Refunds

All of your returns processed through Amazon will show in Accounting>Refunds. Refunds update after the payment disbursement (settlement close) that contains the refund has been received.

If you are not seeing any refunds on this page, please open a support ticket.

 

Refunds Overview

• Searching Refunds
• Refund Transaction Details

Cost/Unit Credit Accounting

• Refunds Dated January 1, 2020 - Present
• Refunds Dated Prior to January 1, 2020
  • Managing Refunds Prior to July 1, 2019

 

 

Refunds Overview

To view your refunds, click the Accounting tab and select Refunds from the dropdown menu.

 

This page has the following sortable columns:

• Return Date
• Order ID
  • Item Title
• Amazon Disposition
• Order Price
• Return Price
  
  • Replacement Order IDs are included in this column when applicable. Clicking an Order ID will show the details of the sale.
• Cost/Unit Credit
• Net Profit 

 

For all Refunds with a date on or after July 1st, 2019, the disposition will automatically reflect the disposition reported to us by Amazon. 

Note: Although Merchant Fulfilled returns do appear on the Accounting>Refunds page, they only reflect the information on the Disposition Management page and are not counted twice.  If needed, you can make changes to dispositions for them from the Accounting>Disposition Management page. 

 

 

Searching Refunds

The default view of this page shows all refunds from the last 1 month. The Advanced Search can be utilized to view the entries within a specific timeframe or a custom date range.  You can also search the report by Order ID, Title, ASIN, MSKU, or by scanning the UPC.

 

You can Export any view you select.

 

 

Refund Transaction Details

Clicking on the Order ID will give you a detailed breakdown of the transaction which includes the following where applicable:

• Order Details
  • Order ID
  • Item Title
  • MSKU
  • Date Sold
  • Date Returned
  • ASIN
  • Disposition Status
  • Disposition Reason
  • Cost/Unit
  • Supplier
  • Quantity of Item(s) returned
• Income (items in red are negative adjustments, items in green positive)
  • Item Price 
  • Shipping Credit 
  • Gift Wrap Credit
  • Shipping Promotion
  • Shipping and Gift Wrap Chargebacks
  • Restocking Fee
• Expenses (items in red are negative adjustments, items in green positive)
  • Cost/Unit Credit 
  • Amazon Referral Fee
  • Sales Tax Service Fee
  • Closing Fees
  • Return Shipping Cost
  • Refund Administration Fee
  • FBA Customer Return Per Order Fee
  • FBA Customer Return Per Unit Fee
  • FBA Customer Return Weight Based Fee
  • Goodwill Refund - This amount typically reflects what is in the 'Income' section as a negative Item Price adjustment. It does not take the amount out twice, it is just an indication that the transaction was a goodwill refund.
• Other (items in red are negative adjustments, items in green positive)
  • Item Tax
  • Marketplace Facilitator Tax
  • Shipping Tax
  • Marketplace Facilitator Tax Shipping
  • Gift Wrap Tax
• Fees Section
  • Displays all of the Amazon Fees from the Expenses area
• Accounting Section
  • Total Buy Cost
  • Profit %
  • ROI %

 

Additionally, information about the reason for refunds can be found in Seller Central under Reports>Fulfillment>FBA customer returns once the item is received back at the warehouse.

 

 

Cost/Unit Credit Accounting

Sometimes, refunds will receive a Cost/Unit credit on the Refunds page for accounting purposes.

 

Refunds dated January 1, 2020 - Present

Refunds that are marked as Sellable will be given a Cost/Unit credit so the buy cost can be accounted for with the next sale without doubling it as an expense.

 

Refunds that are Unsellable, have a disposition reason, and are returned back to your inventory will receive a Cost/Unit credit. We will also add back in the quantity to your inventory until the item is removed to match what Amazon does with the inventory.

When you remove the item, you can change the disposition on the Accounting>Dispostion Management page to control how the buy cost is accounted for once the removal order is complete.

 

Refunds that are Unsellable, have a disposition reason, but are not returned back to your inventory will not receive a Cost/Unit credit.

An example of this is when a customer returns a product that is damaged, and Amazon reimburses you in cash instead of adding the unit back to your inventory. In this case, the Cost/Unit remains captured as an expense with the original sales transaction.

 

Refunds that are Unsellable, without a disposition reason from Amazon, will not receive a Cost/Unit credit.

Typically this means that the item was not returned back to the fulfillment center, and so the buy cost remains with the original sale. If the item is later received, and Amazon updates the disposition reason, the buy cost will be updated and inventory adjust for refunds starting in 2020.

 

 

Refunds Dated Prior to January 1, 2020

Sellable refunds are given a Cost/Unit credit so the buy cost can be accounted for with the next sale without doubling it as an expense.

 

Unsellable refunds returned to inventory prior to January 1st, 2020 are not given Cost/Unit credit and the quantity is not added back to inventory. To properly account for these items, you'll need to remove them (which corrects the Inventory discrepancy) and account for the item as mentioned in the Disposition Management Prior to 2020 article.

 

Managing Refunds Prior to July 1, 2019

In order to properly account for Refunds before July 1st, 2019, you'll need to manually mark the refunds as either Sellable or Defective based on the Amazon Disposition from your FBA customer returns report in Seller Central.

 

If a refund is not on the FBA customer returns report at all, you would mark it as Unsellable.

For more information on changing the disposition of your Refunds prior to July 1st, please see- When + Why to Change a Removal to Sellable or Unsellable 

 

After you make the changes to the Refunds page, you will then navigate to the Accounting>Disposition Management page to make changes to any removals due to refunds in which you disagreed with the Amazon Disposition.

 

Please note that you may notice that the Remaining area in your Inventory>FBA Replenishments pages shows Sellable Refunds placed back in your inventory for a Refund when you previously marked that Refund as Unsellable. An example of this scenario can be seen below:

 

This is because, for your inventory, we use the Amazon disposition for the item to subtract the refund. This way, when the removal order is done where you disagree with the Amazon disposition, the inventory will then be removed again with the completion of the removal order. The removal order will offset the addition of the Sellable Refund to ensure the FIFO order of your remaining replenishments is most accurate.

You can view the Amazon-selected disposition of the Refund by clicking on the Order ID on the Refunds page and viewing the "Disposition Status" area. Items with an Unknown disposition are deemed Unsellable.