Deferred transactions are Amazon orders that Amazon does not include in the current payout. They're held back and released later. Common reasons:

These items don't show up in the settlement you receive for the current period; they show up in a later settlement when Amazon releases them.

If you only book revenue when the payout lands, sales that occurred this month can appear next month (or later). That creates:

Good revenue recognition means you book sales, refunds, fees, and taxes in the period the activity happened, not when Amazon decides to pay you.

Each month, Link My Books automatically finds all Amazon transactions that were:

Then, for each Amazon marketplace, Link My Books generates two additional "recognition settlements" that look just like normal Link My Books settlements (broken down by Sales, Refunds, Fees, Taxes), but with a different balancing account:

We also separate deferrals by type, so you can see the movement clearly:

When Amazon doesn't provide a reason, Link My Books automatically generates another pair of settlements in addition to the DD+7 and B2B ones.

For example, you'll see references like:

And when released:

Deferred and Released recognition settlements are created on the 15th of the following month. This timing ensures complete accuracy, as Amazon settlements can sometimes span across month-end (for example, from 30th September to 13th October).

By waiting until the 15th, Link My Books can confirm all relevant deferrals and releases for the prior month before generating the entries.

The balance (net) of each recognition settlement posts to the Amazon Deferred Balances account you choose (default recommended is LMB9d: Amazon Deferred Balances). That keeps a clean trail on your balance sheet of amounts Amazon is withholding and then releasing—while your P&L lands in the correct month.

From the chosen date onward, LMB will create monthly Deferred and Released recognition settlements per marketplace (with DD+7 and B2B split), so revenue lands in the correct month.

Normal Amazon settlements continue as usual.
New recognition settlements appear for each marketplace:

Each recognition settlement shows the familiar Sales / Refunds / Fees / Taxes lines.
The net amount posts to Amazon Deferred Balances.

Sanity check:
Over time, the running balance in Amazon Deferred Balances should approximate what Amazon is currently withholding.
As releases happen, that balance reduces.

Some accountants — especially for higher-volume clients — close their monthly books within the first week of the following month. Because Link My Books generates Deferred and Released recognition settlements on the 15th of the following month, those entries land after these accountants' books are already closed.

If that describes your close cycle, here's how to handle it.

Amazon settlements can span across month-end — for example, a settlement that runs from 30 September to 13 October. The portion of that settlement which sits inside September only becomes complete in our system once Amazon issues the full settlement file in mid-October. If we generated the recognition entries on the 1st of the following month, we would miss late-arriving deferrals and releases that legitimately belong to the prior period.

Waiting until the 15th means the recognition entries are complete and final when they're created. We don't have to revise them later, which would otherwise affect months you've already closed.

If you need to close before the 15th, you can post a manual journal at month-end based on the deferred and released figures visible in Link My Books on your close date, then reverse it on the 15th when our actual recognition entries land.

Step by step:

If you close month-end on or after the 15th of the following month, you don't need to do anything. The recognition entries will be in place before you close, and you can rely on them directly.

Q: Does this change my deposit reconciliation?
A: No. Your actual payouts still reconcile to your bank/clearing as usual. The recognition settlements route net movements through Amazon Deferred Balances, not your bank.

Q: Which account type should "Amazon Deferred Balances" be?
A: We recommend an Other Current Asset (it represents amounts Amazon owes but hasn't released). If your accountant prefers a different treatment, follow their guidance.

Q: Multi-marketplace or multi-currency?
A: Link My Books creates separate recognition settlements per marketplace (and splits DD+7 vs B2B). Currency handling follows your accounting platform's standard conversion on the document date.

Q: Can I backfill historical months?
​A: Yes. In Settings → Settlement Settings → Revenue Recognition, enable Deferred Transaction Adjustments and set the start month you want recognition to begin.

Q: My Amazon Deferred Balances doesn't clear down—should it net to zero?

A: No—that's expected. Because new orders are deferred every month and older cohorts are released, the balance is a rolling working balance, not something that goes to nil.

Q: When does Link My Books generate Deferred and Released settlements?
A: They are created on the 15th of the following month. This gives Amazon enough time to finalise all settlements that cross over month-end (e.g., 30th Sep – 13th Oct). Waiting until the 15th ensures the entries include everything deferred and released for the prior month, without risk of missing late settlements.

Q: What if I close my books before the 15th?
A: See the Workaround for accountants who close month-end before the 15th section above. The pattern is to post an estimated month-end journal that reverses on the 15th when our actual entries land.

Q: Why do I see extra Deferred/Released settlements without DD7 or B2B in the name?
​A: Amazon occasionally withholds funds without specifying a reason. When this happens, Link My Books generates additional Deferred and Released settlements (with references like XXXXX-GB-2025-10-1-deferred and XXXXX-GB-2025-10-1-released) so that these amounts are still recognised correctly in your accounts.

Q: How do I reconcile the VAT on Amazon fees when deferred transactions are enabled?
​A: With deferred transactions enabled, reconciling the VAT on Amazon fees has become more complex. The fee amounts in settlements may not match Amazon's monthly VAT invoices due to timing differences between when fees are charged and when they appear in settlements.

If you require the VAT on Amazon fees to be completely accurate for your VAT return, we recommend this approach (used by some of our larger customers):

This approach ensures your VAT return accurately reflects the fees Amazon charged, while keeping the reconciliation process manageable.

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