Once you make the decision to remove or dispose of an item from an FBA warehouse, it will be removed from your inventory in Seller Central upon completion of the order. It will also be removed from your inventory in Stratify once the inventory sync has been completed since the removal or disposal order.
For removals, once the item is returned to you, you can decide whether the disposition from Amazon was correct for that item and mark it accordingly on the Disposition Management page when the order is complete. The disposition controls Buy Cost Adjustment for the items.
Cost/Unit Accounting For Removal & Disposals From 2020-Present
Cost/Unit Accounting For Removal & Disposals Prior to 2020
Cost/Unit Accounting For Removal & Disposals From 2020-Present
Removals Due to Customer Returns
If the item is removed due to a customer return, when you mark it as Sellable on the Disposition Management page, it will not receive a cost/unit adjustment and the Buy Cost Adjustment will display as 0.00. This is because you already received a cost/unit credit on the Refunds page when it was returned back to your inventory.
If you mark a removal as Unsellable on the Disposition Management page, it receives a cost/unit debit using the Active cost/unit for the MSKU on the Inventory>FBA page. This debit offsets the credit given on the Refunds page when the item was returned back to your inventory. In this case, the cost/unit remains captured as an expense with the original sales transaction.
Regular Removals
For a regular removal, if you mark it as Sellable, it will not receive a cost/unit credit and the Buy Cost Adjustment will display as 0.00. This way, you can account for the buy cost when you relist and ultimately sell the item.
When marked as Unsellable, it will receive a cost/unit debit to track the cost as a loss.
Disposals
The item is given a cost/unit debit using the Active cost/unit for the MSKU on the Inventory>FBA page. This includes disposals due to FBA customer returns from 2020 and beyond, as you received a cost/unit credit on the Refunds page when it was returned back to your inventory.
Cost/Unit Accounting For Removal & Disposals Prior to 2020
Removals Due to Customer Returns
If the removal is due to a customer return where the Amazon Disposition is Sellable, and you leave it as Sellable, it will not receive a cost/unit credit and the Buy Cost Adjustment will display as 0.00. This is because you already received a cost/unit credit on the Refunds page when it was returned back to your inventory.
If the removal is due to a customer return where the Amazon Disposition is Unsellable, but you change it to Sellable, we will provide a cost/unit credit. This is to ensure the cost/unit is not doubled as an expense when the item sells again.
If the removal is due to a customer return where the Amazon Disposition is Unsellable, and you leave it as Unsellable, it will not receive a cost/unit adjustment. The Buy Cost Adjustment will display as 0.00 and the cost/unit remains captured as an expense with the original sales transaction.
If the removal is due to a customer return where the Amazon Disposition is Sellable, but you change it to Unsellable, it will receive a cost/unit debit to offset the cost/unit credit it received on the Refunds page when it was returned back to your inventory.
Regular Removals
For a regular removal, if you mark it as Sellable, it will not receive a cost/unit credit and the Buy Cost Adjustment will display as 0.00. This way, you can account for the buy cost when you relist and ultimately sell the item.
When marked as Unsellable, it will receive a cost/unit debit to track the cost as a loss.
Disposals
If due to a customer return where the Amazon Disposition is Sellable, it will receive a cost/unit debit to offset the cost/unit credit it received on the Refunds page when it was returned back to your inventory.
If due to a customer return where the Amazon Disposition is Unsellable, it will not receive a cost/unit adjustment and the Buy Cost Adjustment will display as 0.00. In this case, the cost/unit remains captured as an expense with the original sales transaction.
If not due to a customer return, it will receive a cost/unit debit using the Active cost/unit for the MSKU on the Inventory page.
Managing Removal & Disposals Prior to July 1, 2019
You may have accounted for returns dated prior to July 1st, 2019 before we automatically accounted for removal buy costs. If so, you will not need to make changes to the Disposition Management page for these specific items. For more information, see the article- When + Why to Change a Removal to Sellable or Unsellable
Additionally, if you've previously accounted for removal or disposal buy costs manually under Other Expenses after July 1, 2019, you'll need to delete them to avoid double counting a buy cost.
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