If you’ve ever tried to account for Amazon sales using Seller Central reports or settlement data, then you’ll understand how much of a hassle this can be – especially as your business starts to scale.
A2X is a software plugin that integrates your Quickbooks (or Xero) cloud accounting system with Seller Central. In this article, we take a deeper look at how A2X works, why growing Amazon businesses should consider using A2X and what it takes to get set up.
How does A2X work?
Most sellers are paid any revenue less fees by Amazon once every fortnight. Information about these payments is published to a settlement file that can be found in the Seller Central platform. When Amazon creates a new settlement file, A2X automatically fetches it, crunches the numbers and generates a summary of the revenue, expenses and other transactions (such as referral fees, storage fees and returns).
A2X then uses this information to create invoices or journals for each settlement and posts them to your cloud accounting system – either automatically or at your command. You can then select the ledger accounts and tax rates that apply to each type of transaction. A2X allows users to configure sales by SKU or product type, and to group all sales together, or to configure it by country.
When settlement payments arrive in your bank account, it is easy to reconcile them with the A2X settlement postings with just a few clicks.