Sometimes, Amazon cancels a scheduled transfer and rolls the funds into a future settlement period. This can result in duplicate revenue being recorded if your accounting software has already imported the original settlement and then imports the next settlement that includes the rolled-over amount.
Here’s how to reconcile this properly in QuickBooks Online and Xero so your revenue and accounts stay accurate.
Amazon cancels a payout for a settlement period.
The unpaid balance is rolled into the next settlement.
Both settlement periods are imported into your accounting software.
This can cause revenue (and possibly COGS) to be double-counted.
Example:
Amazon cancels payment for Jan 30 – Feb 13 settlement.
$1,497.99 is rolled into the next settlement and paid.
Both settlements appear in QuickBooks Online or Xero.
Revenue shows up twice unless you adjust for the rolled-over funds.
Follow these steps to resolve the issue in Xero.
Go to Accounting > Advanced > Chart of Accounts
Click Add Account
Choose Current Asset as the Account Type
Enter a Code (e.g. 1205)
Name it Amazon Clearing Account
Check Enable payments to this account
Save
This account will temporarily hold the canceled funds.
In Xero, create a Receive Money transaction for the canceled amount (e.g. $1,497.99).
Allocate it to the Amazon Clearing Account.
This records the funds Amazon still owes you but has not yet paid at that point in time.
If invoices were created in Xero for the original settlement, adjust them so the revenue is not counted twice:
Open the invoices for the earlier settlement period.
Add new line items that debit the amounts from the Amazon Clearing Account:
For the first invoice, add a line:
Description: Adjustment to Amazon Clearing Account
Account: Amazon Clearing Account
Amount: -331.05
For the second invoice, add a line:
Description: Adjustment to Amazon Clearing Account
Account: Amazon Clearing Account
Amount: -974.99
This ensures the revenue for that canceled payment is removed from the original settlement period in your books.
Here’s how to resolve the same issue in QuickBooks Online.
Go to Accounting > Chart of Accounts
Click New
Choose:
Account Type: Other Current Asset
Detail Type: Other Current Assets
Name it Amazon Clearing Account
Click Save and Close
Go to + New > Journal Entry.
Create a journal entry:
Debit Amazon Clearing Account for the amount Amazon held back (e.g. $1,497.99).
Credit Amazon Sales or Settlement Income (or whichever income account was used in the original settlement import).
This recognizes the funds as still due from Amazon rather than immediate revenue.
When the rolled-over funds appear in the next settlement, you’ll need to clear out the clearing account to avoid double-counting:
Go to + New > Journal Entry.
Create a journal entry:
Credit the Amazon Clearing Account for $1,497.99.
Debit Amazon Sales or Settlement Income for $1,497.99.
This removes the extra revenue and keeps your income totals correct.
If you’re using software like Taxomate to import settlements as invoices or journal entries, you can edit the imported settlement data for the second period:
Reduce revenue by the rolled-over amount (e.g. $1,497.99).
Code the reduction to the Amazon Clearing Account.
Without these adjustments:
✅ Revenue will be overstated.
✅ Your bank deposits won’t match the settlement reports.
✅ Reports for Amazon income won’t reflect the correct period.
By using a clearing account, you keep your records precise and your income statements accurate.
If you’re unsure how to adjust these entries or work with your clearing accounts, reach out to your accountant or contact us at Taxomate support for help!
