2X, against the Summary Settlement statement in Amazon (Reports > Payments). If the line missing is the current reserve amount for example, you will assign the amount (it will be a negative amount in the invoice) to the Amazon Reserve Balances account in Xero.
- Save and approve the invoice and you should then be able to reconcile it as normal.
- Remember to replace the invoice with the corrected one once Amazon reissues the affected settlement/s.
Important point to note:
If your inconsistent settlement crosses over a month period, a missing line in the raw report could result in A2X creating 2 invoices in Xero in an instance where it should have been 1 invoice and 1 bill. If this happens and you are not extremely concerned about the reporting period of the amount that is missing from the raw data (reserve line, loan repayment line) then you could add the line into the larger invoice entry portion.
If you have any questions regarding an inconsistent settlement, please don't hesitate to contact our support team.