The Amazon integration is currently being rolled out over the next few weeks to businesses in the US with an active Pro Plan subscription.
Every 24 hours, Wave automatically imports your Amazon transactions that have finished processing.
Amazon accounts created in Wave
Amazon accounts created in Wave
When you first connect to the integration, Wave creates all Amazon-related accounts automatically. These accounts are:
- Amazon Clearing Account
- Amazon Product Sales
- Amazon Service Income
- Amazon Transaction Fees
- Amazon Payment Processing Fees
- Amazon Shipping
- Amazon Advertising and Promotion
- Amazon Subscription/Software Fees
- Amazon Uncategorized Income
- Amazon Uncategorized Expense
Sales bookkeeping
Each sale is recorded in the Amazon Money in Transit account. This is a single, split, deposit transaction that records the total sale amount and categorizes the different fees to their relevant expense accounts. The order number is also included in the description, and the link to the order in Amazon is in the Notes section.
The Amazon integration doesn't import operational transactions like inventory or COGS tracking, fulfillment or shipping data, unless it is required for tax lines, or payouts you receive directly from Amazon.
Once you receive the payout for a sale, you must manually categorize the payment as a transfer from your Amazon Money in Transit account:
- Open the Transactions page.
- Find your imported payout transaction, or create a new income transaction.
- Select the category Transfer from a Bank, Credit Card or Loan > Amazon Money in Transit. If you’re creating a new transaction, fill in the remaining details.
- Select Save.
- Wave automatically creates the matching transfer transaction under the Amazon Money in Transit account.
Multiple payments and fees that are processed close together may be bundled into one payout. This means your fees may sometimes be greater than your income from sales. In this case, Amazon may charge the difference to your bank account. Categorize this withdrawal transaction as a Transfer to a Bank, Credit Card or Loan > Amazon Clearing account.
How does Wave handle the sales taxes?
Due to Marketplace Facilitator Laws in the US, Amazon must collect and remit sales taxes directly to state authorities on your behalf. This means sales tax is not included in your imported transactions to prevent incorrectly adding tax liabilities and inflating your income.
Amazon fee bookkeeping
Fees not associated with a specific sale are recorded as a single transaction, categorized to the relevant expense account.