Amazon settlements are generally paid every 1-2 weeks, but will often cross a month boundary.
For example, one settlement may start on June 25th and run through to July 9th.
If we create one invoice for this settlement, it will either need to be created in June, or in July. This means the entire period of sales and expenses will be recorded in a single month, when in fact, it relates to two months.
Because of this, A2X will split the settlement data according to which month the sales or fees actually occurred in. This will ensure that your financial accounts properly record the transactions in the month that they've occurred in.
It will also make months more comparable to previous months and years for your reporting.
How do I reconcile two invoices in Xero?
If you would like an overview of sending and reconciling a split settlement period in Xero, please check out our article Where do settlements go when A2X sends them to Xero - Split Month Settlement Reconciliation.
When we split settlement entries in Xero, we use a 'Carried Forward Balance' account to carry over the pending Amazon settlement balance. You can learn more about this method HERE.
Hint: If you are in chat and wish to view the article outside of the chat window, please click HERE