Amazon, as one of the world’s largest online marketplaces, attracts numerous businesses due to its e-commerce potential. Opting for Amazon as the primary platform can lead to substantial growth and profits. However, it is necessary to verify payments and settle accounts to have a profitable business. The intricacies of Amazon’s USA marketplace reconciliation process, with its diverse fees for each order and a multitude of data reports, such as payment reports, tax reports, return reports, and reimbursement reports, present a unique challenge. Moreover, confirming invoices or payments made by Amazon with the bank ensures accuracy adds complexity and can result in a time-consuming task.
Cointab presents an innovative solution tailored to this scenario. Its advanced technology simplifies the tedious and time-consuming aspects of data handling. By inputting data into the software, businesses can swiftly obtain results in an easily understandable format. Remarkably, the software is adaptable to various data types, eliminating the need for businesses to overhaul their data management practices. Companies can rely on their financial teams to interpret the output, communicate concerns to Amazon, and address any inaccuracies.
Distinguishing Amazon USA from Amazon India is crucial in this context. The primary distinction lies in the customer base and domain usage. While Amazon USA operates on the domain (amazon.com) and caters to a global customer base, Amazon India uses the domain (amazon. in) with a more localized customer demographic. This global scope leads to transactions being recorded in dollars for Amazon USA, the most widely used currency for global transactions. These differences in transaction details create a different outline for the reconciliation process.
Reconciliation process
Reports Required for Reconciliation.
- Amazon All Order Report
- Amazon MTR Report
- Amazon Disbursement Report
- Amazon All Return report
- Amazon FBA Return report
- Amazon Reimbursement Report
- SKU master
- Bank Statement
Payment Verification
The initial step in the reconciliation process is ensuring the accuracy of payments reflected in the reports. This is crucial for vendors to verify that payments from Amazon are precise and devoid of any errors. To achieve this, we initiate the process by creating a two-level summary of the order report. The first level is based on order ID and SKU, while the second is based on a unique order ID, known as the Amazon order summary.
Within this order summary, Amazon undergoes the first level of verification. This summary is then cross-referenced with the Disbursement report (payment report) and MTR report, utilizing a unique order ID as the common identifier. During this comparison, the expected amount from the MTR report is meticulously verified against the Disbursement report, ensuring alignment and accuracy in payment details.
The result is displayed as follows:
Total Unreconciled Amount
Transactions that have inequalities and don’t match up upon comparison are recorded here.
Reconciled Orders
When the transaction amounts in both reports match up, they are recorded here.
Less Payment Received from Amazon
Less payment received from Amazon is recorded in the case the transaction amount in the disbursement report is less than the amount in the MTR report.
More Payment Received from Amazon
The transactions where the amount in the disbursement report is higher than the amount in the MTR report.
Bank Settlement
After the Payment Verification, the software verifies whether the transaction settlement is received accurately in the bank account or not. For this, the software links the Settlement report and bank statement and verifies transaction amounts regularly. This helps a merchant know how much settlement he is receiving from time to time and if he is receiving an accurate amount or not. Sometimes due to errors settlements are not received in the bank, the software also highlights such transactions where the payments are pending or not received.
The result is displayed as follows:
Total Transactions
The Total Amazon transactions in the Bank statement.
Reconciled with Amazon
Transactions whose amount matches the settlement report.
Less Settlement Received
Orders where the amount in the Bank statement is less than the amount in the settlement reports.
More Settlement Received
When the Order amount in the Bank statement Is more than the amount in the settlement report it is recorded here.
Missing in Settlement Report
For any transaction where the settlement amount reflects in the bank statement but is not found in the settlement report.
The automated reconciliation software made by Cointab does Amazon USA marketplace reconciliation with great ease and accuracy. As shown above, the results are easy to read and generate without any waste of time or errors. The results can also help the merchant fix errors or raise disputes for missing or fewer payments. Start using Cointab now and verify all the reports and transactions, know your business transactions better than anybody else, and save money and time.