Amazon is one of the biggest marketplaces online in the world. Today numerous businesses are selling online and most businesses chose Amazon as their number one e-commerce marketplace. Selling on Amazon brings great growth and profit to a company. But this happens only when a company does everything right from its side when it comes to confirming payments and settling accounts. This process of Reconciliation is very complicated. With all the different charges amazon charges for each order and different reports being provided by Amazon. It becomes very difficult to manage all the data. Also, When it comes to confirming the payments or invoices by amazon and confirming the same with the bank to verify if the amounts are as promised by amazon. The task is very lengthy and painstaking.

This is where Cointab comes into play. Cointab has made an amazing system that does all the painstaking and lengthy tasks of data handling extremely easily. All a seller has to do is upload the data to the software and the results required will be generated in no time, in an easy-to-read format. The system also adapts to any type of data with a little bit of configuration. So, companies don’t have to adapt to any changes in their data management. All a Company needs to do is to get its finance team to analyze the output and resolve any issues with Amazon.

Reconciliation process:

Data Required for Reconciliation
  • All Order
  • MTR Reports (B2B & B2C)
  • Disbursement Report
  • All Return
  • FBA Return
  • Order Level Reimbursement Report 
  • SKU master
  • Bank Statement 
We verify Amazon marketplace reports in three steps 
  1. Payment Verification
  2. Fees Verification
  3.  Settlement in Bank Account 
Let’s go through each step one by one 
Payment Verification

We first create a two-level summary of the order report. The first is based on order id and SKU. The second is based on unique order id (Amazon order summary).

In this order summary, amazon’s first level of verification will be done. Then this will be linked to the Disbursement report (payment report) and MTR report (invoice report) based on a unique order id. Then the expected amount from the MTR report will be verified against the Disbursement report.

The above Image is from Cointab Result Dashboard where we have summarized the payment verification between the Invoice Amount as per the MTR report (using Sale Invoice & Credit Notes) and the Disbursement amount as per the Disbursement report. All the unique order ids will be verified and any discrepancy between the MTR amount and Disbursement amount will be highlighted as Total Unreconciled Amount.

  • Net Sales as per MTR Reports
    • The Total Expected amount from Amazon as per the MTR report is recorder here.
  • Net Sales as per Disbursement Report
    • This is the Net payment amount as per the Disbursement report.
  • Total Unreconciled Amount
    • This is the Delta between Net Sales as per the MTR Reports (Expected amount) and Net Sales as per the Disbursement Report (Payment Amount).
  • Reconciled Orders
    • This Line item represents all the orders for which the expected amount is matching with the payment amount with a delta less than or equal to 1rupees.
  • Less Payment Received from Amazon.
    • These are the orders for which the amount received from amazon is less than what is in the MTR report.
  • More Payment Received from Amazon
    • These are the orders for which the amount received from amazon is more than what is MTR report.
  • Pending Payment from Amazon.
    • This represents the transaction where the payment is pending from amazon.
Fees Verification 

Amazon Charges Various Fees on a single order. These fees are Shipping Fee, Closing Fee, Referral Fee, Pick and Pack Fee, Tech Fee, etc.

Amazon Shipping will be verified using the Rate Card, which is created by considering the Shipping zone, SKU weights (which Is the item description given by the client), fulfilment type, and step level. 

Similarly, we verify the Closing Fee using the Closing Fee rate card. Which based on the price range of an item.

The Referral fee verification is done via referral fee percentage, which is based on the details provided by amazon.

 

Settlement amount in the bank

The amount to be settled by Amazon is verified by linking the disbursement file to the bank statement. Then the amount is verified at the bank.

The above Result section is for verification of the settlement amount in the bank, 
  • Total Amazon settlements
    • These are the total Amazon transaction in the bank.
  • Reconciled with Amazon Settlement Report
    • The transactions in the bank which are matching with the settlement amount promised by amazon. These orders are then highlighted as Reconciled orders
  • Less Settlement Received from Amazon
    • The amount received in the bank is less than the settlement amount promised by the bank.
  • More Settlement Received from Amazon
    • The amount received in the bank is more than the settlement amount promised by amazon.
  • Amazon Settlement Received but Missing from Settlement Report.
    • The transactions where the settlement Amount is received in the bank but is not reported in the settlement report are recorded.

If you want to Automate your Amazon Payment verification process, contact us now.

To see the Amazon Fee verification process Click Here.

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Reconciliation