Amazon FBA Accounting: A Guide for Aussie Sellers

Amazon FBA (Fulfillment by Amazon) is a fantastic logistics network, but a nightmare for accountants. Amazon charges you for everything: storage, picking, packing, advertising, commissions, and returns.

Decoding the Settlement Report

Every fortnight, Amazon deposits a single "Net" amount into your bank account. This single number is the result of potentially thousands of transactions.

A $5,000 deposit might actually be:

• Sales: $10,000
• FBA Fees: -$3,000
• Ads: -$1,500
• Refunds: -$500

If you just record the $5,000 as "Sales," you are massively understating your revenue (risking GST fines) and missing out on thousands of dollars in deductible expenses (Fees/Ads).

Inventory Tracking

When you send stock to Amazon's warehouse, it is still your asset. It sits on your Balance Sheet as "Inventory at FBA." It only becomes an expense (COGS) when Amazon sells it. If you expense it as soon as you ship it to Amazon, you will distort your profit margins.