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
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 with disparities that do not align upon comparison are shown in this section.
Reconciled Orders
Transactions where the amounts match in both reports are consolidated under this category.
Less Payment Received from Amazon
Instances where the payment recorded in the Disbursement report is less than the amount in the MTR report are noted here.
More Payment Received from Amazon
Transactions where the payment in the Disbursement report exceeds the amount in the MTR report are highlighted.
Bank Settlement
Following the Payment Verification, the software ensures accurate transaction settlement in the bank account. It achieves this by linking the Settlement report and bank statement and regularly verifying transaction amounts. This feature allows merchants to track settlement amounts received over time and ensures accuracy. The software also identifies transactions with pending or unreceived payments, highlighting potential errors in the settlement process.
Total Transactions
This section accounts for all Amazon transactions reflected in the bank statement.
Reconciled with Amazon
Transactions where the amount matches with the settlement report are categorized here.
Less Settlement Received
Orders where the amount in the bank statement is less than that in the settlement reports are highlighted.
More Settlement Received
Instances where the order amount in the bank statement exceeds the amount in the settlement report are recorded.
Missing in Settlement Report
Transactions reflected in the bank statement but absent in the settlement report are documented here.
The automated reconciliation software developed by Cointab effortlessly handles Amazon USA marketplace reconciliation with precision. As depicted above, the results are easily comprehensible, generated promptly, and error-free. This way the team can easily rectify discrepancies or raise disputes for missing or insufficient payments. Embrace Cointab now to analyze reports and transactions, gaining unparalleled insights into your business transactions while saving both time and money.
