Amazon seller accounting starts with a distinction: the deposit in your bank account is not the same as your sales. Amazon may deduct fees, process refunds and make other adjustments before sending a payout. To understand what you earned, keep the underlying transactions visible and reconcile each payout to the records in Seller Central.
A workable routine is to save your settlement reports, match each deposit to its settlement, record sales and adjustments in separate categories, and track the cost of stock sold. Keep the supporting invoices and reports together so you can explain the figures later. This is general bookkeeping guidance, not tax advice; confirm your own obligations with HMRC or a qualified accountant.
Reconcile Seller Central settlements with your bank
Start with the payout shown in your bank feed and find the corresponding settlement in Seller Central. Download or save the settlement report rather than relying only on the payout summary. The report provides the transactions behind the deposit, including sales, refunds, charges and adjustments.
Check that the settlement's payout matches the bank deposit, allowing for any payment still in transit. If it does not, check the settlement period and bank posting date, then look for balances carried forward, held funds or adjustments. Avoid forcing an unmatched amount into a general expense category just to make the accounts balance. Keep a note of what remains unresolved and revisit it when the next settlement arrives.
Build a repeatable trail: bank deposit to settlement report, settlement report to your bookkeeping entries, and entries to the underlying transactions where needed. Keep the original downloads alongside any spreadsheet or accounting-software import. That makes it easier to investigate an unexpected charge or explain a correction.
Record sales, fees, refunds and reimbursements separately
Do not enter the bank payout as if it were your sales total. Recording only the net deposit hides the activity that produced it and can make it difficult to assess trading performance. Categorise sales, Amazon fees, refunds and reimbursements separately, using the settlement report to connect them back to the payout.
A refund is not the same thing as an Amazon fee, and a reimbursement should not simply disappear into the sales figure. Review the description of each adjustment before assigning it a category; similar-looking credits may have different explanations. If you import transactions automatically, check that your software has not also recorded the bank deposit as fresh income. The deposit should clear the amount due from Amazon, rather than duplicate the sales already entered.
For more on the charges that can appear in a settlement, see Amazon selling fees in the UK. Use your own Seller Central reports for the amounts you actually incurred.
Track stock purchases and the cost of goods sold
Buying stock uses cash, but unsold stock is not the same as stock that has generated a sale. Keep purchase invoices and track what you bought, what remains on hand and what has sold. Include relevant acquisition costs in your stock records where appropriate, and document how you assign costs to products so that your method stays consistent.
If you sell several products, record costs by SKU or another identifier you can match to sales. Reconcile stock records against supplier invoices and Seller Central inventory information, and investigate discrepancies such as returns, damaged units or missing stock. Treat a refund and any returned stock as related events to review, rather than assuming the product is immediately available for resale.
This separation helps you assess profit without treating every stock purchase as a cost of products already sold. For a closer look at the sales and cost inputs behind a product decision, read how to calculate Amazon FBA profit and try the profit calculator. A calculator can help test a product's economics, but it does not replace your bookkeeping records.
Keep VAT documents and other evidence organised
Store supplier invoices, Amazon reports, relevant sales documents and bank statements in a way that lets you find the evidence for an entry. If VAT applies to your business, keep the documents and transaction details needed to support your records, and check how the amounts in your reports relate to the invoices you hold. Do not assume a settlement summary is a substitute for every invoice or other supporting document.
The VAT calculator can help you check calculations while reviewing figures, but it cannot determine your VAT position or filing responsibilities. HMRC may ask to see records supporting what you report. Ask HMRC or a qualified accountant which records you need, how to treat particular transactions and how long to retain them for your circumstances.
Choose a system you can maintain
A spreadsheet may be practical if you have a manageable number of transactions and can reliably save reports, categorise entries and reconcile deposits. Set out clear columns for the settlement reference, transaction category, product or SKU where relevant, and the link to supporting evidence. Check formulas and make backups.
Accounting software may help when transaction volume grows or you need a clearer connection between bank feeds, reports and bookkeeping entries. Before choosing a tool or connector, check how it handles Amazon settlements, refunds, reimbursements and stock costs. Automation still needs review: an incorrect mapping can repeat the same mistake across many transactions. The UK seller tools hub brings together calculators for checking commercial assumptions alongside your records.
If reconciliations keep producing unexplained differences, your stock costs are hard to establish, or you are unsure about VAT or other reporting obligations, speak to a qualified accountant familiar with your business. Give them your settlement reports, bank records, invoices and a list of unresolved questions. Consistent records make that conversation more useful—and make your own view of the business more dependable.