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Our handy hints and tips for making sure your Amazon bank reconciliation is a breeze

Amazon bank reconciliation

It’s very important that all your bank accounts are reconciled on a regular basis so that you know you have complete and accurate accounting data in Brightpearl. Although Brightpearl automatically manages a lot of the transactions, there are some that it doesn’t currently do. By doing a bank reconciliation, you can check that you have accounted for everything and so have confidence in your reporting.

As well as reconciling your normal bank accounts, you should also make sure that you reconcile virtual bank accounts such as Paypal, Sagepay and Amazon – in fact anywhere that a balance of your money is being held. After all, you need to know that you’re being paid everything that you’re owed!

Here are our handy hints and tips for reconciling an Amazon bank account on Brightpearl.

1. Make sure that your Amazon sales receipts are being downloaded into a separate Amazon account on Brightpearl – not the default bank account. This makes it much easier to see the transactions and reconcile them in isolation to everything else that is going on.

2. If you’re selling on the Amazon EU platforms, make sure these all have separate accounts too. They are all managed and reported separately by Amazon and aren’t always in line with each other. It is much easier to reconcile each one separately.

3. Check that your sales receipts are downloaded automatically into Brightpearl by Amazon whenever a settlement is made to save you having to enter them all individually.

4. Ensure that the fees being recorded automatically by Brightpearl are being created in a suitable account (this should be a profit and loss account, ideally in the ‘direct expenses’ section). You can check and edit this in your settings.

5. When you set up a statement for reconciliation, make sure that your opening and closing balances are correct. Even if you are reconciling a settlement report and so expect the balance to be zero, Amazon may have retained some funds so make sure you check. You may also find that the settlement payment is outside of the range of dates for your statement and so needs to be included in the closing balance and carried forward into the next statement.

6. Brightpearl doesn’t automatically create transactions for Amazon refunds so these need to be entered manually – both the sales credit and the refund associated with it need to be added. You also need to add the refund of the transaction fee.

7. If you’re using FBA (fulfilled by Amazon), Brightpearl only records fees that are relevant to a specific order. Other general FBA fees aren’t included and these need to be added in manually. FBA inventory reimbursement amounts also need to be added manually.

8. Brightpearl doesn’t automatically record the periodic subscription fees or advertising costs paid to Amazon and these also need to be added manually.

Got any questions about Amazon bank reconciliation? Contact us for help.

Interested in our new Amazon reconciliation service? We can manage Amazon reconciliations for you and let you get on with running your business. Contact us to find out more!

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