How to enter merchant fees and orders from Amazon

Hello @barlowmerc,

Welcome to the Community. I'm here to assist with entering merchant fees and orders from Amazon.  

One option that you have is to record the merchant fees from Amazon with the deposit. Here's how:

First, record the payment:

1. Click the Plus icon and choose Receive Payment. 
2. Enter the necessary information.
3. Select Undeposited Funds as the Deposit account.
4. Click Save and Close.

Then, record the deposit:

1. Click the Plus icon and then Bank Deposit.
2. Place a check-mark in the box next to the payment you want to deposit.
3. Enter the fee charged for processing the payment with a negative number in the Add funds to this deposit section.
4. Choose the expense account used to track the fees. 
5. Double check that the deposit amount is correct.
6. Click Save and Close.

This method will track the processing fees for transactions and allow the deposit in QuickBooks to match what was deposited into your bank account by Amazon. I'm including a couple of articles that contain further insight into this:

• Can QuickBooks Online Directly Integrate with Third-Party Merchant Services?
• Enter a Bank Service Fee While Using a Third-Party Merchant Service

As always, since all businesses are unique, you may wish to reach out to your accountant for additional guidance to ensure that the best method for tracking sales through Amazon is employed.  

The Community is always here and has your back. I hope this response finds you with a smile.
 

Hi David,

This is very helpful information.

The biggest things we are trying to figure out is:

What we are spending on product?

How much are we getting back?

The # of units/week we are selling?

The revenue we are making?

We use Informed.co and Amazon Seller Central. Do we need to track every sale per person and enter in the information you shared? Or is there a different way to do what we need in Quickbooks?

Thank you so much for your help!

Hello again, @barlowmerc,

I'm glad that you found the response helpful and you're most welcome.

I can see why you'd like to ascertain the information that you've mentioned. QuickBooks Online (QBO) offers multiple reports that can assist with determining information, such as the number of units sold and how much revenue was made. The following article contains further insight about reporting in QBO: Available Reports in QuickBooks Online.

The method described in the earlier post is a general process for tracking fees. While I'm not completely familiar with all of the details of Amazon Seller Central, however, my understanding is that certain options charge a fee based on storage and selling of products. Whether it would be best to enter every sale individually or in bulk is something that you may wish to consider asking your accountant. Additionally, as regulations may vary in your state, they would be able to help ensure the optimum setup for your business' goals and needs.

As you've mentioned that you're new to QuickBooks Online, I want to ensure that you get the most out of the software and am including some tutorials designed to help a new user get acclimated to the software. They can be accessed at the following link: QuickBooks Tutorials.

Please let me know if I can be of further assistance. Best wishes. 

Hi @barlowmerc ,

Greetings,

Amazon settlement reports contain the fees associated and those should be entered as expenses in QuickBooks. a Paid bill or Cheque can also be created.

Hello @barlowmerc,,

  Just a small thing, in case you also would like to automate the process of manual data entry to QuickBooks, you can use any importing app to do this, for example Business Importer (it supports CSV or Excel sheets). They can import invoices in bulk and then link payments to those invoices automatically during the import, it is quite convenient. 

Hello @barlowmerc,
 Just in case you want to automate your books, you can try apps that record transactions into QuickBooks automatically. For example, the Synder app. There are 2 ways, it can work for you: 1. If you have invoices created in QuickBooks, then Synder can automatically link orders from Amazon to them. As the result, a paid invoice + receive payment, as well as expense for any Amazon fees are recorded in your books. 2. If there are no invoices on the QuickBooks side, the app records paid orders from Amazon as sales receipts and creates an Expense for Amazon fees. 
 As a benefit, it records all necessary details such as item/customer name, description, taxes, etc.
 The support team is available over the phone, online chat, and email, so if you feel like you need assistance with setting up the app for your specific flow, feel free to contact them.

Hi there, 

I would like to enter my monthly sales and expenses from amazon into Quickbooks Online as well. However, some periods, my expenses are more than my sales. I also track inventory in quickbooks (so I create sales receipts for each period). I can not create a new bank deposit for these periods, because I am actually paying amazon, and it is debiting my bank account. How do I go about recording these expenses properly? And how do I record the sales after I create the sales receipt? Please let me know, thanks!!

Thank you for visiting us here in the Community, @HGSSam. I can help you with how to record sales and expenses in QuickBooks Online.

When you receive payments, learn how to record it in QuickBooks Online. Here’s how:

1. On the left pane, + New and choose Sales receipt.
2. Select a Customer from the dropdown.
3. Enter the sales details, and payment method.
4. Enter the items for the products and services.
5. Once done, click Save and Send to email the receipt.

To move money to another account, use a Journal Entry to balance your books. Here’s how:

1. Select + New.
2. Select Journal entry.
3. On the first line, select an account from the Account Depending on if you need to debit or credit the account, enter the amount in the correct column.
4. On the next line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
6. Enter the information in the memo section so you know why you made the journal entry.
7. Select Save and new or Save and close.

If you're unsure of the accounts to use, I suggest consulting an accountant. They can advise you on the steps to take, and also keep your books accurate.

In addition, I got you this article that will help you manage your expenses in QuickBooks Online.

Leave us a message for any further assistance needed. Have a good day ahead!

Can you explain this a bit more?  I am new to QuickBooks and am an Amazon seller.  My Amazon Sales and Shipping Income automatically are being imported into QuickBooks as Income and posted to "Undeposited Funds."  I am posting my Amazon Seller Fees manually to "Undeposited Funds."  I don't know how to match these to the deposit (which is the net of these income minus fees) when it shows up in my checking account in QuickBooks' Banking??  Thanks

Good day, Karen361. 

I'm here to ensure you can successfully match your transactions in QuickBooks Online (QBO).

Let's get your deposited transactions to match QuickBooks Online (QBO) correctly to avoid double entry.

Here's how:

1. In QBO, go to the Banking menu at the left pane to get to the Banking page.
2. Proceed to the For review tab.
3. Click the transaction and select Find a match.
4. On the Match transactions page, locate the deposit and check it.
5. Hit Save to complete.

For more information, consider checking out this article:  Categorize and match online bank transactions in QuickBooks Online.

Also, I would encourage you to reconcile your accounts every month. This ensures they always match your bank statements and detect all possible errors accordingly. For the step-by-step guide, please check out this article: Reconcile an account in QuickBooks Online.

Please keep me posted in the comments if you have other banking concerns and questions about matching deposit transactions in QBO. I'll gladly help.