Guide · Amazon accounting
How to reconcile Amazon settlements in QuickBooks or Xero
An Amazon payout is the final line of a settlement, not the sales total. Reconciliation records every component first, then matches the remaining balance to the bank.
The short version
The settlement is the source. The bank is the checkpoint.
Build the entry from Amazon’s completed settlement report. When its net amount reaches the bank feed, match it to the entry already recorded.
Open the settlement
Seller Central explains the payout. The bank deposit alone does not.
Separate the pieces
Post sales, refunds, fees, reimbursements, taxes, and adjustments where they belong.
Match the transfer
The resulting settlement balance must equal the Amazon deposit exactly.
Anatomy of one payout
Make $12,600 explain $15,000.
The deposit is smaller because Amazon has already moved refunds, fees, and adjustments through the settlement.
Booking $12,600 as revenue hides $2,400. Recording $15,000 separately without clearing the settlement leaves the bank unmatched.
The four-step process
Work from report to bank.
The order matters. Starting in the bank feed is how double counting begins.
Use Seller Central as the source document and confirm the expected transfer.
Assign sales, refunds, charges, reimbursements, and adjustments to their accounts.
Create one summarized entry whose final balance equals the Amazon payout.
Match the transfer to the settlement already recorded. Do not create new sales.
QuickBooks or Xero
Same result. Different posting shape.
Both systems should preserve the settlement breakdown and leave one net balance for bank matching.
QuickBooks Online
Post a summarized journal.
The journal contains sales and deductions. A $12,600 net journal is matched to the same $12,600 bank-feed transaction.
Xero
Post the settlement balance.
A positive settlement can be represented by an invoice with settlement categories. A negative settlement may require a bill or negative posting.
Manual or automated?
Manual works until repetition becomes the job.
You can download the report, total every category, create the entry yourself, and match the deposit. Software earns its cost when review gets harder than posting.
The same reconstruction returns every payout period.
More fees, tax lines, marketplaces, and accounts create more review points.
Cash movement alone no longer explains profitability.
Automation becomes useful when settlement work delays the monthly close.
Two Amazon routes
Choose price or accounting depth.
Both tools turn Amazon activity into settlement summaries for bank matching. The split is scope.
Link My Books
Focused settlement accounting for Amazon sellers using QuickBooks Online or Xero.
A2X
Broader accounting destinations and COGS support on eligible plans.
Why COGS changes the choice
A payout explains cash. COGS explains margin.
Inventory sellers may need more than the Amazon cash movement. On eligible plans, A2X can calculate cost of goods sold by settlement period so the books show profitability alongside the payout.
Two records, one period.
cash movement
cost movement
The extra accounting depth matters only when inventory and gross margin belong in the same close workflow.
Amazon is one source
Follow the report each channel creates.
Settlement software for Amazon does not automatically reconcile processor or storefront payouts.
Before you mark it reconciled
Three balances must tell one story.
If one check fails, the settlement is not finished.
The books show sales before Amazon deductions, not the net deposit as revenue.
Refunds, fees, reimbursements, and adjustments reached the intended accounts.
The remaining settlement balance matches the Amazon bank transfer exactly.
Frequently asked questions
Before you post.
What is an Amazon settlement?
An Amazon settlement groups financial activity from a settlement period and produces a payout or balance. It can include sales, refunds, fees, taxes, reimbursements and adjustments.
Should I record the Amazon payout as sales?
No. The payout is the net result of settlement activity. Record the underlying sales and deductions, then match the resulting balance to the bank deposit.
Can Amazon settlements be reconciled in QuickBooks Online?
Yes. A settlement summary or journal can be posted to QuickBooks Online and matched to the corresponding Amazon bank deposit.
Can Amazon settlements be reconciled in Xero?
Yes. The settlement can be represented by an accounting entry in Xero and matched to the Amazon transfer during bank reconciliation.
How do A2X and Link My Books differ for Amazon?
Link My Books has a lower current entry price and focuses on QuickBooks and Xero settlement workflows. A2X supports additional accounting platforms and adds COGS on eligible plans.
Final take
Start with Amazon’s report, then prove the bank deposit.
Manual reconciliation is reasonable for a small seller. When the same mapping work repeats, choose Link My Books for a focused lower-cost route or A2X for COGS and broader accounting depth.