In this article we will cover:
Reconciling Home Currency Settlements
Reconciling Foreign Currency Settlements
Introduction
Once you have sent a settlement to QuickBooks you will be able to reconcile the sales journal we create in QuickBooks against the disbursement Amazon paid out to your bank account.
As part of the journal entry we create in QuickBooks we add a line which transfers the exact amount that Amazon has paid you to your assigned bank account for that Amazon Marketplace.
This means that all you need to do is match the line on your bank statement with the journal entry and you're all done.
Reconciling Home Currency Settlements
If your home currency in QuickBooks is GBP for example, then all settlements for the Amazon.co.uk marketplace will be what we call "home currency settlements".
In QuickBooks, on the banking page you will see any payments incoming from Amazon automatically suggest matches with their corresponding journal entries:
If you click the line you can reveal more detail as shown below:
In this example we have an incoming payment from Amazon UK for £21,039.37 which has been suggested as a match for Journal 38.
All we need to do here is click "Match" and the payment will be allocated to that journal entry. The bank transaction will them move to the "Reviewed" tab and you can continue reviewing your other bank statement items.
Reconciling Foreign Currency Settlements
If your home currency in QuickBooks is GBP for example, then all settlements for Amazon marketplaces except Amazon.co.uk will be what we call "foreign currency settlements".
If you are using Amazon's Currency Conversion service, whereby they pay you out in your home currency even for foreign currency settlements, then we will assign the exchange rate that Amazon used for this currency conversion.
In QuickBooks, on the banking page you will see any payments incoming from Amazon but this time they do not automatically suggest matches with their corresponding journal entries:
To match the payments to the correct journal entry click the "Find Match" checkbox:
Then tick the "Foreign currency" checkbox to view all potential matches. Find the corresponding settlement for the payment in the list and tick it and click "Save".
If you have any questions regarding this article then please open a new conversation with support via the blue chat icon on the bottom right of the page.