do you receive a deposit statement twice a month from Amazon that explains what they put into your
account well then you should record that into quickbooks online in the way that we will learn
in this video if you have any questions about this topic you can leave them in the comment
section below and i'll do my best to help you and of course if you feel the video helped you
I hope you will click like and don't forget to subscribe to get updates on new videos that come
out all the time what exactly happens in an Amazon online store well you purchase the merchandise
yourself independent usually of Amazon you arrange shipment to the storage location that you keep it
before you physically sell it to the customer you list the products for sale on your amazon online
store and the customer orders a product from your amazon online store then you arrange the shipping
through Amazon then the customer pays Amazon and Amazon releases the money to you after deducting
the fees then you get a statement from Amazon explaining the amount of money they deposited
into your account so what do you need to do when quickbooks online when you get the statement well
you need a chart of accounts that includes each item listed on the bimonthly Amazon statement
and in the and then you also need all the other normal banking related features in QuickBooks in
order to manage your general administrative expenses and record actually purchasing the
merchandise don't worry we will get an overview of all of those things in later videos but specific
accounts do you need to have in your chart of accounts to be able to record the bimonthly
deposit well in the video that was before this one the prior video we already demonstrated how
to record each of these seven accounts into the chart of accounts and quickbooks online so if you
missed that video i suggest you review it and go ahead and add each of these accounts in the way
that we already did so that we can record the information directly from your amazon bimonthly
deposit statement now here's an example of an amazon bimonthly deposit statement if you look
at the bottom left you can see that this is somebody's amazon deposit statement that was
deposited on april 3rd of 2019 which is the first month that we're dealing with in this
course now of course it looks like somebody took a bad picture of it with their phone I don't know
who but you will notice that there are numbers with little red dashes next to them I put them
there because I wanted to clearly distinguish between the positive numbers and the negative
numbers on the statement notice this person has six thousand six hundred and fifty-five dollars
withheld from the previous month that Amazon calls an unavailable balance and some of you
are required to have that I assume until you build up credit with Amazon then of course we have the
product charges which is your main income and everything that has a red dash next to it also
has a minus sign that means if you printed the statement in color the items with the red dash
next to it would be would print in red and if you zoomed in more closely you would see they have a
minus sign the way we record this in quickbooks online is to use the make deposit window each
entered number on the statement one-by-one must be either positive or negative and if it's listed
as negative on the statement then you have to enter it into the deposit window with a minus
sign do not enter subtotals and guess what that's it just read each line from the statement into
the deposit window and make sure the negative numbers are negative and you skip the subtotal
numbers so let's zoom in on the top half of this statement and enter it into quickbooks
online exactly how we see it now before we record from the statement let's just click reports custom
reports and confirm that we're starting with all numbers equaling zero reports profit and loss all
numbers equaling zero now how do you record the deposit in the top left you click new and all
the way to the right you click bank deposit now the date that Amazon deposited the money from
this particular statement was April 3rd of 2019 and you can leave received from completely blank
because you know you received it from Amazon the first account that you choose will be the first
item listed on the statement and the first item listed on the statement as a positive
number is the unavailable balance six six five five nine seven oops let's go back a little okay
six six five five nine seven so you will choose unavailable balance which is the account we put
in in the previous video six six five nine is that right 6 6 5 9 6 6 5 5 9 7 excuse me 6 6
5 5 and 97 cents now after you type the number in the field go to the left of your keyboard and push
tab when you keep pushing tab it will create the next line you can tab over to account and
simply put in the next number the next number is your main income product charges 13 790 622
so we choose the income account product charges 13 look at the short-term memory here 796 22 13
okay and then again after you type the number push tab until you create another line now the
next line is interesting promo rebates goes in as a negative number negative 3 28 36 so we come here
and we choose by the way if you type in the first two letters of the name of the account QuickBooks
Online will filter it so you can find the account more quickly promo rebates negative 3 something
320 836 negative push tab until you go to the next line so what's the next one the next one is Amazon
fees negative five thousand three dollars and sixty four cents so we type in a.m. so that it
filters at Amazon fees minus five thousand three dollars and what was it 64 cents push tab until
you get to the next line what's the next line the next line is other and it's a positive number so
even though you listed that as an expense you will still type that in as a positive number
if that was what was listed on the statement as a positive number for $28.99 other positive and
keep pushing tab until you get to the next line okay now product charges down here is now again
list it as a negative and even though you used it once if Amazon listed it again then you have
to enter another line exactly as you see it on the statement product charges negative one
thirty seven so product charges negative one thirty seven and keep pushing tab now what's
the next one the next one was promo rebates as a positive five ninety-nine so that's what you type
actually was that negative or positive hold on that was positive so you have to be very careful
that one mistake will throw off the total at the bottom and you have to confirm that you're correct
by matching the total at the bottom so what's the next one after Amazon fees as a positive
1559 so you have to record that positive ok what's next then other as negative 672 so
okay what's next well we've done everything in the top half of the
statement so let's record from the bottom half of the statement subscription fees
negative 39.99 exactly as it's listed on the statement FBA fees negative one
thirty eight forty exactly as it's listed on the statement cost of advertising 131 76
is that negative 130 176 let's confirm yup and now skip the subtotals you have another other
for two hundred dollars and sixty cents positive so and that's a positive number on the statement
so you put it as positive in your deposit now it does give you a total balance of 15 371
49 so you have to confirm that by scrolling all the way down 15 317 49 1537 oh I put in
a wrong number and if it's transposed I'm going to pause this video and find out which number I
transposed because I know that this is supposed to be 71 instead of 17 so let's take a look at
which number I did wrong and what I found by looking more closely is that on line number
five I transposed the 2 and the 8 it should be 82 and push tab now that I corrected the
mistake if I scroll all the way down 15 371 49 is the total deposit so far and that's what it
gives me as the total deposit on the second page here total balance 15 371 49 however that's not
what they deposited on April 3rd they only deposited 9600 fifty-seven why because they
withheld this 5713 72 so now we will put that back in unavailable balance by recording it
exactly as Amazon listed it on the statement with a negative number the unavailable balance at the
bottom is what they subtract out and we put it as negative negative five seven one three seven
two negative five seven now let's look really close three one three seven two five seven and
after we push the final tab you will see the actual amount that is deposited into our bank
account matches exactly what Amazon tells us at the bottom of the statement now all
we have to do is click Save and close and we have a little too much detail in this profit
and loss so let's click back reports and go to the custom reports the trial balance and
you can see that cash and Bank is exactly the amount they deposited the unavailable balance
is simply the difference between the amount they gave us from last time withholding deducted from
the amount that they withheld this time and you can see the income and expenses listed here now
it's better than the detail it's better to click report reports standard and go down to just the
regular profit and loss click regular profit and loss and you can control the to and from
dates but if you click the date pull down and choose all dates and click run report you can
see just for April of 2019 your net income was eight thousand seven hundred fifteen dollars
and fifty two cents and that's because you earned thirteen thousand six fifty nine in
income and Amazon subtracted all these expenses so you're real profit from that statement was
eight thousand seven hundred fifteen even though the amount that they put into your
bank account was nine thousand six hundred fifty seven because the difference really is
the unavailable balance the difference between what they remitted from last time deductive
from what they withheld this time because that doesn't really count as part of your income and
expense that's why the amount of deposit was a little bit different than your net income