When using the Per-Payout Summary sync setting for the integration, Synder consolidates all transactions related to a specific payout. This makes it easier to manage and reconcile transactions in your accounting books.
Occasionally, after syncing a summary, you may notice the line labeled as “Unidentified funds” in the journal entry synced to your books. This guide explains what happens in these situations and how to handle them using Synder.
Overview:
Understanding unidentified funds
This is a common case with Amazon summaries, for example, and typically represents the Account Level Reserve. If you look at the Payments Dashboard → Statement view, you’ll easily spot this reserve amount (see the screenshot below).
Amazon defines the Account Level Reserve as an amount held in reserve to ensure that you have enough funds to fulfill any claims or chargebacks. The reserve amount is determined by various things: how long you’ve had your account with Amazon, whether you have any unresolved disputes, etc. So amounts may vary greatly.
Such reserve amounts are mostly not recorded by third-party apps. However, Synder’s goal is to reflect the real-life money flow and mirror what your payment provider shows you in reports. That’s why such amounts are reflected in the journal entry or invoice recorded after synchronization with Synder.
For a more detailed analysis, you can refer to the Amazon report, which corresponds to the summary. This report will show you the breakdown of funds and help identify what Synder recognizes as “Unidentified funds.”
How it appears in your books
In the journal entry synced by Synder, you’ll find the “Unidentified funds” line affecting your clearing account.
With the “Per-Payout Summary” setting enabled, all transactions for a particular payout are aggregated. This ensures your Amazon clearing account is balanced, as the journal entries include these payouts. This means that you’ll see a positive amount on your Amazon Clearing account (e.g. USD 9.11).
There are two ways of handling this positive amount left on your Amazon clearing in books:
- Leave it as it is. With the sync of new summaries, you’ll always see this reserved amount as ‘pending’ in your clearing account, just like in Amazon, as of the latest synchronization date. If you prefer Synder to reflect the real Amazon money flow, this is the option for you.
- Balance out this amount with a new line in the current journal entry or in an adjusting journal entry according to the preferred bookkeeping flow. This way, your clearing account’s balance will be zero.
It’s always best to clarify which way to go with your accountant, as certain businesses may have peculiar bookkeeping flows and specific recommendations on handling such edge cases.
Streamlined bank reconciliation
For step-by-step instructions on reconciling Amazon summaries, please refer to our detailed reconciliation guide.
This setup ensures that your financial reporting for Amazon transactions is both comprehensive and straightforward, allowing for better financial management and control.
Reach out to Synder Team via online support chat, phone, or email with any questions you have – we’re always happy to help you!