Amazon Promotion and Sponsored Products Accounts

Specific Amazon codes in Xero Specific Amazon codes in Xero

The other day I was going through my amazon seller fees for the month. I recently launched my first effective Amazon promotion and wanted to see what it looked like in my accounting software. Mostly, I wanted an overview of how much I have given away in order to create the recent promotion related sales. I use A2X and when I did my initial mapping “Amazon Promotion” was not mapped. This is because my Amazon account had not yet done any successful promotions.

Mapping the promotion was no big deal because I made a code for "Amazon Promotion" when I set up my Amazon specific codes in Xero. The A2X “accounts” button was red instead of blue which let me know that something was not mapped. It only took me a minute click on the detail and notice that it was the Amazon Promotion. I then mapped it.
I previously set Amazon Promotion Cost up as its own coded expense in Xero so it was super fast I previously set Amazon Promotion Cost up as its own coded expense in Xero so it was super fast

Having a successful Amazon Promotion had an unintended result for me

After I had fixed my mapping issue it occurred to me that I have not been tracking my Amazon Sponsored Products/Advertising Campaign expenses. I could not have been. When I looked in my Xero Profit & Loss report there was no line for the coded account I made: Amazon - Ads; Cost Per Click. No line in the PNL means that there has not been any Amazon Sponsored Product related costs recorded.
Amazon Sponsored Products or Ads does not exist in the PNL Amazon Sponsored Products (Amazon - Ads; Cost Per Click as I set it up) does not exist in my PNL

Where Does Amazon Sponsored Products Money Come From

How was I paying for my Sponsored Products?

When I initially set up my Amazon account it was not set up to deduct Amazon Sponsored Product fees from my Amazon seller account balance. Instead, I set up my credit card as the method of payment. Either way is totally fine, but I had to know how to switch it if need be.

How do I change payment for my Amazon Sponsored Products?

Changing my method of payment was a lot easier than I though. It only took a second so it was a little embarrassing that it took me looking deeper into my Profit & Loss to figure it out. Just go to Settings > Account Information > Charge Methods for Advertising.

How to change sponsored products billing

The question now is: do I want my credit card to be charged and reconcile it to Xero myself, or do I choose to deduct the cost of advertising from my Amazon seller account balance and let A2X do the work? Either way is fine. I personally like using my credit card for everything because I get frequent flyer miles. Choose what works for you.