A2X for Amazon and Shopify users
If you have connected A2X to your Amazon or Shopify store, take advantage of our assisted setup questions and let A2X complete the setup for you. The accounts and taxes page is where the majority of our users spend time setting up before being able to reconcile the payouts.
By answering a few basic questions we can complete all or most of the setup and save you hours of set up time. Reach out to our support team to enable this "assisted setup" feature for you.
A2X can enable region-based settings and apply default accounts and tax settings best suited for your ecommerce accounting needs. Simply answer a short list of questions (2-5 questions based on your region and tax registrations) by clicking on the yellow "Setup Account and taxes" button.
Below are the questions we'll ask to enable various settings in your account
Select the main country your business operates in:
If your business is located in multiple countries, or if you are not sure, select the country of your accounting system and the financial reports you need to generate in Xero, QuickBooks Online or Sage.
(ie: If your accounting system is a UK Xero account, select United Kingdom as your main country. If your accounting system is a Canadian QuickBooks Online account, select Canada as your main country)
Are you responsible for collecting/remitting tax (or VAT, GST) for that country?
Choose Yes or No
For users who selected yes in the previous question and are tax registered, you can specify additional countries in a follow-up question
2.1 Which additional countries are you registered in?
For example: if you are registered in the UK- select None if you are not VAT registered in any other country,
- or choose the additional countries you are required to collected and remit taxes.
This allows A2X to separate the transactions at a detailed level and enables advanced settings and customized configurations
2.2 Which tax rate best describes your business? Standard rated only or Mixed (Zero rated, Reduced rated). This question only applies for UK VAT registered sellers.
If you only sell standard rated products, A2X will be able to offer the assisted mapping for your account. If you have a mix of zero rated and standard rated products, then we recommend setting up product groups in A2X and customizing your accounts and taxes mapping.
2.3 Are you filing via OSS/IOSS
For UK based sellers who have also selected EU as the additional registered countries, you have the option to confirm if you are filing via OSS/IOSS for additional configurations in A2X.
Assisted setup or custom setup?
Assisted Setup: Choose this option if you want A2X to complete your setup for you. A2X will create default chart of accounts in your accounting system and use default tax rates based on your main region and tax registrations.
Example 1: US tax registered users
For users who are registered in the US or any country with complex tax rules and rates at the state, city, or Province levels, A2X will create a set of default chart of accounts specific for Amazon accounting in your Xero, QuickBooks Online to Sage and categorize all taxes collected by Amazon as a sales tax liability.
Amazon will collect and remit marketplace facilitator taxes for most US states and several Canadian provinces which will net to zero in the accounting system.
Example 2: UK VAT registered users
For users who are using Xero or QuickBooks Online to file your MTD VAT return, A2X will create a set of default chart of accounts specific for Amazon accounting in your Xero, QuickBooks Online or Sage and apply VAT rates based on whether the transactions shipped to a UK or Non-UK jurisdiction.
All transactions shipped to UK will have a 20% VAT tax rate applied, and as a default all other transactions will use a zero rated tax rate and separate the transactions for your VAT return. All expenses will have a 20% reverse charge as the default expense tax rate applied, with the exception of Amazon.co.uk. marketplace advertising fees, which will have the 20% Standard expense tax rate as the default.
This default mapping will include the Amazon sales and taxes transactions in your Xero, QuickBooks Online or Sage tax module. For more information reference this article HERE
Example 3: UK VAT registered users also registered in additional countries
For users who are using Xero or QuickBooks Online to file your MTD VAT return, A2X will create a set of default chart of accounts specific for Amazon accounting in your Xero, QuickBooks Online or Sage and apply VAT rates based on whether the transactions shipped to a UK or Non-UK jurisdiction.
All transactions shipped to UK will have a 20% VAT tax rate applied, and as a default all other transactions will use a zero rated tax rate and separate the transactions for your VAT return.
All expenses will have a 20% reverse charge as the default expense tax rate applied, with the exception of Amazon.co.uk. marketplace advertising fees, which will have the 20% Standard expense tax rate as the default.
For users who need to create additional nominal codes in Xero, QuickBooks Online or Sage to categorize the transactions separated in the financial reports can take advantage of the advanced rules and mapping options available at the registered country levels. Click HERE for more information on the advanced automapping rules enabled.
Custom Setup: Skip the assisted setup and default settings and customize your A2X settings according to your preference and financial reporting needs.
Pro Tip: You can get started with the assisted setup to see how A2X works, then refine the accounts and taxes mapping as needed before upgrading to a paid subscription
If you've selected the assisted setup option, you're all set up!
Click save and continue to allow A2X to create the new chart of accounts in your accounting system.
Next step
You are ready to complete the last step which is to review and send a payout from A2X to your accounting system
Review, send and reconcile
Click on the "review" icons to view your payouts before sending an entry to your accounting system.
If you are a Xero user, check your DRAFT INVOICE and DRAFT BILLS section to approve the new entries from A2X. Below is an example of the A2X transaction that Xero has recognized as a match. Just click on the blue "ok" button to reconcile this payout and you're done!
Related articles:
Tax mapping in A2X to include or exclude transactions from your tax module (for UK, EU, AU and NZ sellers)
Amazon Transaction Type Categories
Shopify Transaction Type Categories
Do you need help with your A2X set up?
Are you struggling with setting up your Accounts and Taxes page and you would like some help from an accountant or bookkeeper? We have a directory full of expert accounting/bookkeeping partners around the world who are ready to assist with your e-commerce accounting and A2X.
Please click HERE to find an expert