Walmart provides a range of reports in the Seller Center and navigating them or just knowing which report to use can sometimes seem like an impossible feat.
Furthermore, when it comes to attempts to reconcile back to a Walmart 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 and how to achieve the end result.
With A2X, you can not only automate your Walmart accounting, you can also reconcile your 1099-K annually. This means that with A2X, you can rely on a complete audit trail every financial year giving you confidence that you can spend your valuable times on things other than the monotonous task of accounting.
Throughout this guide we will step through an example of the method used to reconcile your A2X Settlement Data to the Annual Walmart 1099-K.
Reconciling your A2X Settlement Reports to your Walmart 1099-K.
A2X Settlement Statement export
Walmart 1099-K Report
The Walmart 1099-K is generally sent to the Primary Seller Account owner.
Here is some further information on the Walmart 1099-K as taken from the Walmart Seller Help Center:
'Walmart Marketplace issues a Form 1099-K to sellers with at least 200 orders and $20,000 in gross sales in the calendar year that just ended.
To qualify for a 1099-K, Marketplace sellers must meet the following conditions:
You are registered with Walmart Marketplace as a W-9 entity.
You shipped more than 200 orders for a total of at least $20,000.
You must have the following information filled out in Seller Center: Legal business name, Tax ID (TIN/EIN), Physical address, Business phone number and Email address of primary contact.
If you meet the requirements above, you will receive an email from your payment processor with instructions on how to access your 1099-K. If you do not meet the requirements, you must self-report your sales figures directly to the IRS.
1099-K filings only report sales and do not include any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts or any other amounts. For more information on 1099-K forms, please have your tax professional review the IRS Website.'
The excerpt above is taken from the Walmart Seller Centre help article HERE.
This is the sample 1099-K we will be reconciling in this guide:
Because the 1099-K is broken down into months, we reconcile the report monthly to ensure we can easily pinpoint any differences, if found.
The totals listed in each month here are what we are going to reconcile the A2X data back to:
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'
3. Select the relevant settlements
4. Select 'Export' and click on 'Apply'
Note: you may have to do multiple exports. The export limit in A2X is 13 settlements per export.
This will download a CSV file to your computer.
5. Open the CSV file and resave the file as a workbook (.xls)
6. Create a pivot table to group the transaction lines together in each of their categories, by month.
To do this, we add the following in the pivot table:
Add 'Description' to the Rows category
Add 'Amount' to the Values category
Add 'Invoice Date' to the Columns category
7. Lastly, you will need to add up all items as highlighted below (Sales Fee Revenue + Sales Revenue + Sales Shipping Revenue + Sales Tax Collected):
For simplicity, you can copy and paste the pivot table as values into a new sheet to complete your comparison to the 1099-K:
The yellow highlighted items are what make up the Walmart 1099-K monthly totals.
The orange highlighted row above are the monthly totals from the Walmart 1099-K.
You will see that for this reconciliation, the monthly and the overall differences were $0.00. So this year balances to the cent, completely. It is common to see a small difference in one month though, that is taken up the following month with Walmart reporting, so it is recommended that you complete this procedure for each month of the year, if you wish to ensure the full year balances.
The method outlined above will help you to understand where the numbers come from on a 1099 report. The 1099 though, is purely a total of the gross amount of payment card/third party network transactions for the year. From an accounting perspective, the 1099-K isn't a reflection of how a business performed, therefore it is completely normal that your accounting system profit and loss report doesn't tie back to a 1099, after all we all know that Sales Tax isn't part of revenue!
Feel free to contact our support team if you have questions regarding the procedures outlined in this guide.
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