Amazon FBA Reconciliation Report: Key Data Sources

Amazon FBA reconciliation reports are essential tools for sellers to ensure their inventory and sales records match Amazon's data, helping you recover lost profits and avoid financial discrepancies. Here's what you need to know:

• Why It Matters: FBA discrepancies can cost up to 3% of annual revenue. Regular reconciliation helps recover 2–5% of FBA costs, with 40% of reimbursements linked to inbound shipment errors.

• Key Reports:

  • Inventory Ledger: Tracks inventory events (sales, returns, adjustments) with up to 18 months of data.

  • Reserved Inventory: Monitors stock set aside for orders or processing.

  • Order and Shipment Reports: Verifies shipments and tracks discrepancies.

  • Settlement Reports: Summarizes financial transactions, from fees to reimbursements.

• Automation Tools: Software like Refunzo can automate reconciliation, saving time and recovering more fees.

Introduction to Inventory Ledger Report | Inventory Adjustment through Ledger Report

Inventory Data Sources for Reconciliation

Amazon's inventory reports provide a detailed account of every unit's journey - from arrival to removal - helping you reconcile discrepancies and safeguard your profits. Here's a closer look at the essential inventory reports and how they can assist in tracking and resolving issues.

FBA Inventory Ledger Report

The FBA Inventory Ledger Report is your go-to resource for monitoring all inventory movements. It combines six older reports into a single, streamlined tool that offers both a broad overview and detailed insights.

This report is available in two formats:

• Summary view: Displays inventory activity by SKU and disposition, including starting balances, receipts, orders, returns, adjustments, removals, and ending balances. Updates are available daily, weekly, or monthly, depending on your chosen timeframe.

• Detailed view: Offers near real-time updates on all inventory events, such as event types, quantities, locations, countries, and dispositions.

With access to 18 months of historical data, you can trace long-term trends and identify when discrepancies first occurred. The report tracks everything from sales and returns to lost or damaged items, as well as reconciliation events like misplaced inventory corrections.

To improve reconciliation accuracy, use the FNSKU field to focus on specific products. If discrepancies arise, expand your date range to include prior months, as earlier events may influence current balances.

FBA Fulfillment Monthly Inventory Data

The FBA Amazon Fulfilled Inventory Report helps ensure that the inventory you shipped to Amazon's fulfillment centers is properly accounted for. It provides detailed data on the status and quantity of inventory within Amazon's Fulfillment Network (AFN).

By comparing your shipment records with Amazon's received inventory, you can quickly identify missing units and file reimbursement claims when necessary.

FBA Reserved Inventory Data

The FBA Reserved Inventory Report highlights inventory temporarily set aside for specific purposes, such as pending customer orders, internal transfers, or processing. This report clarifies why certain stock might appear unavailable.

By regularly reviewing this data, you can improve inventory planning and catch issues like lost or misplaced items early, potentially leading to reimbursement opportunities.

FBA Inventory Adjustments Data

Inventory adjustments reflect changes made by Amazon due to various reasons, such as damage, loss, receiving errors, or disposition updates. These adjustments, detailed in the Inventory Ledger Report, directly affect your inventory levels and reimbursement claims.

Examples of adjustments include misplaced items that were later found, damaged goods identified at fulfillment centers, or corrections to inventory ownership. When reviewing this data, verify Amazon's adjustments to ensure you’ve received proper reimbursements. Keep detailed shipment records - such as itemized lists, tracking numbers, and proof of delivery - to support any claims related to discrepancies.

Using these reports regularly ensures you can quickly identify discrepancies, maintain accurate records, and strengthen your reimbursement claims.

Transaction Data Sources for Reconciliation

Inventory reports tell you what stock you have, but transaction data shows how that stock moves through Amazon's system. These reports connect your physical inventory to your financial records, making it easier to identify and address discrepancies.

Order and Shipment Reports

Transaction reports focus on tracking every unit's movement, and Order and Shipment Reports are key to verifying that sales, shipments, and deliveries match your inventory records. These reports include detailed order data, such as shipment tracking numbers, pricing, and carrier details, helping you reconcile inventory against actual customer transactions.

For example, these reports highlight mismatches between the number of units you shipped and what Amazon received. On your Shipping Queue page, any differences show up in the "Discrepancy" column. A non-zero figure here signals a potential issue that needs investigation.

These reports also break down shipment paths, including carrier tracking, which is crucial for resolving discrepancies. If issues arise, the "Units Located" column can help you distinguish between reconciled and reimbursed units. Additionally, shipment statuses are detailed, so you can see exactly where each product is in the fulfillment process. Items listed as "Amazon.Found.Bxxxxxxxxx" often indicate labeling errors or unexpected product shipments.

To stay on top of things, regularly compare "Units Expected" with "Units Located" and address discrepancies using the SKU drop-down menu. Keep proof of inventory and delivery records handy for resolving disputes.

Next, let’s explore how returns and removals provide further clarity on inventory movements.

Returns and Removal Reports

Returns and Removal Reports track what comes back to or leaves Amazon's fulfillment centers. These reports are essential for understanding inventory discrepancies and identifying opportunities for reimbursement.

Returns Reports document every customer return, including the reason for return and the condition of returned items - whether sellable, damaged, or defective. This information helps you reconcile inventory issues caused by returns and spot patterns, like quality issues or listing problems, that could lead to higher return rates.

Removal Reports offer insights into inventory removed from Amazon's fulfillment centers, including details about removal orders, shipments, and fees. There are three key reports to know:

• Recommended Removal Report: Suggests items for removal based on storage policies.

• Removal Order Detail Report: Lists all removal orders placed within a specific time period, breaking down items by order.

• Removal Shipment Detail Report: Tracks completed removal orders, including carrier information and tracking numbers.

To make the most of these reports, review them regularly to monitor your inventory status and catch issues early. Match removal requests to shipments using order IDs and SKUs to confirm that removal plans were correctly carried out. Pay close attention to requested versus actual quantities across statuses like completed, canceled, or in-process, and look for trends in specific products.

It’s also important to verify that billed fees align with shipped quantities. Investigate any unusual discrepancies, and update your inventory management system promptly when units are returned or removed. This ensures your records remain accurate and up-to-date.

Settlement and Financial Data Sources

Inventory and transaction reports give you a snapshot of what you have and how it moves, but settlement and financial data dive deeper, showing the financial impact of your Amazon FBA operations. These reports bridge the gap between your inventory's physical movement and the actual dollars involved, helping you spot costly discrepancies. Here's a closer look at how these financial reports translate transactions into revenue.

Amazon Settlement Reports

Amazon Settlement Reports act as your financial dashboard, offering a detailed breakdown of all account activity during each settlement period. They cover everything - product sales, referral fees, reimbursements, storage charges, and more. These reports are typically generated weekly or bi-weekly and include essential tracking identifiers like Order Reference ID, Seller Order ID, Capture ID, and Seller Reference ID. These identifiers are crucial for tracing transactions or resolving disputes with Amazon support.

Settlement Reports provide a comprehensive view of item prices, commissions, shipping costs, fulfillment charges, and total earnings. They also break down refunds, settlements, transfers, and reserve charges. However, there’s a catch: these reports are only available for the past 90 days. To avoid losing valuable data, download and archive them regularly. Keep in mind that disbursements to your bank account generally happen within four days of the report's generation, making timing critical for managing cash flow effectively.

To get the most from these reports, download them as soon as they’re available and open them in spreadsheet tools like Microsoft Excel or database programs such as Microsoft Access. Set up a systematic process to reconcile your transaction records with settlement data regularly. If you notice any discrepancies, contact Merchant Support within 48 hours. This approach ensures you have a clear financial picture and prepares you for deeper dives into transaction-level data.

Transaction-Level Data

For a more detailed view, transaction-level data provides the granularity needed to pinpoint specific financial discrepancies. This data helps you reconcile high-level settlement summaries with your internal financial records, ensuring that every transaction is accounted for accurately.

Transaction-level data is particularly useful for identifying issues in sales, fees, returns, and other financial elements. By examining individual transactions, you can verify that deposits align with your sales records and confirm that Amazon’s fees match its stated fee structure.

The challenges of manual reconciliation become clear in real-world cases. For example, in September 2024, a seller reported significant differences between Amazon’s Summary Report and Transaction Report. These included a $225.93 discrepancy in product sales, a stark difference in FBA fees (the Summary Report showed $188.15, while the Transaction Report reflected -$1,795.39), and mismatched shipping credits (-$400.18 in the Summary Report versus $96.08 in the Transaction Report). Even after grouping transactions by type, these differences were difficult to reconcile (Source: Amazon Seller Forums, 2024).

This level of detail can also help uncover reimbursement opportunities. To stay on top of transaction-level data, download reports regularly, cross-reference them with your internal records, and keep detailed documentation like invoices and shipment details. Accounting software can automate parts of the reconciliation process, reducing manual errors.

Pay special attention to returns and refunds - they can reveal trends that point to issues with product quality or listing details. Also, double-check that fees like referral, subscription, closing, and advertising fees match Amazon’s published rates.

For high-volume sellers, automated tools like Refunzo can simplify the process by running over 20 criteria checks to ensure every transaction is accurately accounted for. This kind of automation can save time and reduce the risk of errors in reconciliation.

Automation and Evidence Collection for Reimbursement Claims

Relying on manual reconciliation not only eats up valuable time but can also lead to missed reimbursement opportunities. By automating data collection and streamlining discrepancy detection, you can strengthen your reimbursement claims and recover more effectively. The key lies in pairing the right tools with thorough documentation to boost your recovery efforts. This approach builds on the detailed data sources discussed earlier, improving overall reconciliation accuracy.

Supporting Documentation for Claims

Amazon has strict requirements when it comes to evidence for reimbursement claims. For lost inventory claims, you'll need to provide:

• The original supplier invoice

• Shipping confirmation

• Proof of delivery (especially a Bill of Lading for LTL/FTL shipments)

• Amazon inventory reports

The Bill of Lading (BOL) is especially important for LTL or FTL shipments. It must include details such as the number of boxes, total weight at pickup, a stamp from Amazon, a signature from the fulfillment center, and a barcode.

For damaged item claims, gather product photos, condition notes, and original inventory records. Supplementing these with warehouse inspection reports and quality control documents can make your case even stronger. When dealing with customer return discrepancies, include return tracking information, original order details, customer correspondence, and return condition reports.

If you're filing fee dispute claims, you'll need to provide bank statements, a detailed breakdown of the fees, and transaction history. In August 2024, an Amazon Seller Support representative clarified that sellers must clearly identify and outline any erroneous charges when disputing overcharged fees, along with supporting invoices and fee breakdowns.

Make sure to keep clear, unedited digital copies of all documentation, including dates, SKU numbers, quantities, and prices. Each piece of evidence must directly tie to your claim and fall within Amazon's eligible claim window.

Using Automated Tools Like Refunzo

While proper documentation is essential, automation can make the entire evidence collection and claims process much easier. Once your documentation is in place, automating reconciliation ensures efficiency and reduces errors.

Automation doesn’t just save time - it delivers results. Sellers using reconciliation software report a 25% increase in recovered fees due to discrepancies found, and automation can cut time spent on manual reconciliation by up to 80%.

Refunzo, for example, uses a 21-point reconciliation process to tackle FBA issues related to shipments, payments, inventory, fees, and refunds. It automatically pulls data from your Amazon account, cross-references transactions across multiple sources, and flags discrepancies that could lead to reimbursements.

"Our goal with Refunzo is to empower sellers by simplifying a tedious process. Sellers connect their account, and the platform identifies missed reimbursements, giving them a clear picture of what's owed." – Jimi Patel, Co-founder, eStore Factory

Refunzo also simplifies evidence collection by automatically retrieving proof of delivery documents from carriers like FedEx, UPS, and Amazon Freight. This eliminates the hassle of manually contacting carriers and ensures you have the correct evidence format required by Amazon.

Refunzo offers two options for handling claims. You can use their free reconciliation service to identify discrepancies and file claims on your own. Alternatively, you can opt for their reimbursement claim service, where they handle everything for 15% of the refunded amount, capped at $5,000. Fees are only charged if your claim is successful.

Launched in November 2024 by eStore Factory, Refunzo provides sellers with a detailed analysis of potential discrepancies and generates comprehensive reports for eligible refunds. For those who prefer a hands-off approach, the platform allows sellers to delegate the entire claims process, saving time and effort.

The benefits of automation become even more apparent when you consider that 67% of Amazon sellers struggle with inventory management and shipment tracking. Automated tools can reduce operational costs by up to 30%, all while providing the consistency and accuracy that manual processes often lack.

When evaluating automated reconciliation tools, prioritize features like seamless Amazon integration, automated data matching, customizable reporting, and error detection. Regularly review reconciliation reports to spot trends, address recurring problems, and refine your processes for better efficiency over time.

Conclusion: Maximizing Reconciliation Efficiency

Getting a handle on Amazon FBA reconciliation starts with understanding how inventory, transaction, and financial data come together to paint a clear picture of your business. Reports like the FBA Inventory Ledger, Fulfillment Monthly Inventory Data, Order and Shipment Reports, and Settlement Reports each provide valuable pieces of the puzzle. But the real magic happens when you combine these reports into a unified reconciliation process. This approach allows you to compare expected outcomes with actual results, revealing areas that need attention.

Cross-checking data from multiple sources is essential for accurate reconciliation. By comparing shipped quantities with received inventory, aligning returns with inventory adjustments, and verifying financial settlements against actual transactions, you can spot discrepancies that might otherwise go unnoticed. This method not only improves accuracy but also ensures you're recovering every dollar owed to you.

Inventory reconciliation plays a big role in accurate financial reporting and overall business health. Since inventory is a major asset on your balance sheet, any errors can impact your profit and loss statements, tax compliance, and even key business decisions. Regular monthly reconciliation, backed by detailed reports that pull data from all relevant sources, keeps your finances on track and helps avoid costly mistakes.

Automation takes reconciliation to the next level by reducing errors and saving time. Instead of manually sifting through spreadsheets, sellers can use technology to quickly identify and recover lost or mishandled inventory. This not only minimizes human error but also frees up time to focus on growing your business.

Your success in reconciliation hinges on three main factors: integrating data from all sources, sticking to a consistent schedule, and using the right tools. By combining insights from inventory, transaction, and financial data, maintaining regular reconciliation routines, and leveraging automation, you'll create a system that not only protects your profits but also scales with your business as it grows.

Make the most of integrated data, regular schedules, and automation to safeguard your earnings and support your business's growth. The time to act is now - put these practices in place and set your business up for success.

FAQs

How can Refunzo improve the accuracy and efficiency of Amazon FBA reconciliation?

Refunzo simplifies the often tedious task of Amazon FBA reconciliation by automating the analysis of critical data sources like inventory, transactions, and settlements. Its system conducts more than 20 in-depth checks to spot discrepancies, missing information, or errors, cutting down on manual effort and minimizing the chances of mistakes.

With these processes automated, Refunzo doesn’t just save time - it can help recover up to 14% of lost profits by accurately identifying claims. This means sellers can maintain precise financial records while dedicating their energy to growing their business and managing their FBA accounts with ease.

What are the most common discrepancies in Amazon FBA reconciliation reports, and how do they affect my business?

When reviewing Amazon FBA reconciliation reports, the most common problems tend to fall into three categories: inventory mismatches, fee overcharges, and shipment errors. These issues can lead to financial losses, inaccurate inventory tracking, and missed chances for reimbursements.

If these problems go unchecked, they can hurt your business in several ways - cutting into profits, making financial reporting more difficult, and causing inventory shortages that might delay fulfilling orders. Tackling these errors quickly helps keep operations running smoothly, improves customer satisfaction, and ensures more accurate financial records.

Why should I regularly download and save Amazon Settlement Reports, and how does this help with managing my finances?

Downloading and keeping Amazon Settlement Reports on a regular basis is a smart move for staying on top of your financial records. These reports break down your account activity for each settlement period, making it easier to match transactions with bank deposits and catch any errors or inconsistencies.

By saving these reports, you’ll have a solid foundation for accurate record-keeping, smoother tax filing, and audit readiness. Plus, they can help you uncover reimbursement opportunities, ensuring you recover any funds you’re entitled to. Staying on top of these reports gives you better visibility and control over your business finances.

Related Blog Posts

• How FBA Reports Help Claim Refunds

• Amazon FBA Inventory Adjustments: Key Reports

• How to Download Amazon FBA Transaction Reports

• Top Metrics to Track in Reimbursement Reports