Understanding the Amazon Reserved Balances Account
The Amazon Reserved Balances account is used to help keep your books accurate when Amazon holds back funds or when settlements span multiple months. Here's how it works:
1. Split-Month Settlements
Sometimes Amazon sends a payout that spans across two calendar months. In these cases, we split that settlement into two invoices to keep your monthly reporting clean. This method is part of Amazon's settlement processes to ensure transactions are associated with the correct accounting periods.
To keep things balanced, the remaining amount from the first invoice is rolled forward into the second. This ensures your bank reconciliation stays nice and tidy.
You'll see this represented with the following descriptions:
Split month settlement – balance of this invoice rolled forward → This amount is being carried forward to the next invoice.
Split month settlement – balance of previous invoice(s) rolled forward → This amount is being brought in from the previous invoice.- Cross-marketplace adjustment → This is an adjustment where a positive balance from one Amazon marketplace offsets a negative balance in another marketplace, often lowering charges.
In both cases, you’ll see a debit and then a credit to the Amazon Reserved Balances account — so the net effect on your books is neutral.
💡 Need more control? If your accountant prefers to map these split-month settlement entries to a separate account for tracking purposes, that's absolutely possible. Just adjust the account mapping in your settings. 💡 If you're managing payouts across regions, consider reviewing cross-marketplace adjustments in your settlement report to ensure transparency.
2. Amazon-Held (Reserved) Funds
Amazon may reserve part of your payout for future release — a common practice, especially with new sellers or sudden sales spikes.
When that happens, you’ll see:
Amazon Reserved Balances – Current Reserve Amount
→ This is Amazon holding the funds (a debit into the reserved balance).Amazon Reserved Balances – Previous Reserve Amount Balance
→ This is Amazon releasing the funds (a credit out of the reserved balance).
Again, these entries should cancel each other out over time.
3. Cross-Marketplace Adjustments
In multi-country settlement scenarios, Amazon often employs cross-marketplace adjustments. For example, a positive adjustment from one region can offset a negative balance in another, balancing your overall payout while reducing total charges made to your account.