If you are using Walmart Fulfillment services (WFS) and Walmart Performance Ads (WPA) your payout will not match with the A2X invoice. This is because Walmart does not currently include these fees in their settlement API that is sent to A2X. Instead, Walmart takes these fees directly out of the payout that you receive without accounting for it in the settlement.
An example Settlement:
August 8 Settlement - The A2X invoice that is posted to your accounting will total $16,000 but the payout that you receive from Walmart will be $15,700 which is Net Sales minus the WPA and or WFS fees. The $300 will need to be accounted for in your accounting system.
July 25 Settlement - In this situation there are no WPA or WFS fees therefore the A2X settlement will match to the Walmart Payout.
You will need to account for your Walmart fees in Xero and Quickbooks.
To set up a repeating bill in Xero
We recommend setting up a repeating bill entry in Xero. This way you will end up with an open invoice from A2X (that includes the sales information) and an open bill each month (which can be updated to reflect the WFS and WPA fees). You can then match both of these up against the deposit that comes through from Walmart to reconcile.
To set up a repeating bill, in Xero: select Business then Bills to Pay.
Click on the drop-down arrow next to New Bill and select, New Repeating Bill.
Set up the bill to repeat every two weeks against the account you would usually apply your WFS and WPA fees to.
For more information on Xero’s repeating bills, read the article in Xero Central here.
When reconciling the Walmart deposit, you will select both the invoice from A2X and the bill entry for the fees. Make sure you Tick the checkbox "Show Spent Items" in the match screen so that both invoices and bills will appear and can be selected for reconciling.
For an overview on negative invoices, read this support article.
For QuickBooks online users the best method to automate this process is by the use of a clearing account. In A2X, you will map your deposit bank account to a ‘Walmart Clearing’ current asset account (Settings->Connections). We only recommend using this option if you know you have WPA and WFS fees.
As your deposits come through from Walmart, you will allocate them to the same clearing account to offset the balance allocated by A2X. This is the reconciliation process. For any settlements that WFS fees have been deducted from, you can easily account for the fees by way of a split allocation in QBO.
The deposit we have received in the bank is $15,700, A2X has allocated the full $16,000 to the clearing account so to reconcile the deposit and allocate the fees you can split the allocation as follows.
The full $16,000 gets allocated against the clearing account to clear the A2X balance.
The $300 is added in as a negative amount allocated against your Walmart WFS/WPA fees expense account:
As a further example, this is an entry in A2X:
And this is the corresponding Walmart settlement for the period:
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