Amazon tracks inventory adjustments to address discrepancies between actual stock levels and system records. These adjustments often result from lost, damaged, or misallocated items. Sellers must monitor these changes to recover funds, avoid stockouts, and optimize inventory management. Here's what you need to know:
Types of Adjustments: Includes lost, damaged (warehouse, carrier, customer), found, disposals, transfers, and ownership corrections.
Tracking System: Amazon uses real-time reporting with reason codes, transaction dates, and item conditions (sellable, damaged, etc.).
FBA Inventory Ledger: Replaced the older report in January 2023, offering an 18-month history of inventory activity.
Reimbursements: Sellers can claim compensation for lost or damaged inventory using detailed reports and evidence.
Automation Tools: Services like Refunzo simplify reconciliation, spotting discrepancies and managing claims efficiently.
Key Takeaway: Regularly reviewing inventory reports and using automation tools can help sellers recover losses and improve inventory accuracy.
Introduction to Inventory Ledger Report | Inventory Adjustment through Ledger Report
Types of Inventory Adjustments Amazon Tracks
Amazon keeps a close eye on various types of inventory adjustments triggered by fulfillment events. Knowing these categories can help you spot patterns and uncover potential reimbursement opportunities in your account.
Lost Inventory
Lost inventory can happen during inbound shipments, warehouse transfers, or even while picking items for orders. To pinpoint where the loss occurred, Amazon assigns specific reason codes, which also help determine who’s responsible and whether reimbursement is an option.
When inventory is marked as lost, Amazon applies a negative quantity adjustment to your account, reducing your available stock. These adjustments are flagged with disposition codes like "Lost" or "Missing", making them easier to track in your reports. Let’s move on to how physical damage impacts inventory.
Damaged Inventory
Damaged inventory refers to items that are unsellable due to damage. Amazon categorizes these adjustments using condition codes, including:
Warehouse Damaged: Items damaged during storage or handling.
Carrier Damaged: Damage that occurs during transportation.
Customer Damaged: Items returned by customers in poor condition.
Defective: Issues stemming from manufacturing defects.
When damage happens under Amazon’s control, they usually take responsibility and reimburse sellers based on the fair market value of the affected items. Beyond loss and damage, there are other types of adjustments that play a crucial role in keeping inventory records accurate.
Other Adjustment Types
Found Inventory: When Amazon locates previously lost items, they’re added back to your available inventory, often highlighting tracking errors.
Disposal Adjustments: These occur when unsellable inventory is destroyed or when sellers request disposals.
Transfer Adjustments: Used to track inventory movements between fulfillment centers without altering overall stock levels.
Removal Order Adjustments: Applied when inventory exits Amazon’s network through return or disposal requests.
Inventory Ownership Corrections: These adjustments fix allocation errors or disputes over ownership. For example, on May 29, 2025, Amazon removed about 800 units of ASIN B0CH7W6G6P from a seller’s inventory due to an ownership correction with a sellable disposition. However, the seller hadn’t been properly reimbursed for these units.
Each of these adjustment types ensures your inventory records remain accurate, helping you manage stock effectively and identify reimbursement opportunities when needed.
How Amazon Records Inventory Adjustments
Amazon keeps comprehensive records of every inventory adjustment, creating a clear system for tracking and analyzing your FBA data.
Understanding the FBA Inventory Adjustment Report
Amazon compiles inventory adjustment information in the Inventory Ledger report, which replaced the older Inventory Adjustments report on January 31, 2023. This report offers an 18-month history of inventory activity, giving sellers a detailed view of past transactions.
The Inventory Ledger includes essential details for each adjustment, such as the FNSKU (Fulfillment Network Stock Keeping Unit), ASIN, MSKU (Merchant SKU), and product title. It notes whether the adjustment increased or decreased your inventory, records the quantity change, and provides a reference ID to identify the transaction.
A critical part of this report is the reason codes, which explain the cause of each adjustment. Alongside these, the report logs the date of the adjustment and the specific fulfillment center where it occurred.
Another key feature is the distinction between reconciled and unreconciled quantities. Reconciled quantities are linked to other inventory events, while unreconciled quantities remain unmatched, often requiring further investigation.
How to Access and Read Reports
To access the Inventory Ledger report, log in to Seller Central and select the Detailed view to review individual transactions. Use the Event type dropdown menu and select Adjustments to filter out unrelated activities like shipments or receipts. You can also set a specific date range or enter custom dates for a more focused search.
Once your filters are set, click Generate report to view the data. Each adjustment appears as a separate line item, showing all relevant details. Pay close attention to the Reason column, which provides codes or descriptions explaining why each adjustment occurred.
If you come across discrepancies or entries labeled Unknown events, consider extending your date range. Sometimes, transactions span multiple reporting periods, and a broader timeframe can help clarify these gaps.
Inventory Disposition Categories
Understanding inventory dispositions is essential for assessing the condition of your stock. Amazon categorizes inventory based on its usability and condition, helping you keep track of what’s sellable and what’s not.
Sellable inventory includes items that meet the description in your listing and are ready for customer orders.
Defective inventory covers items that don’t match the listing description but aren’t visibly damaged. This could include recalled products or items with functional problems.
Carrier damaged refers to items harmed during transportation.
Warehouse damaged inventory includes items damaged while stored or handled at Amazon’s fulfillment centers.
Amazon also tracks Distributor damaged inventory and uses specific disposition change codes to show when items are reclassified. For example, if a sellable item is damaged at a fulfillment center, you might see a negative adjustment with code "E", followed by a positive adjustment with code "P", indicating it has been moved to the warehouse damaged category.
Using Adjustment Data for FBA Reimbursements
Inventory adjustment reports hold crucial details that can help you recover money from Amazon when discrepancies arise. Knowing how to analyze this data and file claims correctly can help you reclaim funds that might otherwise slip through the cracks.
Finding Discrepancies for Reimbursement Claims
The first step in filing successful reimbursement claims is thoroughly reviewing your inventory adjustment reports. By analyzing your inventory ledger, you can pinpoint discrepancies that may translate into recoverable losses.
Start by comparing your shipping records to Amazon's received quantities. For instance, if you shipped 100 units but Amazon only recorded receiving 95, that five-unit shortfall could be a valid claim. Look closely at differences between your shipping manifest and what Amazon processed, especially if shipments show unusual status updates or unexplained inventory changes.
Pay particular attention to adjustment entries flagged with reason codes like "warehouse damaged" or "carrier damaged." These often qualify for reimbursement, especially if the damage occurred after Amazon took possession of your items in good condition.
Another red flag is adjustment pairs - where a negative adjustment (removal from sellable inventory) is followed by a positive one (reclassification as damaged). If the damage wasn’t caused by you, this could also warrant reimbursement.
To stay ahead of potential losses, set up a regular review schedule. Weekly checks on your inventory and payment data can help you identify issues within Amazon’s 60-day reimbursement window. Missing this window means losing the chance to recover funds.
Warning Sign | What to Check | When to Check |
|---|---|---|
Quantity Differences | Shipping manifest vs. received units | When the shipment is received |
Unusual Shipment Status | Shipment status updates | During routine reconciliation |
Unexpected Inventory Changes | Inventory records vs. actual stock | Regularly during periodic reviews |
By systematically tracking these discrepancies, you can lay the groundwork for effective reimbursement claims.
Best Practices for Filing Claims
Once discrepancies are identified, filing claims requires precision and thorough documentation. Amazon’s investigation process relies heavily on the evidence you provide, so being well-prepared can significantly improve your chance of success.
Keep all relevant records, including shipping manifests, tracking details, proof of delivery (POD), signed bills of lading (BOL), packing slips, and pre-shipment photos, to back up your claims.
It’s best to wait 30–45 days after spotting a discrepancy before filing a claim. This buffer gives Amazon time to resolve temporary system errors and ensures you’re not filing prematurely for issues that might self-correct.
When filing claims through Seller Central’s Case Log, include essential details like the shipment ID, proof of ownership, and proof of delivery for every claim.
"Amazon's FBA reimbursement policy is designed to compensate sellers like you for various FBA (Fulfillment by Amazon) discrepancies, such as unaccounted or damaged inventory, incorrect fees, and more."
– GETIDA
For damaged inventory, aim to file claims 60 to 120 days after issuing a customer refund or replacement. This allows Amazon's system to fully process returns and update inventory records, giving you a clearer picture of actual losses.
Stay engaged throughout the claims process. Monitor your claims regularly and respond quickly if Amazon requests additional documentation. While investigations typically take 30 to 45 days, staying proactive can help speed things along.
Claim Type | Required Documentation |
|---|---|
Lost/Damaged Inventory | • Proof of Delivery (POD) |
Fee Disputes | • Product dimension records |
Inventory Discrepancies | • Shipment tracking details |
Given the complexity of managing claims, many sellers turn to automated reconciliation tools to simplify the process. Manually tracking adjustments and filing claims can be overwhelming. Automated tools can help you identify discrepancies more efficiently and maintain better records.
For instance, services like Refunzo provide free lifetime FBA reconciliation with over 20 criteria checks, automatically flagging potential reimbursement opportunities that might otherwise go unnoticed. Refunzo generates detailed reports on possible claims, allowing you to either file them yourself or let the platform handle the process for a capped commission fee of 15% of the refunded amount or $5,000, whichever is lower. This way, you can focus on growing your business while the platform takes care of the nitty-gritty details.
Tools for Automating Inventory Reconciliation
Manually reconciling inventory is not only time-consuming but also prone to errors. Automation, on the other hand, simplifies the entire process, from tracking reports to spotting discrepancies and filing claims. Here's why automated reconciliation is a game-changer.
Benefits of Automated Reconciliation
Automated tools solve many of the challenges that come with manual tracking. For instance, while manual reconciliation can take over 10 hours each week, automation cuts this down to just minutes a day. These tools also reduce human error by applying consistent criteria checks across all your data. As your business grows, automated systems can easily handle hundreds or even thousands of transactions every month.
Another big advantage? Automated systems can significantly improve reimbursement recovery rates. They catch discrepancies that might slip past human reviewers and ensure your documentation meets the required standards. Compare this to manual methods, where claim approval rates hover around 40% due to documentation issues - automation can dramatically improve those numbers.
Criteria | Manual Reconciliation | Automated Reconciliation |
|---|---|---|
Time Investment | High (10+ hours/week) | Low (minutes/day) |
Error Rate | Higher error rate | Lower (algorithm-driven) |
Scalability | Limited by human workload | Easily handles large volumes |
Recovery Impact | Missed claims cost 1–3% of revenue | Improved recovery rates |
These benefits highlight why tools like Refunzo are becoming essential for sellers looking to streamline their reconciliation process.
Refunzo: Free FBA Reconciliation Service
Refunzo offers a lifetime free reconciliation service, making automation accessible to sellers without adding extra costs. Using Amazon's official Selling Partner API, Refunzo securely connects to your account and analyzes your data in real time. It performs over 20 criteria checks to spot potential reimbursement opportunities, scanning your entire FBA history and keeping an eye out for new issues.
"Refunzo is the most comprehensive state-of-the-art FBA reconciliation application developed by Amazon consultants at eStore Factory... It is an absolute game-changer because of i) Its lifetime free do-it-yourself FBA reconciliation capabilities, ii) It has the option to log your own refund claims with Amazon & pay no commission, iii) It provides a reconciliation of 21 criteria which makes it the most fine-tooth combing solution for discrepancies, and iv) A state-of-the-art technology SP-API connectivity to access real-time Amazon data." - Brijesh Singha, the co-founder of eStore Factory
Refunzo gives you two options: you can use their detailed reports to file claims yourself at no cost or let the platform handle the entire process. If you choose the latter, Refunzo prepares detailed claims with order IDs, ASINs, dates, and proof of issues, then follows up with Amazon until the investigation is resolved. The commission is seller-friendly - 15% of the reimbursement received, capped at $5,000. And you only pay when you successfully recover funds.
With a 4.5/5 rating from 27 reviews, sellers have praised Refunzo for recovering funds tied up in lost or damaged inventory, often uncovering tens of thousands of dollars in missed reimbursements.
When to Use Refunzo
Refunzo is especially useful for sellers facing growing business complexities. If you're shipping multiple products weekly, managing inventory across various fulfillment centers, or dealing with high-value items where losses can hit your bottom line hard, automated reconciliation becomes a must.
High-volume sellers, processing hundreds of transactions monthly, will appreciate Refunzo's ability to scan for discrepancies across large datasets. For those short on time, Refunzo's hands-off approach means it works in the background, flagging issues or even handling claims entirely on your behalf.
Sellers operating in multiple Amazon marketplaces also benefit from Refunzo's ability to track inventory across regions. And if you've experienced losses due to damaged shipments, lost inventory, or fulfillment center mistakes, Refunzo's historical scanning can help recover funds you may have missed.
Conclusion
Amazon's robust reporting system meticulously tracks every inventory movement, making it easier to identify discrepancies and recover lost revenue.
Key Takeaways
Amazon's approach to tracking lost, damaged, and adjusted inventory provides sellers with opportunities to uncover reimbursement claims and spot operational inefficiencies. By monitoring these reports regularly, sellers can detect patterns that might point to issues like packaging defects or fulfillment center errors.
This level of tracking doesn't just help recover money - it also shines a light on inefficiencies that, when addressed, can enhance overall business operations. Reviewing adjustment data often uncovers recurring problems that, if resolved, can prevent future losses and improve performance.
Automation tools, such as Refunzo, simplify the reconciliation process. With over 20 criteria checks and real-time monitoring, these tools catch discrepancies that manual reviews might overlook. Plus, Refunzo's lifetime free reconciliation service ensures that businesses of any size can access this time-saving technology.
Armed with these insights, sellers can refine their processes and make informed operational improvements.
Next Steps for Sellers
To protect profits and manage storage costs, adopt a monthly review schedule. Conducting quarterly inventory audits can also help catch issues early before they escalate.
Make it a habit to align your internal records with Amazon's data to quickly identify discrepancies. When problems arise, investigate shipping and receiving processes thoroughly before filing cases with Amazon Seller Support.
Leverage automation tools like Refunzo to streamline reconciliation and gain real-time insights. As your business scales, manual tracking becomes less feasible and more prone to errors. Tools integrated with Amazon's Selling Partner API can handle large transaction volumes with ease, ensuring accuracy and efficiency.
When discrepancies occur, focus on understanding their root causes. Rather than simply filing reimbursement claims, dig deeper into why adjustments happened. Implementing preventive measures - like improving packaging, strengthening quality control, or fine-tuning supplier relationships - can help minimize future issues and set your business up for long-term success.
FAQs
How can sellers use Amazon's FBA Inventory Ledger to track inventory issues and request reimbursements?
Sellers can keep a close eye on their inventory adjustments using Amazon's FBA Inventory Ledger, which helps pinpoint issues like lost, damaged, or misplaced items. To dive into the details, head to the Reconciliation Report in Seller Central by navigating to Reports > Inventory. This report offers a breakdown of inventory changes, making it easier to cross-check with your own records and uncover any discrepancies.
If you spot something off, you can take action by generating the Inventory Ledger Report for a specific date range. Review the adjustments carefully to identify any claims that might qualify for reimbursement. Once you've flagged the discrepancies, use Amazon's reimbursement tools to file your claims. Regularly reviewing these reports not only keeps your inventory tracking accurate but also helps you recover losses from mishandled items at Amazon warehouses.
What are the advantages of using automation tools like Refunzo for inventory reconciliation and reimbursement recovery?
Automation tools like Refunzo take the hassle out of inventory reconciliation, making it easier to recover reimbursements. By automating this process, these tools help minimize human errors, save valuable time, and quickly flag inventory discrepancies. This allows sellers to shift their focus from tedious manual tracking to scaling their business.
Refunzo also simplifies the reimbursement process by pinpointing claims for lost or damaged inventory and automating their submission. This boosts the chances of recovering funds owed by Amazon, improving cash flow and increasing revenue. With over 20 criteria checks and detailed reporting, Refunzo ensures the reconciliation process is both thorough and efficient.
How can sellers avoid inventory discrepancies and improve their inventory management on Amazon?
To keep inventory accurate and streamline management, sellers should make it a habit to audit their stock regularly and cross-check reports for any discrepancies. Staying on top of this helps catch and resolve problems early, before they grow into bigger challenges.
Additionally, leveraging dependable inventory management tools and maintaining clear, consistent communication with suppliers can go a long way in avoiding mistakes and ensuring stock levels stay precise. These strategies not only boost efficiency but also create a smoother, more reliable selling process on Amazon.
Related Blog Posts
Stay updated by subscribing
to our newsletter.
Stay informed and up-to-date with the latest news and updates
from our company by subscribing to our newsletter.