As far as the IRS return is concerned (blanks on the standard 1040, 1120, etc.), you have “Sales,” “Sales Returns,” and “Cost of Sales.” You could probably get by with just these three (Lost inventory for which Amazon reimburses you is a “sale” of sorts.) I would break out anything related to Warehouse transactions (Lost Inventory or [if you have any] inventory increases) because you’ll also need to adjust your inventory value for these transactions. Fee corrections (which could be up or down), will go wherever you’re putting other Amazon fees.

Of course, for your own analysis, you might decide to create more categories.

As long as these amounts wind up in some bucket, you should be fine.

It also might be a good idea to consult with your tax professional.

Cheers!

-bob-

Right now I have a script that processes these Transaction Reports and converts them into IIF Quickbooks files that I can import month by month and adjust my assembly accordingly.

My goal was to create a Custom Report on Quickbooks and have one for Gross Sales, Refund, and Expenses so that I can easily pull numbers from when it comes to tax time. For the most part its working for auto balancing my books.

Since I started FBA this year, I’ve never had to deduct my refunds with FBA reimbursements which is why I’m stumped and new to this.

I think I will separate them into Quickbooks “items” and leave it at that and later generate a Custom Report on these Adjustments so I can adjust my numbers manually through excel. I will definitely consult my tax professional in hopes that I can get a one click report from Quickbooks to prep my taxes.

try printing out a summary report…those put all refunds, adjustments etc under proper classifications…might give you a good idea where to start with some of the unknowns.

So I have three layers:

Orders, Refunds, and anything that comes afterward as expense. I separated out the Refunds from the Expenses because I needed to be able to pull Sales Tax data to pay State Sales Tax. In the event where we have to pay taxes to every state, I can expand this section of the code.

Orders add up to the Gross Sales.

Refunds adds up refunds, az-claims, and chargebacks. For AZ claim and chargeback, I found out it was simpler to just not put the inventory back into Quickbooks inventory assembly because of the high rate of loss of item. For all the negative and and positive reimbursement, I credited/deducted from my expense total.

With this, I can use my script to accept CSV file and convert it into IIF files which I use to directly import into Quickbooks Desktop. Each row in the CSV is broken down into Credit Memos, Invoices, Payments, so I can have Quickbooks do the heavy lifting through reports. From these Credit Memos and Invoices, everything is broken down into different “Items.” With this new system, I can pull Gross Sales, Refunds, Order Retrocharge, and Expense with one click through memorized reports.

Thanks everyone for the advice and suggestions. It helped me figure it out piece by piece.