Starting your store on Amazon has its set of issues. Running it can bring in another set and that is the matter of payments, inventory, and refunds.
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For Amazon Transactional text file:- Login to Amazon Seller Central and click on Reports->Payments then select All statement as per COD or electronic payment. All statements will be visible as per the below image and download a flat-file. Now you can use this text file for Amazon Inventory & Refunds Reconciliation.
Possible inventory, payment, and refunds reconciliation issues
Amazon has a defined system of payments to sellers on its marketplace. However, there are different modes of payment such as COD, card payments, and net banking, which can affect how fast you receive payment.
- 1. A buyer may raise an issue and Amazon may hold up payment.
- 2. A product may be returned in which case there can be a hold up of payment or reversing of payment if you have already received the payment.
- 3. At the same time, such returns should reflect in the inventory. If you are in FBA program of Amazon then this can further complicate matters because returns go to Amazon warehouse.If it is saleable (buyer may have received wrong product so he returned it) then Amazon may repackage and sell but if it is damaged, it may be disposed off by Amazon.
Reconciliation becomes tough in the matter of inventory. However, you can make it easy with the help of Global Amazon Reconciliation Tool shown here on this page.
Using the Amazon reconciliation tool
It is easy to use the Amazon reconciliation tool. Simply upload the Amazon transactional text file and click on calculate. Apart from inventory, you receive the benefit of Amazon payment reconciliation with payments perfectly matched against invoices and pending invoices flagged historically.
You can view complete details of completed returns, pending returns, extra deductions as well as unsettled orders and canceled orders for each month.
You can calculate how much it is costing you when there are instances of returns and damaged products.
The tool keeps track of inventory in Amazon FBA and reconciles successful shipments against returns so you can follow up. You can know at glance the reasons why the product has been returned.
- 1. It may be defective (you may refurbish/repair and resell)
- 2. It may be partly damaged (scratches) so you can resell but at a lower price
- 3. It may be in perfect condition (buyer returned it because it was wrong color or model) so you can resell this at your market price.
- 4. It may be totally damaged or dead in which case it cannot be sold and must be written off as a total loss.
You can keep track of returns and inventory in real-time on a daily basis, whether it is inventory in your warehouse or in Amazon fulfillment centers. You can know the potential loss and the inventory reconciliation also helps you to buy or place orders in advance before stocks are exhausted.
Once returns are reconciled then you can have Amazon payment reconciliation too to know the quantity involved and the costs, as well as payments, received, reversed, and canceled/refunded or pending.
Finance, inventory, and cash flow are crucial. Do make use of the reconciliation tool every day to stay on top.
