Amazon FBA accounting needs more than the bank deposit. Bring settlement activity, fee invoices, stock movements and advertising into the same reporting period so you can explain both the payout and the product margin.
Gather the reports before posting
- Settlement and transaction exports for each relevant marketplace and currency.
- Sales, refunds and fee invoices, with supporting VAT information.
- Inventory movement, stock and adjustment reports for each location.
- Advertising invoices and any reimbursements, loans or other account adjustments.
- Bank deposits, with the settlement identifier and conversion information.
Report names and available exports can change. Use the current Seller Central records for your account rather than relying on an old menu path or assuming one report includes every cost.
Reconcile the settlement
Separate sales and refunds from fees and other deductions. Track balances held or not yet settled instead of treating them as costs. Match each completed settlement to the bank and investigate currency differences. See the multi-channel reconciliation workflow.
Measure margin after the relevant costs
Include landed product cost, referral and fulfilment charges, storage, advertising and returns in the appropriate categories. Keep gross profit and contribution measures defined consistently. A high advertising revenue-to-spend ratio does not by itself prove profitability.
| Illustrative order, excluding VAT | Amount |
|---|---|
| Sales after refunds | £30 |
| Landed product cost | £10 |
| Marketplace and fulfilment charges | £8 |
| Allocated advertising | £5 |
| Contribution before other costs | £7 |
These are hypothetical amounts, not Amazon fee rates. Actual fees depend on your account, product and fulfilment arrangements. Use inventory and landed-cost accounting to support the cost figure.
Check VAT and overseas stock separately
Marketplace tax collection and VAT calculation settings do not settle every registration or filing obligation. Record where stock is held and moves, and assess each supply chain. Read Pan-EU stock and local VAT registrations and the cross-border VAT overview.
Reconcile stock and reimbursements at year end
Compare stock at fulfilment centres, goods in transit, removals and returns with your own records. Investigate losses, damage and reimbursements using the supporting documents. Avoid counting both an inventory asset and an adjustment for the same units without explaining the treatment.
- Reconcile each marketplace clearing account and bank balance.
- Review stock quantities, valuation and cut-off.
- Check outstanding refunds, fees, reimbursements and financing balances.
- Retain the reports behind tax workings and accounts adjustments.
Keep Vendor and Seller activity identifiable
Selling wholesale to Amazon and selling through Amazon’s marketplace are different commercial arrangements. Identify the contract, invoices, deductions and customer for each stream. They can be reported within the same entity’s accounts while remaining separately reconcilable.
For software, compare A2X and Link My Books. For hands-on help, see Amazon FBA accountants and pricing and scope.
Specialist E-commerce Accountants
General information for UK online sellers. Your accounting and tax treatment depends on your circumstances; confirm the approach for your business before acting.