Taxes Checklist

We’ve prepared a checklist for you, if you plan to use the InventoryLab P&L reports for your schedule C.

Note: The 1099-K that is issued every year will not match your P&L reports, nor your payments reports in Amazon. This is because Amazon uses Gross Sales figures as opposed to payments figures.

For example, Shipping credits, Gift Wrap credits and Promotional Rebates that are credited as part of some FBA sales which are debited before the transaction is posted. Although you the seller never see these funds, the gross income figures will include numbers like these which will cause your total income to appear inflated.

It is up to you or your accountant to determine how much of this excess to categorize accordingly. InventoryLab is not intended to reconcile your 1099-K, rather it exists to provide you with quick reports to figure your net profit.

1. Get your inventory value by going to the Reports>Inventory Valuation. You are not required to run this on the last day of the year, but you will need to change the date in the upper right-hand corner to 12/31 if you run it on a different date. Change the status in the top right-hand corner to All and click View for the 12/31 date.

**These two articles can help if you were not a subscriber before the end of the year, in order to **manually calculate your Inventory Valuation totals: 

• Inventory Valuation: I wasn't a subscriber as of the end of last year so I don't have my Inventory Valuation!
• Inventory Valuation: I didn't add all of my buy costs before December 31st!

2. Before downloading or reviewing your P&L, make sure that MFN returns and removals/disposals for items you have had removed from Amazon have been marked as either Sellable or Defective on the Accounting>Disposition Management page.

Keep in mind that removal orders during peak times can take up to 30 days to process by Amazon. The below information on removals is from Seller Central: 

"Typically, removal orders are processed and leave the FC within 14 business days. Please allow an additional two weeks for the carrier to deliver after the shipment has left the FC. If there are problems with delivery, the carrier will attempt to contact you to resolve the problem. However, during the holiday season and peak removal periods, processing may take 30 business days or more. This process cannot be expedited. The FCs process each kind of removal in the order that they are created. We cannot expedite or prioritize any removal over the others. Large scale events like natural disasters and pandemics could also cause the removals process to take longer than expected."

If you are running reports for refunds dated prior to July 1st, 2019, you'll also want to make sure that you have your Refunds marked Sellable or Defective accordingly.

Note: You can find your dispositions in Seller Central by going to Reports>Fulfillment>Customer Concessions>Returns.

3. Check and address any alerts on the Inventory>FBA and Merchant pages and make sure that a cost/unit has been entered for all your inventory items.

4. Make sure all of your sales are reconciled for the entire year. If any of your sales for the year are showing estimated, or you are missing any Inbound Shipping fees, storage fees, subscription fees etc., take the steps in our help article to request historical reports that will sync the rest of your data.