does amazon withhold some amount from each of your bimonthly deposits do you want to be able to keep
track of that in QuickBooks well this video will show you how to do one adjustment at the
very beginning so you're unavailable balance can always match the amount on the Amazon statement
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
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what is the unavailable balance that's listed on your bimonthly Amazon deposit statement it's
an amount that Amazon with holds and will pay you in the next statement it is technically a
current asset like a receivable because you will receive it in the future the bottom of
the statement shows the amount withheld until the next statement and the top of the statement shows
the amount from last time released and added to the payout on the current statement the balance of
the asset account should equal the amount that is receivable in the future which means the amount on
your trial balance should always be equal to the amount at the bottom of the most recent statement
so here we have the example statement this is the amount that they released from last time that you
actually added to the deposit as a positive number and on the bottom of the statement is the amount
they're actually withholding till next time that's the amount that really should show in the account
unavailable balance in your QuickBooks records but you see after we recorded our deposit what
was showing in the unavailable balance was not the amount that you will receive it was an
incorrect amount it's actually currently showing the difference between the unavailable about that
was withheld last statement had the unavailable amount that was withheld this statement so if
you followed along step-by-step you have the difference between the amount released from
last time and the amount withheld this time but it's better to actually have it show the amount
you're expecting to receive in the next statement you will also notice it's on the credit side so
if it's an asset that you expect to receive and it's on the credit side you should just know that
all that means is that it's a negative number but we'll deal with that in a second so how do
you get the unavailable amount in your QuickBooks records to actually equal the amount you're going
to receive in the next statement well it would be equal to that amount receivable if you actually
started these procedures at the very beginning when you open your Amazon store in other words
in your very first statement the amount withheld from last time would be zero because there would
be no last time so if nothing from last time would be added to the deposit that means the amount
withheld this time on this statement would be the amount you subtract from the deposit and the
amount that would be in the unavailable balance asset account but now you are not starting from
zero or let's assume that you're not starting from zero because you have been recording things and
then you learn and then you watch these this video series and learn how to do it so what if you're
not starting from zero what if you have the amount that we have now well how do you get it to match
very simple you only have to adjust it one time and if you make a simple journal entry to bring
it to the current balance then all you have to do is follow our procedures for deposits forever
going forward and then it will match every time and show you the real unavailable balance that
you can expect to receive in the next statement in other words this is the amount that it should be
because that's the amount at the bottom that you expect to receive in the next statement however
this is what it is in our current records if we look at our trial balance now it's showing
the difference between the beginning and ending of last statement because we didn't start these
procedures at the very beginning when you open your store we just started doing it in
the middle so it's showing the difference it's not really showing the amount you're going to
receive so what you have to do is find the difference and of course the amount in our
trial balance now is actually a negative number that's why it's on the credit side instead of
the debit side so if you remember your elementary school math when you find the difference between
a positive and negative number you learned in elementary school you have to add them together
but anyway this is the amount of the adjustment and all you have to do is adjust it once and it
will be correct every time going forward if you follow our deposit procedures so we're
going to make a journal entry and the balancing account is the opening balance equity account
from the main menu we click company make general journal entry now it really doesn't matter the
date but we really should be consistent we really should adjust it as of April 1 of
2019 so that this way the numbers work out now the unavailable balance account has a credit
balance so we have to make a debit of this ten thousand six hundred to bring it up to the nine
thousand six fifty five seventy seven so this is the amount we adjusted ten thousand six hundred
dollars and two cents so we're going to make a debit and the balancing account because it's
technically a setup because this is what we were supposed to have at the beginning is the opening
balance equity account save and close now notice the unavailable balance now properly reflects
the amount you will receive in the future nine thousand six hundred and fifty seven dollars and
seventy seven cents which is the amount that is listed at the bottom of the statement that
we will receive in the future and don't worry after this journal entry you know that all you
have to do is follow the exact procedures that you learned in this video series going forward
and that unavailable amount will always match the amount that you're actually going to receive
you