Handling FBA refunds and returns in QuickBooks Online
Handing Amazon FBA refunds and returns on QuickBooks Online may seem like a straightforward process, but it can become complicated under certain scenarios. Amazon sometimes issues refunds before customers return products. Or customers will return an item that is damaged and no longer sellable. In these situations, you’ll have to account for the product in some way.
It would be inaccurate to create a refund document in QuickBooks Online when Amazon refunds without the return since that would increase your inventory count. That’s because refund documents in QuickBooks Online increase your inventory since it assumes you’ve received the product back.
Since you’re using Amazon FBA, creating a refund receipt isn’t accurate since sometimes no inventory was returned to the fulfillment center. By creating refund receipts for all your Amazon refunds, your QuickBooks Online inventory quantity will be incorrect. If you’re fulfilling orders on several marketplaces, then the incorrect count can lead to costly delays for your business.
You’ll end up selling inventory that you don’t have. What’s worse, your employees may end up selling used and returned stock as new for those products that were returned but not thoroughly inspected. The last thing you want is negative feedback caused by canceled orders or item not as described returns.
How does SellerZen handle Amazon refunds in QuickBooks Online?
SellerZen’s automated import service creates the proper documents for all Amazon transactions, including refunds and returns. That way, you’ll always have your inventory count correct for the connected marketplace, even for cases where products are returned 60 days after refunds are issued.
For Amazon refunds, we’ll not only create the refund receipt for the returned product, but we’ll also check to see if the customer returned the order. If no returns are found, then we’ll create the proper Vendor document to adjust your inventory on hand.
We do this to offset the increase generated automatically by the refund receipt. We’ll later generate the proper documentation if the customer returns the item and it’s added back to your FBA inventory for sale. No matter what happens, we’ll always have your Amazon inventory reconciled so that you can focus on growing your business instead of reconciling Amazon FBA refunds, returns, and QuickBooks Online inventory.
How does SellerZen handle Amazon FBA refunds and returns?
SellerZen creates a sales receipt for instances where refunds are issued but no returns are found. We do this because you’ve received nothing from the sale, and the sales receipt removes one inventory. Essentially, you’ve “sold” one item for nothing. Any other amount here will result in inaccurate reporting because the product is a loss at this point until the customer returns it. The other accounts, like your Sales of Product Income and your Cost of Goods Sold, are adjusted properly as a result of the sales receipt.
Without the sales receipt, all refunds would increase your inventory count. Over time, this can lead to a significant inventory discrepancy since not all refunded orders would be returned and in sellable condition.
If the customer later returns the product and it’s in a sellable condition, then we’ll create the right QuickBooks Online document to adjust your quantity on hand. That way, your QuickBooks Online inventory will remain synchronized with your current Amazon FBA inventory.
This kind of accurate reporting is necessary to reconcile your inventory counts on QuickBooks Online with Amazon. Of course, manually processing refunds and returns can be a tedious task since you’ll have to run return reports to see what, if any, items were returned in sellable condition. And you’ll have to do this on a fairly regular basis since customers have 30 days or longer to return an item. We’ve even seen instances where customers returned items several months after they were refunded, prompting Amazon to reverse their reimbursement.
All of these cases can prove frustrating to track on Amazon when you’re selling hundreds of items a month. By using SellerZen’s automated service, you can rest assured that all your connected marketplace transactions are precise. And the best part is that all of these order-related transactions will cost you nothing since we only count the initial order.
Keeping your QuickBooks Online company and your Amazon seller account synchronized and in harmony is not an easy task. For many small business owners, this task alone requires a bookkeeper or a well-trained data entry clerk, but even they can make mistakes. Using an automated service like SellerZen can guarantee quick, accurate documents and reduce downtime caused by human errors.