For each settlement you receive from a sales channel, Link My Books creates a journal entry.
Since journal entries need to balance debits and credits, they can't be left with the balance of the settlement as a total - the amount must be also allocated to an account so that the journal entry can balance to zero.
If the balance of a settlement is negative, the sales channel will charge your card on file.
If the balance of a settlement is positive, the sales channel will deposit the funds into your chosen bank account.
Good to know: If you sell across multiple Amazon marketplaces, Amazon may sometimes use a positive balance from one marketplace to offset a negative balance on another (a cross-debt adjustment) rather than charging your card. When this happens, the charge to your card will be reduced or may not occur at all. The cross-debt adjustment flows through the Amazon Reserved Balances account in Link My Books. For more details, see Why are some of my settlements being sent as bills instead of invoices to Xero?
In order for us to know where to allocate these charges and deposits we need to know which bank account and credit card you have on file for each of the marketplaces you sell in.
During your initial account set up or on the QuickBooks Bank Accounts settings page, you can select these accounts, as shown below:
These can be updated at any point by heading to Accounts & Taxes > QuickBooks Bank Accounts;
If you want to use an asset account on the balance sheet rather than a bank account to clear the funds through then toggle on the "Allow asset accounts" toggle.
If you have any questions about this article or feedback on how we could make it better please reach out to the support team via the blue chat icon on the bottom right of the page or via email to [email protected].