This article guides you through reconciling your Amazon settlements in QuickBooks once they've been sent from Link My Books.
What You'll Learn:
Reconciling Home Currency Settlements
Reconciling Foreign Currency Settlements
Introduction
By sending a settlement from Link My Books to QuickBooks, you'll create a sales journal entry. The next step is to reconcile this journal entry against the actual disbursement (deposit) you received from Amazon in your bank account.
Link My Books includes a line in the journal entry that posts the exact payout amount from Amazon to the assigned bank account in Link My Books for that specific Amazon Marketplace.
This design simplifies reconciliation: you typically just need to match the bank statement line (the Amazon deposit) with the corresponding journal entry in QuickBooks.
Reconciling Home Currency Settlements
Settlements from an Amazon marketplace that operates in your QuickBooks home currency are considered "home currency settlements." For example, if your QuickBooks home currency is GBP, settlements from Amazon.co.uk fall into this category.
Steps to Match:
Locate the Incoming Payment: On the QuickBooks banking page (usually found under 'Transactions' > 'Banking'), incoming payments from Amazon in your home currency should automatically suggest a match with the corresponding journal entry created by Link My Books.
Review Match Details (Optional): Clicking on the bank transaction line will reveal more details, including the suggested journal entry.
For instance, an incoming payment from Amazon UK for £21,039.37 might be suggested as a match for "Journal 38."
Confirm the Match: Simply click the "Match" button. The payment will be allocated to the journal entry, and the bank transaction will move to the 'Reviewed' tab in QuickBooks. You can then continue reconciling your other bank items.
Reconciling Foreign Currency Settlements
Settlements from Amazon marketplaces that operate in a currency different from your QuickBooks home currency are "foreign currency settlements." For example, if your home currency is GBP, settlements from Amazon.de (Euros) or Amazon.com (US Dollars) would be foreign currency settlements.
Amazon's Currency Conversion Service (ACCS):
If you use Amazon's Currency Conversion Service, Amazon converts your foreign earnings and pays you out in your home currency (e.g., GBP). In such cases, Link My Books will use the same exchange rate Amazon applied for this conversion when creating the journal entry in QuickBooks.
Steps to Match (When Payout is in Home Currency via ACCS):
Even though the payout is in your home currency, QuickBooks may not always automatically suggest a match for these transactions. Here’s how to manually match them:
Locate the Incoming Payment: Find the incoming home currency payment (from the foreign marketplace sales) on your QuickBooks banking page.
Initiate Find Match: Click on the bank transaction to open its details. Since an automatic match may not be suggested, look for an option like "Find match" or "Find other records" to manually search for the corresponding journal entry.
Use the "Foreign currency" Filter: On the 'Match Transactions' screen (or similar), you will need to help QuickBooks find the correct journal. Tick the "Foreign currency" checkbox. According to the original instructions, this will help display all potential matches, including the journal entry from Link My Books for these types of settlements.
Select the Correct Journal: Find the corresponding settlement (journal entry) created by Link My Books from the list of potential matches. Tick the box next to the correct journal entry.
Save the Match: Click "Save" to confirm the match. The transaction will then be reconciled.
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