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How to reconcile Amazon settlement invoices with bank deposits in Xero
How to reconcile Amazon settlement invoices with bank deposits in Xero

What to do once you send your settlements to Xero to match them with the incoming bank deposits via your bank feed

Daniel Little avatar
Written by Daniel Little
Updated over a week ago

In this article, we'll cover:

  • Reconciling Home Currency Settlements

  • Reconciling Foreign Currency Settlements


Once you have sent a settlement to Xero you will be able to reconcile the invoice we create in Xero against the disbursement Amazon paid out to your bank account.

All you need to do is match the line on your bank statement with the invoice and you're all done.

Reconciling Home Currency Settlements

Once you have sent a settlement to Xero you will be able to reconcile the settlement against the disbursement Amazon will have paid out to your bank account.

If you need guidance on how to send your settlements to Xero from Link My Books read this help article.

The good thing about settlement-based accounting is that when you do so the amount shown on the invoice in Xero and the amount you receive into your bank from the sales channel will be exactly the same. This makes it really easy for you (or your accountant) to reconcile your bank account.

All you need to do is locate the deposit on your bank statement reconciliation in Xero and click on the OK button, as shown below:

This will work for settlements in your home currency, so if the invoice is in GBP and your bank account is in GBP too.

Reconciling Foreign Currency Settlements

Reconciling foreign currency settlements against their local currency amounts in Xero differs depending on whether you use the Amazon currency conversion service or not.

Local currency bank accounts

If you have added local bank accounts for each of the different currencies that Amazon uses then they will pay you out in those currencies without converting them. If you then have those bank accounts set up in Xero with a bank feed then the process to reconcile your foreign currency settlements is just the same as your home currency settlements. See this help article for more details on that.

Using Amazon Currency Conversion

If you have entered your home currency bank account as the deposit account for all your Amazon funds, including those in foreign currencies, then Amazon will use their Amazon Currency Conversion platform to convert your payouts into your home currency.

When these settlements are sent to Xero we will add their converted amounts to the invoice references like this:

"(€5.79) LMB-FR-1012345678-1 (converted to GBP 4.88)"

This makes it easier to find and match foreign currency settlements with their GBP bank lines.

To do so if you take the amount you received in GBP and simply search for that value in the reference search box and untick the show GBP items only box, then Xero will show the invoices which have that figure in the reference which should make it much easier to identify them.

The steps are:

  1. Click the "Match" tab

  2. Un-tick the "Show GBP items only" checkbox

  3. Copy the amount you received in GBP and paste it into the "Search by name or reference" box

  4. Click "Go"

  5. Tick the invoice and hit reconcile.

What if there are no invoices that match?

If your search provides no matching settlements there are a few things that can be:

Settlements not sent

Check on Link My Books to ensure that all settlements have been sent to Xero.

Amazon currency exchange rate updated

When Amazon convert your foreign currency payouts into your home currency they first estimate the exchange rate when the payout is generated then later they confirm it once the payout has been completed.

This means that sometimes the figure they pass to us is the estimated figure and then it is later updated. When we receive an updated figure we update the invoice reference in Xero too. This means that whilst initially, you may find no match, if you wait a few days until Amazon update the exchange rate they used for the payout, then you may well find a match.

If you have any questions about this article or feedback on how we could make it better please reach out to the support team via the blue chat icon on the bottom right of the page or via email to [email protected].

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