If you're selling on Amazon North America and your business is established in the US then Amazon will send you an annual summary called "1099-K" of your processed payments for that year through the platform.

1099-K is only issued to sellers who made over $20,000 in over 200 transactions on Amazon North America.

The 1099-K can cause some confusion with sellers when it comes to reconciliation against their figures showing in Xero or QuickBooks. In this article we will cover how to reconcile your 1099-K against both the Amazon Date Range Reports and also the figures in Link My Books.

When you receive your 1099-K from Amazon it will look something like this:

The second page will include a table like this:

To validate these figures directly in Amazon, you can use the Date Range Reports page to generate summary reports for a specific date range.

To generate a date range report, follow these steps in Amazon Seller Central:

Link My Books has a built in 1099-K reconciler feature. This makes it super easy to verify that the figures being pushed to your bookkeeping system by Link My Books line up exactly with the 1099-K figures.

To reconcile your 1099-K figures with Link My Books summaries, follow these steps inside the Link My Books app:

The generated file is a CSV file showing all the lines that formed part of the Link My books summary settlements for the year that you selected.

The generated file will look something like this:

The easiest way to validate the figures is to generate a pivot table from the raw data.

To generate a pivot table in Excel, follow these steps:

Note that you may not have all the above transaction types in your file as this depends on if you have had any Busch transactions pass through your Amazon account.

When you're done it should look something like this:

As you can see the final figure showing is $118,149.31 which matches our figure on the 1099-K.

Here is a video showing the full pivot table process:

To reconcile the figures in your QuickBooks account with the 1099-K figures you can use the Transaction Detail by Account report.

To download the Transaction Detail by Account report, follow these steps in QuickBooks:

From the Reports menu, select the Transaction Detail by Account report from the For my accountant section:

Select Customize:

Set the Report period date range as the year of your 1099-K:

Under Filters select Distribution account and then check Amazon Sales and Amazon Sales Tax:

Under Filters select Customer and then check the Amazon Marketplace you wish to reconcile:

Click Run Report and you should end up with something that looks like this:

Click the export icon and select Export to Excel to download the report.

Once you have the report downloaded open it in Excel or similar and follow these steps to reconcile the data with your 1099-K:

Note that you may not have all the above transaction types in your file as this depends on if you have had any Busch transactions pass through your Amazon account.