Managing Amazon Settlement Discrepancies with Link My Books
Amazon settlements can sometimes present discrepancies when processed through "Link My Books," leading to potential issues with reconciling accounts in Xero. This article explains common scenarios, their causes, and actionable steps to address settlement-related problems.
Common Causes of Discrepancies
1. 'Unknown Marketplace' Settlements
Amazon settlements marked as "Unknown Marketplace" indicate that Amazon did not provide specific information about the marketplace. These settlements are not sent to Xero, which may cause discrepancies in your accounts. This often occurs if there are no sales or refunds within a specific marketplace for the given period. In such cases:
Review all settlements.
Confirm necessary details directly with Amazon to assign them correctly and send to Xero.
2. Missing Settlements After Deactivation
If your Amazon account is deactivated, it restricts the functionality of the API, preventing "Link My Books" from acquiring settlement data. To resolve this:
Wait until your Amazon account is reactivated.
Once reactivated, synchronize your account to access the required data.
3. Settlement Chronology Issues
Occasionally, settlements may be sent to Xero out of chronological order because Amazon may release complete data for previous transactions mid-month. This is normal and mainly occurs when earlier settlements include VAT data requiring additional processing time.
4. Delayed Settlements After Subscription Reactivation
If you recently reactivated your Link My Books subscription following a trial, delays may arise before new settlements appear. If settlements are still missing after manual polling by the support team, it indicates no new settlements are currently available.
5. Calendar Month Mismatches
Amazon’s updated settlement systems often result in monthly settlements that do not match calendar month sales due to:
B2B Orders: Payments can appear the following month since buyers often get 30 days’ credit.
B2C Orders: Payments follow a "Delivery Date + 7 Days" rule, causing deferred appearances in settlements. Previously, settlements matched more closely with calendar month sales, but recent policy changes now lead to delays. Link My Books plans to leverage Amazon's new API to improve automated month-end reporting, reducing these discrepancies in the future. Amazon's new Deferred Transaction Report API is expected to provide greater transparency, offering a snapshot of all orders placed during the month but not yet paid. Link My Books plans to integrate this API, automating the detection and reporting of deferred transactions to improve month-end financial reporting accuracy. While this feature is being developed, updates will be shared in future announcements.
Resolving Issues
Synchronize Regularly: Ensure "Link My Books" is fully synchronized with your Amazon account.
Review Settlement Dates: Check if older settlements are missing transactions and whether Amazon released the data late.
Confirm with Amazon: If 'Unknown Marketplace' appears frequently, verify the details with Seller Central.
Contact Support: If issues persist after troubleshooting, consider raising a support ticket for manual data polling.
Manually Track Deferred Transactions: Until the new API is integrated, sellers should manually estimate outstanding deferred amounts to ensure accurate financial reporting.
By following these practices and understanding Amazon’s payout systems, users can minimise discrepancies and ensure accurate reconciliation of their accounts in Xero or QuickBooks. Link My Books is also actively developing automated solutions to enhance the management of deferred transactions, leveraging Amazon's Deferred Transaction Report API. These solutions aim to streamline financial reporting and reduce manual interventions for sellers.
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].