Average time to complete: 5-7 minutes
Estimated difficulty rating: Medium (Best to involve your accountant)
The last thing you need to do before you start sending Amazon settlements to Xero, is to choose which Accounts and Tax Rates you want to assign to the different Amazon transaction types.
You need to check with your accountant that you have this set up correctly BEFORE you start sending settlements to Xero.
>>>For European region Amazon accounts, with UK version of Xero and who are filing UK VAT returns through Xero
(All other accounts please scroll down)
After connecting to Amazon and Xero you will be redirected to the 3 step Accounts & Taxes wizard, as shown below.
Step 1: Choose a Xero account for each Amazon Transaction Category
You can use our default accounts or choose your own existing accounts from the dropdown menus shown below:
(Using our default accounts will create them as new account codes in your Xero account)
Step 2: Select which countries you hold VAT registrations in
If you hold VAT registrations in other European countries (on top of your UK VAT registration) then select those here:
If you only hold a UK VAT registration then check this box:
Step 3: Choose your tax rates for each Transaction Group
You will be asked to set a VAT rate for the following transaction groups:
UK Vat-able Sales
UK Non Vat-able Sales
Amazon Fees
Amazon Reserved Balances
Amazon Loans
Refer to the ❓icons for more information on each group.
Once you click "Confirm Tax Rates" you will be asked to confirm one final time that they are correct and that you have checked them with your accountant.
After completing this step you will be redirected to the settlement dashboard and once your settlements have refreshed you will be able to begin sending them to Xero.
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>>>For all other accounts
After connecting to Amazon and Xero you will be redirected to the 2 step Accounts & Taxes wizard, as shown below.
Step 1: Choose a Xero account for each Amazon Transaction Category
You can use our default accounts or choose your own existing accounts from the dropdown menus shown below:
(Using our default accounts will create them as new account codes in your Xero account)
Step 2: Choose your tax rates for each Transaction Category
You will be asked to set a tax rate for each of the transaction categories.
Refer to the ❓icons for more information on each category.
Once you click "Confirm Tax Rates" you will be asked to confirm one final time that they are correct and that you have checked them with your accountant.
After completing this step you will be redirected to the settlement dashboard and once your settlements have refreshed you will be able to begin sending them to Xero.
>>>The Advanced Way (Greater Flexibility)
Once you have completed the initial account and taxes set up wizard you will have the chance to further fine tune your accounts and tax settings on the Accounts & Taxes page.
Here you will be able to select an Account and Tax Rate for each of the different Amazon Settlement Transaction Types.
The Transaction Types are displayed grouped in our high level categories:
Amazon Sales
Amazon Refunds
Amazon FBA Inventory Reimbursement
Amazon Seller Fees
Amazon FBA Fees
Amazon Storage Fees
Amazon Advertising Costs
Amazon Sales Tax (North American seller accounts only)
Amazon Loans
Amazon Reserved Balances
You can click the Expand All button to reveal all of the individual transaction types and set accounts and tax rates for them individually.
When selecting an Account and Tax Rate you can either choose to Inherit from parent or set an Account/Tax Rate to be Explicit.