Identifying and Correcting Discrepancies in Your Amazon Reserved Balances Account
If the balance showing in your Amazon Reserved Balances account in Xero or QuickBooks doesn’t match what Amazon is actually holding, don’t worry — this guide will help you figure out what’s going wrong and how to fix it.
Note: While this article is focused on Amazon, the same principles apply to reserved balances for other sales channels too.
Start with the Basics
Before diving into troubleshooting, double-check the following:
All your settlement invoices from Link My Books have been sent to Xero/QuickBooks
None have been deleted, voided, or duplicated in Xero/QuickBooks
You’ve followed the setup and posting instructions correctly from our help guides
If all of the above is in place, your Reserved Balances account should balance exactly to what Amazon shows as reserved. If it doesn't, keep reading — we've got you.
What Is the Reserved Balances Account Used For?
In most cases, the Amazon Reserved Balances account is used for:
Funds held and released by Amazon
Split-month settlements (only for Amazon; for other channels like Shopify, Etsy, and eBay, those are recorded in the Split Month Rollover account)
Since every debit should eventually be followed by a matching credit, identifying mismatches is just a matter of finding entries that don’t cancel each other out.
Step 1: Run the Account Activity Report
To begin reconciling:
Go to your accounting software and pull up the account activity for your Reserved Balances account (default name: LMB9 Amazon Reserved Balances)
In Xero: Go to Accounting > Account Transactions
In QuickBooks: Chart of Accounts > Find the account > Run ReportExport the report to Excel or Numbers
If you sell across multiple marketplaces or currencies, apply filters to review each one separately
Then, try to match off all transactions with corresponding debits and credits. Whatever’s left unmatched is likely where the discrepancy lies.
Common Discrepancies and How to Fix Them
1. Exchange Rate Differences
If you're working with multiple currencies, exchange rate fluctuations between the debit and credit dates may leave a small balance.
Example:
EUR debits and credits match perfectly
GBP equivalent differs by £23.23 due to FX rates
Fix: Create a journal entry to adjust the difference between the Reserved Balances account and your exchange rate gains/losses account. Your accountant can help if needed.
2. Negative Balances Rolled Over (Instead of Being Charged)
Sometimes, instead of charging your card for a negative balance, Amazon rolls the amount into the next settlement. This creates a missing credit entry in your Reserved Balances account.
Fix (Quick Summary):
Locate the negative settlement in Xero or QuickBooks
Manually add the balancing line item to account for the rolled-over amount
In Xero:
Add a line to the bill for the missing amount (e.g. -2,696.88)
Description: Small Balance Rolled over by Amazon
Account: Amazon Reserved Balances
Update the invoice total to £0.00
In QuickBooks:
Edit the journal entry
Change the “Bank Transfer” line to use Amazon Reserved Balances instead of your bank account
Update the description accordingly
For step-by-step instructions, see our [dedicated help article on rolled-over settlements]
3. Incorrect Marketplace Mapping
If you’ve mapped different marketplaces to separate accounts, make sure you haven’t accidentally mixed up entries. A debit in one marketplace’s account and a credit in another will leave both unbalanced.
Look for settlements labeled Missing Marketplace — these need to be manually allocated. See our help article on how to resolve this.
4. Opening Balance Issues
If you started using Link My Books mid-year or switched from another system, you’ll need to ensure your opening balance in the Reserved Balances account reflects what Amazon had reserved on your start date.
Example:
If you began using Link My Books on 1st Jan 2023, make sure the amount Amazon had reserved as of 31st Dec 2022 is recorded correctly. If not, your first posted settlement will be out of balance.
If you’re unsure, your accountant or our support team can help.
5. Failed Transfers
When a payment fails, Amazon may bundle it into the next settlement — this can affect the Reserved Balances account too. If things still aren’t matching up, this might be why. See our article on [failed settlement transfers] for help resolving this.
Still Not Balancing?
These are the most common causes, but not an exhaustive list. If you’ve checked:
All invoices have posted correctly
No duplicates, deletions, or voids exist
You’ve worked through the potential issues above
...and it’s still not balancing, your accountant should be able to help identify the outlier. Or feel free to reach out to our Support Team — we’re always happy to take a look with you.
Questions or Feedback?
If you need help with anything mentioned here — or if you spot something we could explain better — let us know via the blue chat icon or email us at [email protected].
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