Settlement report reconciliation procedure for Shopify merchants
For additional information about settlement reports and transaction data, see Reconciling your transaction records with the Amazon Pay settlement report. If you are not a Shopify merchant, follow the settlement report reconciliation steps in Reconciling your transaction records with the Amazon Pay settlement report instead of the steps shown below.
We recommend that you follow these steps to reconcile your accounts daily.
- Sign in to your account on Seller Central.
- Either create and download a Date Range Settlement report, or view the current data on the Manage Transactions page:
- Date Range Settlement report: From the Reports menu, click Payments. Click the Date Range Reports tab, and then create and download a Date Range Settlement report for the applicable day.
- Manage Transactions page: From the Orders menu, click Manage Transactions. Data on the page is arranged in chronological order, with the most recent transaction listed first. Note that you can adjust the number of rows shown per page and move from page to page by using the buttons at the bottom of the page.
- Make note of the information in the Seller Order ID column.
- In a separate browser window or tab, go to the Shopify Admin.
- From the left-hand navigation pane, click Orders.
- Click the Export link (it appears right underneath the Orders header).
- In the Export dialog box, accept the default settings, and then click Export orders.
An export file will download to your computer.
- Open the exported file in Excel.
- The information you need is in the Payment Reference column. To reconcile your transaction records in the Excel file with the information provided in the Amazon Pay Settlement report, match the Amazon Pay Seller Order ID data to the data in the Excel file's Payment Reference column (see the highlighted characters in the table below; you can ignore the characters that are not highlighted).
See the examples in the table below. Note that both the Shopify report and the Amazon Pay report add characters to the beginning and ending of the ID, but the digits that represent the ID number are exact matches.
Amazon Pay Settlement report
Seller Order ID
Shopify Admin Orders report
- When you find a match, where your system's report and the Settlement report both include a record of the fulfillment activity, mark that activity as reconciled.
In accounting terms, this process is typically referred to as matching accounts receivable (A/R) (created at the time of fulfillment), with undisbursed cash (in your merchant payable account). When completed, all increases to accounts receivable (sales) will be matched to undisbursed cash in your merchant payable account.
- When you find activity in your system's report that you cannot match to a line item in the Settlement report, keep that line item as part of your open match set. There are reasons why the activity might not appear in the Settlement report that you just generated, usually because the activity missed the cutoff for posting to your Amazon Pay merchant ledger, and so it was not included in the Settlement date range report you generated in Step 2. Typically, activities that missed being included in a day's Settlement report will appear in the next day's report.
- On the next day, repeat this procedure, but start by reconciling items in your open match set. Most likely, you will be able to resolve those activities by matching them to line items in the following day's Settlement report download. As you resolve activities, remove them from your open match set.
Note: if 48 hours has passed, and activity that appears in your system's report still does not appear in a Settlement report, contact Merchant Support.
Final step: cash reconciliation
In order to match the funds transferred into your bank account to the records of transactions in the Amazon Pay Settlement report, do the following:
- Use the same Settlement Date Range report that you downloaded in the procedure above.
- Download a bank statement that details disbursements into your account.
- Use the bank statement and Settlement report to match the dates and amounts transferred, making note of the following:
- In the Settlement report, the line items marked as transfers are successful transfers, and they represent transfers that were initiated in the previous settlement period.
- The Settlement report never contains line items for initiated transfers; it only contains successful transfers.
- You will notice that the dates in the Settlement report will be close to the dates noted in your bank statement, but are unlikely to match exactly.
- The transferred amount noted in the bank statement and in the Settlement report will match; however, the amount transferred may not match your expectations. This is most likely due to reserves that are held by Amazon. See the Amazon Pay reserve policy for details.
In accounting terms, this cash reconciliation process will typically result in crediting your accounts receivable and debiting your cash account.