Reconciling Amazon Payments

Eshopbox helps you reconcile fees charged and payments received from Amazon against your Amazon orders. Eshopbox helps you in payment reconciliation of multiple business models in Amazon:

• Amazon Easyship

• Amazon Prime
  
  

In this article, you will learn:

• How to configure Amazon fees and payment terms in Eshopbox

• How to upload Amazon payment report in Eshopbox

• How Eshopbox reconciles Amazon fees

• How Eshopbox reconciles Amazon payments

Follow the below steps to start reconciling Amazon fees and payments in Eshopbox:

1. Configure fees

The first step is to configure your Amazon fee in the Eshopbox workspace. Learn how to configure fees in Eshopbox.

2. Configure Amazon payment cycle

You need to configure Amazon’s payment (remittance) cycle in Eshopbox. The frequency at which Amazon makes payments to you would be based on your agreement with Amazon and your seller tier. Learn how to configure payment terms.

3. Book payments

You need to upload Amazon payment reports in Eshopbox to initiate the reconciliation by following the below instructions:

Download Amazon payment report

Follow the below steps to download the Amazon payment report:

• Log in to the Amazon seller account.

• Navigate to Reports > Payments.

• Click on 'All Statements'

• Select either ‘Electronics transaction’ or ‘COD transaction and non-transaction fees’.

• Click on download flat-file v2 corresponding to the payment that you want to download.

• Now, navigate back to the Eshopbox workspace > Payments.

• Click on ‘Add payment’ on the top right corner of your screen and upload the payment report.

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Amazon has two payment categories based on the customer's mode of payment. You have to download reports for both these categories:

• Electronic transactions: These are prepaid orders for which the customer has made an electronic transaction using a credit card, debit card, UPI, and more.

• COD Transaction and Non-Transactional Fees: These are postpaid orders for which the customer has paid using cash on delivery or digital wallets while receiving the product.

Reading Amazon payment report

If you wish to read the Amazon payment report in flat-file v2 format, you need to use Microsoft excel. Each row in the report represents the amount settled corresponding to a particular order. The record will either corresponds to payment against an order ID or expense incurred against an order ID.

In the first line of the report, you can find ‘settlement ID', ‘deposit date’, and ‘total amount’. The corresponding values are required while uploading the payment report in your workspace. These values correspond to ‘bank reference ID’, ‘fund transfer date’, and 'fund transfer amount’. The amount you receive in your bank account is the fund transfer amount. The bank reference ID is the unique transaction identifier, and the date of fund transferred to the seller's bank account is the fund transfer date.

Eshopbox considers a combination of customer order ID & ESIN as unique reference ID for Amazon payment reconciliation. All transactions are recorded against this unique reference ID. Eshopbox will create a ‘suspense’ record if there is a difference between the settlement amount and the sum of payment and expenses calculated by Eshopbox from the payment report.

4. Reconcile expenses

Eshopbox will match the provisional fee with the actual fee deducted by Amazon and assign it one of the following fee statuses:

• If the fee deducted by Amazon is the same as the provisional fee. The fee status will be ‘Reconciled’.

• If the fee deducted by Amazon is more than the provisional fee, the fee status changes to ‘Disputed’.

• If for any reason Eshopbox is not able to calculate the provisional fee and Amazon has deducted this fee, the fee status changes to ‘Failed'.

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5. Reconcile payments

Eshopbox will match the expected payment (invoiced amount) with the actual payment received from Amazon and assign it one of the following payment statuses:

• If the payment received is equal to the provisional amount, the payment status will be ‘Paid’.

• If payment received is less than the provisional amount, the payment status will be ‘Awaiting payment’. When no payment is received against an order, the payment status will be ‘Awaiting payment’ with a partial tag.

• If you receive payment and then the same amount is refunded, the payment status will be ‘Refunded’.

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Frequently asked questions:

Why are you charged with "Shipping chargeback" from Amazon?

When you are selling on Amazon prime, you cannot define the shipping charges charged to the customer. Amazon will charge a shipping fee at its own discretion. The invoice amount is the sum of the selling price of the product, shipping charges and shipping tax. When you receive payments from Amazon, it should be equal to the invoice amount. But as the shipping chargeback is not to be recovered by you, it will be deducted by Amazon with the name “shipping chargeback”. Learn more.

Let us understand with an example; the price of the product was INR 2000. Amazon charges INR 100 as a shipping charge from the customer. The invoice amount is the sum of the product price and shipping charge, i.e. INR 2100. You will receive INR 2100 against this order. But as INR 100 (shipping charges) is not to be recovered by you, it will be deducted by Amazon with the name shipping chargeback in the payment report.

In the below screenshot, you can see that shipping and shipping tax INR 80 (67.80+12.20) is included in the sale amount. The shipping amount is not to be recovered by you. This amount is deducted by Amazon while providing payment. Here, Amazon deducts INR 80 as shipping and shipping tax.

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