Keeping track of your Amazon FBA reports is essential for ensuring your business runs smoothly and that you’re not losing money due to errors or discrepancies. By regularly cross-checking these reports, you can identify missed payments, overcharges, or inventory issues, all of which can impact your bottom line. Here’s a quick breakdown of the process:
Key Reports to Focus On:
Settlement Reports: Track sales, fees, refunds, and payouts.
Inventory Reports: Monitor stock levels, adjustments, and reimbursements.
Transaction and Refund Reports: Dive into order details and returns.
Steps to Cross-Check:
Download and organize your data from Amazon Seller Central.
Match sales data with payments received.
Verify fees and charges against Amazon’s fee schedules.
Reconcile inventory to identify missing, damaged, or misplaced items.
Review returns and refunds for accuracy.
Fixing Discrepancies:
Look for common issues like missing inventory, incorrect fees, or data errors.
Submit claims to Amazon with proper evidence (e.g., invoices, shipment IDs).
Automation Tools: Tools like Refunzo can simplify this process by automatically identifying errors and filing claims for a small percentage of recovered funds.
Regular reconciliation saves time, reduces errors, and ensures you recover money Amazon may owe you. Whether you’re handling this manually or using automation, staying on top of your reports is critical to maintaining financial accuracy for your FBA business.
How to Easily Reconcile with Amazon Settlement Reports - Webinar
Key Amazon FBA Reports You Need to Know
Getting familiar with the key Amazon FBA reports is a must when it comes to spotting errors and reconciling your accounts accurately. Amazon Seller Central offers a wide range of reports, but focusing on a few essential ones can make your reconciliation process smoother and more effective. Knowing which reports to prioritize and understanding the data they provide will save you time and help you catch inconsistencies faster.
The timing of these reports varies. Some, like near real-time reports, update every 30 minutes, while daily reports refresh every four hours. This timing is crucial when tracking recent transactions or monitoring inventory changes.
Settlement Reports
Settlement reports are the cornerstone of your reconciliation efforts. They give a detailed breakdown of your account activity over a specific settlement period. Amazon automatically generates these reports, often covering bi-weekly intervals based on your seller agreement.
These reports include everything from sales and refunds to fees, payouts, and adjustments. For instance:
The sales section shows your total revenue.
The fees section breaks down costs like fulfillment, storage, and Amazon's commission.
The adjustments section highlights reimbursements for lost or damaged inventory.
When reconciling, go through the report line by line, matching the details with your system's records using unique identifiers. This precise approach helps you uncover issues like missed payments, incorrect fees, or unrecorded transactions. Settlement reports also display the payout amount Amazon sends to your bank, making it easier to confirm that deposits align with your expectations.
Once you've reviewed the settlement data, move on to inventory and transaction reports for a complete reconciliation.
Inventory Reports
Amazon's Inventory Ledger report is a one-stop resource for tracking your inventory. It combines data from earlier inventory reports into a single, detailed view.
This report monitors stock levels, inbound shipments, and removals. It’s especially important to review quantity adjustments, which reflect changes in inventory due to lost, damaged, or misplaced items. Each adjustment includes the quantity change, the reason for it, and whether a reimbursement was issued. Additionally, disposition codes classify the condition of returned or adjusted items, helping you determine if reimbursement is warranted.
For a full reconciliation, pair this report with transaction and refund data to get a clearer picture.
Transaction and Refund Reports
If settlement reports give you the big picture, transaction and refund reports dive into the finer details. These reports are vital for reconciling individual orders and ensuring every sale, return, and refund is accurately recorded in both Amazon's system and your financial records.
Transaction reports detail order-level information, such as SKU-specific fees and discounts, while refund reports focus on the financial impact of returns and processing fees. Together, they help you identify discrepancies, such as unexpected fee deductions that might affect your payouts.
How to Cross-Check Amazon FBA Reports Step by Step
Once you’re familiar with the key types of Amazon FBA reports, the next step is to reconcile them accurately. By systematically reviewing and comparing your reports, you can catch any discrepancies and ensure your records are up to date. Here's how to do it.
Download and Organize Your Data
Start by logging into Seller Central and downloading your settlement, inventory, and transaction reports for the period you’re reviewing. Many sellers prefer reconciling on a bi-weekly basis to align with Amazon’s payout schedule.
Organize these reports into clearly labeled folders by type and date. For example, naming a file as "Settlement_Report_2025-07-01_to_2025-07-14.csv" makes it easy to locate and reference later. Consistency is key here - both in naming conventions and in the timing of your downloads, as report updates can vary. Once everything is neatly sorted, you’re ready to dive into reconciling sales and payments.
Compare Sales and Payments
Match your sales data to the payments you’ve received. Keep in mind that order-based and shipment-based numbers may not always align perfectly. Group your transactions into categories like orders, refunds, fees, and adjustments, then total each category. Many sellers rely on the settlement report as their primary reference since it directly ties to bank deposits, using it to cross-check other reports for discrepancies.
Be aware of time zone differences - Amazon typically records transactions in Pacific Time. This means orders placed near midnight in your local time zone might appear in a different reporting period. Once you’ve confirmed payment accuracy, take a closer look at the fees.
Check Fees and Charges
Amazon deducts various fees, including fulfillment fees, storage fees, and referral fees, which can fluctuate over time. Cross-check every fee in your settlement report against Amazon’s published fee schedules to ensure accuracy. This step is crucial to avoid losing revenue to unnoticed overcharges.
Keep in mind that monthly summaries often show marketplace tax as a deductible amount, while transaction reports may display this differently. Understanding these presentation differences will help you distinguish between formatting variations and actual errors.
Pay special attention to unexpected fees or charges that seem out of sync with your sales volume. For example, storage fees can vary seasonally or with changes in inventory levels, so compare these charges to your inventory data for any inconsistencies.
Match Inventory Records
Inventory reconciliation requires comparing your FBA Inventory report with your own records to identify missing, damaged, or misplaced items. Look at metrics like delivered and offloaded quantities to spot discrepancies. Regularly reconciling your inventory helps you maintain a strong Inventory Performance Index (IPI) and address potential issues before they impact your storage limits.
Use the FBA Inventory report to track inventory age, as storage fees and removal policies vary by age range (e.g., 0–90 days, 91–180 days). For items in fulfillment centers for over 180 days, Amazon may automatically remove them if they remain unsold, leading to inventory adjustments. This is especially important if you’ve opted into automated removals.
Review Returns and Refunds
Returns and refunds can complicate reconciliation since they affect both your financial records and inventory levels. Verify that each return is accurately reflected in your refund reports and that any related inventory adjustments appear in your FBA Inventory report.
Check that disposition codes for returned items match your records. Items marked as "sellable" should go back into your available inventory, while those labeled "damaged" or "defective" might qualify for reimbursement from Amazon. Additionally, confirm that refund amounts match the original sale prices and account for any associated fees.
How to Find and Fix Discrepancies
After carefully reviewing your reports, the next step is to identify anomalies that could be costing you revenue. FBA discrepancies are a common issue, and addressing them promptly is crucial to protecting your profits. Make sure to spot these discrepancies and file claims before Amazon's deadlines. Below, we'll break down how to identify common issues and prepare for effective claim submissions.
Common Discrepancies to Watch For
Inventory-related problems are among the most frequent FBA issues. For instance, Amazon’s fulfillment centers may receive fewer units than you shipped, leading to missing inventory. Damaged products can also occur during transit or while being handled in the warehouse. Other issues include mixed SKUs, where different products are confused during the receiving process, or misplaced inventory that exists physically but is untraceable due to poor storage practices.
Fee discrepancies can show up when comparing your settlement and transaction reports. These often arise from timing differences or inconsistencies in how fees are applied. Make sure to review fees carefully, as discussed earlier, to ensure everything aligns.
Data accuracy errors are another headache. These include incorrect SKUs or quantities due to manual entry mistakes, improper product labeling that causes misplacements, and synchronization glitches between your system and Amazon's. Occasionally, software bugs may even lead to phantom inventory adjustments or duplicate charges.
The numbers paint a clear picture: the average inventory accuracy rate for businesses in 2024 was just 83%, and 69% of companies now consider inventory accuracy a key performance indicator. Sellers with accuracy rates above 95% are considered high performers, but even hitting 90% can put you well ahead of the average.
Warning Sign | What to Check |
|---|---|
Quantity Differences | Compare your shipping manifest to received units |
Unusual Shipment Status | Monitor updates on shipment statuses |
Unexpected Inventory Changes | Compare inventory records to actual stock |
Once you’ve identified discrepancies, the next step is to file claims using Amazon’s streamlined process.
Submitting Claims Through Amazon
Amazon offers different ways to submit claims depending on the type of discrepancy. For missing inventory, go to the Shipping Queue in Seller Central, find the relevant shipment, and click "Track shipment." On the Summary page, select "Reconcile" and choose "Missing–please research." This will trigger Amazon’s investigation process.
For damaged units, submit a claim through the Contact Us page in Seller Central. If you’re dealing with lost units, use the Contents tab to file your claim directly.
When filing a claim, Amazon may require supporting documents. Be prepared to provide the Amazon shipment ID and proof of inventory ownership, such as supplier invoices, receipts from other sellers, or signed packing slips if you manufacture the products. Include details like purchase dates, product names that match the lost or damaged items, and quantities.
For large shipments, include a stamped proof of delivery document with the box count and weight. For small-parcel shipments, make sure to provide the active tracking ID.
Keeping Detailed Records
Staying organized is key to managing claims efficiently. Keep a system in place to track all claims and related documentation. This should include shipping manifests with original unit counts and SKUs, Amazon’s receiving reports, and any inventory adjustment reports showing changes after receipt.
Log each discrepancy with the date, details of the issue, evidence, and the actions taken. This creates a clear audit trail, which can be invaluable if Amazon requests additional information or if you need to escalate a claim.
Frequent reconciliation helps you catch issues early. Regularly check your Inbound Shipment Audit page to stay on top of discrepancies as they happen, rather than discovering them weeks later. The sooner you document and address problems, the stronger your case will be when filing claims with Amazon.
Using Tools to Automate the Process
Reconciliation tasks can be overwhelming, especially when dealing with large volumes of data. That’s where automation steps in, turning a time-consuming and error-prone manual process into something much faster and more reliable.
Why Automated Reconciliation Makes Sense
Automation isn’t just about saving time - it’s about improving accuracy and outcomes. For instance, automation can reduce operational costs by 30%, cut reconciliation time by 80%, and lower human error rates by 70%. Sellers often see a 25% boost in fee recovery because automation catches discrepancies that manual reviews might miss. These missed discrepancies can cost sellers 1–3% of their annual revenue.
Manual reconciliation, on the other hand, tends to achieve only about a 40% approval rate, largely due to documentation errors and human oversight. In contrast, automated systems achieve higher approval rates by systematically collecting evidence and checking against detailed criteria.
Criteria | Manual Reconciliation | Automated Reconciliation |
|---|---|---|
Time Investment | Time-intensive due to manual work | Saves up to 95% of time with daily reporting |
Error Rate | High likelihood of mistakes | Minimal errors with algorithm-based checks |
Scalability | Limited by human capacity | Handles large data volumes effortlessly |
Recovery Impact | Missed claims cost 1–3% of revenue | Better recovery rates with systematic checks |
Automation tools connect directly to Amazon’s systems through secure APIs, pulling data automatically and running comprehensive checks in minutes. Key features include automated data collection (no more manual downloads), advanced rule engines that detect patterns, and real-time alerts for discrepancies. What could take days to process manually is completed in moments.
This is where tools like Refunzo shine, offering a streamlined and efficient reconciliation experience.
Refunzo: Free Reconciliation Service
Refunzo stands out as a completely free Amazon FBA reconciliation tool, with no hidden fees or subscriptions. Using Amazon’s Selling Partner API, it securely accesses your account data and performs a thorough 21-point reconciliation process. This includes everything from tracking missing inventory to identifying fee discrepancies.
Here’s how it works:
Connect your Amazon account to Refunzo through its web app.
The system automatically runs checks based on over 20 criteria, generating a detailed report. This report breaks down how much Amazon owes you, categorized by issue type.
If you choose, Refunzo can also handle reimbursement claims for you. Once you authenticate your credit card, Refunzo manages the entire process - from logging support cases to providing evidence and following up until the claim is resolved.
The fee structure is simple and risk-free: you only pay 15% of the refunded amount or $5,000, whichever is lower. And you’re only charged after the reimbursement is credited to your account, so there’s no financial risk if claims aren’t successful.
Refunzo’s automated system digs deep, uncovering issues that often go unnoticed during manual checks. It monitors removal and disposal records, flags size and weight discrepancies, analyzes return processing errors, and spots fee miscalculations. It also compiles all the necessary documentation in the format Amazon requires, ensuring claims have the best chance of approval.
For regular users, the benefits are clear. Instead of spending hours each week combing through reports, sellers can focus on growing their business while Refunzo handles the heavy lifting. The detailed reports also help identify recurring issues, enabling sellers to address problems directly with suppliers or fine-tune their shipping processes.
As your business grows, the advantages of automation become even more evident. Managing reconciliation manually becomes nearly impossible with higher transaction volumes. Automated tools like Refunzo scale effortlessly, ensuring accuracy and efficiency, no matter how much your business expands.
Best Practices for Regular Reconciliation
Even with automated checks in place, consistent manual reviews are essential for maintaining long-term financial accuracy. Regular reconciliation helps catch small mistakes early, preventing them from turning into expensive problems.
Set Up a Regular Review Schedule
Plan to conduct a full reconciliation every month, ideally during the first week when settlement reports are up-to-date. If you're dealing with high sales volumes or major events, consider increasing the frequency to catch discrepancies quickly. Regular manual reviews not only double-check the accuracy of automated systems but also strengthen your ability to handle claims effectively.
Store Reports and Evidence Properly
An organized filing system can save you a lot of headaches when it's time to submit claims or resolve disputes. Create a clear folder structure on your computer with intuitive naming conventions like "2025-01-Settlement-Report" or "2025-Q1-Inventory-Reconciliation." This makes it easy to sort files by date and find what you need quickly.
Scan and store documents in dedicated digital folders as soon as they're available, and always keep backups to avoid data loss. Keeping archived reconciliations accessible can be a lifesaver during tax season or audits, allowing you to reference resolved cases without hassle.
Keep Supplier Invoices Ready
Supplier invoices are your go-to proof when questions arise about product authenticity or shipment details. This is especially important for high-value items or older shipments where other documentation may be incomplete.
Maintain clear, well-organized PDF invoices, preferably sorted by supplier and date. If necessary, include translations to make them easy to understand. For restricted categories or ungating requests, invoices from reputable suppliers can significantly improve your chances of approval. As a rule of thumb, keep invoices for at least two years after the related inventory is sold. Some sellers even retain them indefinitely for warranty claims or product liability concerns.
Conclusion: Maintain Financial Accuracy with FBA Reconciliation
Walking through each reconciliation step reveals just how crucial a structured process is. Cross-checking your Amazon FBA reports isn't merely about recovering lost revenue - it’s about safeguarding your business's financial stability. By downloading settlement reports, comparing sales data, verifying fees, matching inventory records, and reviewing returns, you establish a system that catches discrepancies before they snowball into larger problems.
When you weigh manual reconciliation against automated tools, the contrast becomes striking. Manual methods depend on your ability to identify inconsistencies across various reports, which can be time-consuming and prone to errors. Automated tools, like Refunzo's 21-point reconciliation system, take the guesswork out of the process, quickly identifying discrepancies and addressing them efficiently.
Manual Reconciliation | Automated Tools (e.g., Refunzo) |
|---|---|
Time-intensive | Quick and efficient |
Susceptible to human error | Minimizes mistakes |
Relies on user expertise | Utilizes comprehensive checks |
No direct cost (but uses time) | Free lifetime service, with optional reimbursement claim support |
This comparison highlights how automated solutions can save time and reduce errors, making them a smart choice for protecting your revenue. But the benefits of consistent reconciliation go beyond reimbursements. Keeping accurate records strengthens your position during Amazon disputes, simplifies tax preparation, and helps you provide proof-of-purchase for high-value or older shipments. Organized documentation can often determine whether a claim is approved or denied.
Refunzo’s free reconciliation service simplifies the process, ensuring every dollar owed to you is recovered without hassle.
It’s important to remember that reconciliation isn’t a one-and-done task - it’s an ongoing commitment. By setting a monthly review schedule, you can prevent errors from piling up and ensure you recover what Amazon owes. With regular monitoring, proper documentation, and the right tools, FBA reconciliation becomes a manageable and effective part of your business operations.
FAQs
What are the most common issues to watch for when reviewing Amazon FBA reports?
When diving into Amazon FBA reports, there are a few common issues you’ll want to keep an eye on. These problems can directly affect both your inventory and your bottom line:
Inventory discrepancies: Items can get lost, damaged, or miscounted during shipments, leading to inaccuracies.
Mismatched data: Sometimes, sales reports don’t align with actual inventory levels, creating confusion.
Incorrect SKU mapping: Products might be assigned to the wrong identifiers, which can mess up tracking and reporting.
Delayed system updates or sync errors: Outdated or inaccurate data can show up in your reports due to lagging updates.
Catching these problems early is key to keeping your operations running smoothly and avoiding financial headaches. Tools that automate reconciliation checks can help streamline this process and reduce the chance of errors.
How do automation tools like Refunzo make reconciling Amazon FBA reports faster and more accurate?
Automation tools such as Refunzo make reconciling Amazon FBA reports a breeze by automatically analyzing and cross-checking data on various levels. This not only minimizes the chance of manual mistakes but also ensures precise reporting while saving you a ton of time.
Refunzo’s standout features include automated detection of discrepancies and detailed insights into reimbursements. These tools allow you to recover funds more efficiently while slashing reconciliation time by as much as 95%. Managing your FBA account has never been easier or more streamlined.
What should I do if I find discrepancies in my Amazon FBA reports?
If you spot inconsistencies in your Amazon FBA reports, the first step is to dig into your Seller Central account. Look closely at shipment details and your transaction history to confirm the issue. Be sure to collect all the key details - shipment IDs, dates, and product specifics - to back up your case.
Once you’ve got everything in order, open a case with Amazon Seller Support. Provide a clear explanation of the discrepancy and include all the necessary documentation. If the problem persists, you can escalate it by filing a claim through the FBA issues section. For a smoother process, you might want to explore tools that automate report reconciliation and help with reimbursement claims.
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