Xero & reconciliation
Four ways sellers get Amazon into Xero, which one to use, and how to set it up.
Last updated: 19 September 2026
Short answer: record Amazon sales in Xero as one sales invoice per Amazon settlement, raised to a contact for that marketplace, with separate VAT-inclusive lines for sales, refunds, each type of fee and any reserve. The invoice total equals Amazon's deposit, so you mark it paid by matching the bank line. If a settlement is negative, record it as a bill instead.
| Method | How it works | Verdict |
|---|---|---|
| Code the bank deposit as sales | Reconcile the payout straight to a sales account | Wrong — sales are understated, fees are invisible and VAT can't be right |
| One invoice per order | Raise an invoice for every Amazon order | Impractical — thousands of documents that never match a deposit |
| Manual journal per settlement | Debit a clearing account, credit sales and fees | Works in pounds, but Xero journals can't be in euros or dollars, and they can't be matched directly to a bank line |
| Invoice per settlement | One invoice with a line per category, paid by the deposit | Recommended — matches how Amazon pays, supports any currency, reconciles in one click |
Group the settlement report into a manageable number of lines, each with its own account and tax rate. A typical settlement for a VAT-registered UK seller looks like this:
| Line | Account type | Sign |
|---|---|---|
| Sales shipped to UK (product and shipping) | Sales | + |
| Sales shipped outside the UK | Sales | + |
| Promotional discounts | Sales | − |
| Refunds | Sales refunds | − |
| Referral and closing fees | Amazon seller fees | − |
| FBA fulfilment fees | FBA fees | − |
| Storage fees | Storage fees | − |
| Advertising | Advertising | − |
| Inventory reimbursements | Other income | + |
| Reserve held / released | Balance sheet asset | − / + |
Expense lines are entered as negative amounts on the sales invoice, so the invoice total is the net payout. For the tax rate on each line, see Amazon VAT tax codes in Xero.
When Amazon's payment reaches your bank feed, Xero suggests the invoice with the same total. Accept the match and the invoice is paid. If Xero doesn't suggest it, the totals differ — see why your Amazon payout doesn't match Xero.
Xero won't accept a sales invoice with a total below zero. When fees exceed sales, flip the signs and enter the same lines on a bill from Amazon. See negative Amazon settlements.
TrueBooks builds exactly this invoice for every settlement — one per marketplace contact, in the settlement's currency, referenced to the settlement ID, tax-inclusive with the correct UK rates — and posts negative settlements as bills. You can review each one before it posts, or let new settlements post automatically. See the Amazon Xero integration.
No. Amazon doesn't pay you order by order, so per-order invoices can never be matched to a bank deposit one-to-one, and they flood Xero with thousands of documents. One invoice per settlement matches how Amazon pays and keeps order detail available in the settlement report.
Most sellers use the settlement's end date or the date the deposit was made. Use the same rule every time. If a settlement crosses two months and you need exact monthly figures, split it by month and carry the balance between the two parts.
Create a contact for each Amazon marketplace, such as 'Amazon.co.uk' or 'Amazon.de'. It keeps each marketplace's sales, currency and debtor balance separate.
A2X, Link My Books, Finaloop, Taxomate, QuickBooks and Sage are trademarks of their respective owners. TrueBooks is an independent product and is not affiliated with, endorsed by, or sponsored by any of them, by Amazon.com, Inc. or by Xero Limited. Third-party details reflect publicly available information on the date shown above and may change.