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Amazon FBA fees and Amazon reserved balances


I have Amazon FBA seller client, I wouldlike to inquire from someone who have experience in eCommerce GIFI mapping:

  1. Would you assign A/R GIFI code # 1060 to Amazon reserved balances (this is amount that will be paid next month from amazon to client).

  2. How would you report Amazon Seller Fees and Amazon FBA fees; these are kind of commission Amazon cuts from gross sales, do you recommend:
    A) selling cost gifi code #9273 or
    B) COGS gifi code #8320 or
    C) you recommend to report the net sales amount to sales GIFI#8210
    D) I saw some accountants treat it as merchant fees under back charges GIFI#8715 which I am not in favor of.

Thank you for your thoughts


Hi daaboul_999

1).- It would be an Accounts Receivable the Amazon Reserved Balances. This is correct.1060.
2).- These are commissions. I utilize their own commissions (Expense) account (not netting from sales). It depends on where you are including them in the Financial Statements. Of the accounts that you mention, I will utilize 9273
All the best!



Thank you very much Gabriel, it make more sense to map FBA fees as selling cost # 9273.

Do you do lots of ecommerce (shopify/Amazon/Etsy/ you tube/ Bloggers) T2?

I create a notional Amazon Bank account that matches the balances in the Amazon Reserve on their report. I am not sure what FBA refers to, but I have set up marketing and fee expense accounts depending if it is Amazon, Etsy or Shopify. Let me know if this makes sense.

Thank you for your contribution tome, FBA means fulfilled by amazon, it a model of Amazon business where Amazon stores, ships, and handles the customer support of the owner products which is opposite to FBM (fulfilled by merchant), in FBM the owner just lists his products on Amazon and he has to handle the orders fulfillment (Store, Ship, customer support).

on company’s balance sheet it can be called Amaozn bank (the reserved balance) or A/R but what I meant when preparing the S100 in the tax return, I think I prefer to report it as current asset (like Account Receivable) more than Cash and Bank # 100 and 101

Thanks. Wasn’t sure of the acronym. I have one QBO Bookkeeping client that uses Shopify & Etsy. Another QBO Bookkeeping client has an Etsy Store and an Amazon CDN & US FBN store, We are showing the unsettled amounts as an asset in a notional bank account as opposed to an AR, for what it’s worth. I am working on expanding my Tax business in the sole proprietor ecommerce area.

… and don’t forget to include your T2 Schedule 88. :wink:

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Hi daaboul_999

I have experience with a fair number of e-commerce stores (Amazon, Shopify, YouTube influencers, and online marketing). My firm has a lot of engagements in that niche.

Gabriel Krozkin, CPA, CGA

Phone:(416) 560-4176
Fax:(416) 322-7193
240 Richmond Street West, Suite 3-104
Toronto, ON, M5V 1V6

Glad to know, I will touch base with you Gabriel