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Why doesn't A2X import every Amazon order as an individual Xero invoice?
Why doesn't A2X import every Amazon order as an individual Xero invoice?

Individual Amazon Order Posting

Ashley Schroder avatar
Written by Ashley Schroder
Updated over a week ago

A2X has been built from the ground up with one basic premise - to correctly reconcile all transactions back to the money in your bank account. We believe this is the one data point that you can have confidence in.

We have found that, when doing Amazon accounting based on order data, it is extremely hard to ever correctly reconcile to the payments that hit your bank account. All of the fees, adjustments, reimbursements mean that the order data seldom relates directly to the net payment Amazon pays you.

In addition to the need to accurately reconcile payments from Amazon to sales and fees, there are three other reasons we do not import individual invoices.

1) Xero recommends against having too many transactions in your accounting system. Xero is designed for financial reporting, not for operational functions.  A2X consolidates every settlement period into 1-2 invoices only. This significantly reduces the strain that a very busy eCommerce business could put on Xero, if it were posting many invoices per day.

2) Improved Management Accounting. Many invoices per day can make the process of reconciliation slower. Our consolidated invoices speed up your ability to get quick and accurate financial reporting.

3) eCommerce Contacts Xero does not recommend having more than 10,000 contacts in your account at any time and advise that performance can begin to be affected if you exceed this number. If a busy online Amazon seller were to post each invoice separately by contact, this limit could quickly be exceeded.

In conclusion, if you have 100's of orders per day, you likely do not want to review each one of them within your accounting system. However, you do need to have a complete confidence that Amazon paid you the correct amount, and that this payment reconciles correctly to your sales and fees.  A2X provides you with this information in an easy to reconcile format.

Note: If you are in the UK and concerned about the need for daily sales reporting, please check out our article A2X and Making Tax Digital.

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