The team at Link My Books are happy to provide users with technical assistance in applying tax rules to their Link My Books setup. We are not Tax Advisors and so our advice and suggestions on the application of tax rules cannot be construed as tax advice. We highly recommend that users seek advice from qualified accountants for their tax compliance.
In this article we will discuss how to swap from A2X to Link My Books whilst maintaining the same setup you had in A2X.
Remember we also offer free one-to-one migration calls where a member of the Link My Books team will jump on a call with you and walk you through the migration and setup process. To book your free migration setup call click here.
4 steps to migrate from A2X to Link My Books
There are four things that you need to consider when moving from A2X to Link My Books.
- Account Mappings
- Tax Rate Mappings
- Product Grouping (Product Types in A2X)
- Cost of Goods Sold Tracking
Firstly, your account mappings within A2X are relatively straight forward to migrate across. Since Link My Books has a guided setup wizard you can utilise that to copy your account and tax rates mappings across.
During the Link My Books setup wizard you will see the following screen:
Initially you will see that we populate the account fields with the Link My Books defaults, but you can easily select from the dropdown menus the accounts you used within A2X since we pull in a list of all of your accounts from Xero, see this example:
Tax Rate Mappings
During the setup wizard, you will also have the opportunity to set the same tax rates you used within A2X, but this is where we like to think that we make the setting up of your account much easier than inside of A2X.
For European Amazon Seller Accounts:
If the Amazon account you’re connecting is a European account, then the next screen you will see will be one to select which countries you hold a VAT registration in. We use this information to automatically set up some country groups on your behalf which ensures that you only account for UK VAT on your sales that are in fact UK Vatable.
Once you have selected your VAT registrations you will be taken to the final step of the wizard where you will select which tax rates you want to use for the transaction categories. We pre-fill these for you with our default rates for UK VAT registered sellers but it’s very important that you check these with your accountant to ensure they are correct.
For North American Amazon Seller Accounts:
If the Amazon account you’re connecting is a North American account, then you will be taken straight to the final step of the wizard where you will select which tax rates you want to use for the transaction categories. We pre-fill these for you with our default rates for UK VAT registered sellers but it’s very important that you check these with your accountant to ensure they are correct.
Product Grouping (Product Types in A2X)
If you are using the Product Types feature in A2X to make groups of your products to then apply separate Tax Rates to, then within Link My Books you would use the Product Grouping feature.
This can be especially useful if you sell products across multiple different VAT rates and need to apply the correct VAT rates to them.
Step 1 - Turn on Product Grouping:
Navigate to the Settlement Settings page and change your transaction grouping setting to Breakdown by Product Group and hit Save grouping settings as shown below:
This will turn on the product grouping feature and add all of your products into a new group called Default Product Group.
Step 2 - Set up your Product Groups:
Next you will need to set up your groups themselves on the Product Groups page.
Navigate to the Product Groups tab and click Add New Group as shown below:
Then give your new group a name and save it as shown below:
Step 3 - Group products as desired:
Move your products from the Default Product Group to their correct group by navigating to the Product SKUs tab and selecting the desired group from the dropdown list on the right of each product, as shown below:
You can also use the dropdown menu to create new groups and remove products from a group.
Step 4 – Set Tax Rates:
Now whereas in A2X you would have had to go in and set the tax rate for each type of transaction separately to apply different rates to different groups, Link My Books has a wizard for that too!
Simply click the % icon on the product group you want to set the different tax rate for and then select the rate you want to use for all sales and refunds for that group from the dropdown menu as shown below:
Cost of Goods Sold Tracking
If you were using the COGS feature within A2X then Link My Books has the same feature too.
When you turn on the COGS feature you will need to set up a few things before it works properly.
Step 1 - Enter your product costs On the Product Costs settings page you will need to enter your landed costs for each of the items you sell.
You can do this on the table on the page itself or if you have a lot of products you can use the bulk upload option.
Step 2 - Turn on COGS and select your asset and direct costs accounts When you turn on the COGS feature on the Settlement Settings page you will be prompted to select an asset and a direct cost account for each of the 3 fulfilment types.
If you have been using this feature in A2X then go to Settings > Cost of Goods Sold page in A2X and take a note of your “Expense Account” and “Asset Account” for each of the 3 types of fulfilment (FBA, MFN and other).
You can then use the same accounts within Link My Books to keep things consistent.
If you haven't already got an asset account for your Amazon Inventory and a direct cost account for your Cost Of Goods Sold then you will need to create both of those in Xero or you can also choose to use our default accounts and then we will create them in Xero for you.
You should check your chart of accounts in Xero before creating these as you may already have them.
The screenshot below shows the table of asset and direct cost accounts.
Once you complete the 2 steps above, we will refresh all of your settlements (excluding ones that have already been sent to Xero) and you will see a new COGS tab on the view settlement pages, as shown below:
Once COGS is turned on, we will from then on send both the Sales & Fees Invoice and the COGS Bill to Xero when you click Send Settlement.
Whilst the above may look like a lot of steps, it should take you no longer than about 15-30 minutes to migrate everything across from A2X to Link My Books and remember, we are always able to jump on a call and help you through it if you need assistance. Simply get in touch with us and we will be happy to help.