Amazon Vendor Central – Invoicing Processwp_admin
When to Submit Invoice to Amazon Vendor Central
Amazon recommends its suppliers to submit invoice for the shipments as soon as the Advance Shipment Notice (ASN) are submitted. As Amazon calculates the payment due date from the date the invoice received and not based on the printed invoice date, it is better that the suppliers submit invoice as soon as the shipments leave their facility
Invoice Creation process
Invoices can be created manually in Amazon vendor central or submitted automatically using EDI (Electronic Data Interchange). In either case the invoice should have the below information so that it can be processed by Amazon Accounts Payable system
- Unique Invoice Number
- Purchase Order Number
- Shipment Number
- Shipment Tracking Number
- Items included in the invoice
- Quantity Invoiced
- Price for each item
- Total invoice Amount
Based on the above information, Amazon will validate each invoice
Payment Dashboard in Vendor Central
Suppliers can use the payments dashboard in the vendor central to view the status of all their invoices. These dashboards will show the list of invoices in Amazon system. It will also show the payment expected date for pending invoices
Invoice Status in Vendor Central Dashboard
- Incomplete – Invoice entered but not yet submitted
- Submitted – Invoice Submitted and under review
- Rejected – Invoice rejected due to some errors
- Proof of Delivery Required – Amazon requires proof of delivery (POD) due to some quantity discrepancy issue
- Approved for Payment – Invoice has been approved and will be paid on due date
Deductions on Invoices
Many a times, suppliers will not get the full invoices paid. This is due to the deductions. Deductions appear as separate transactions in the vendor central dashboard. General deductions are
- Chargebacks – There are many reasons why Amazon wants to deduct some amount from the invoices. This could be due to reasons like late submission of ASN, ASN discrepancy, label issues etc. Check for other blog posts on Amazon chargebacks and how to avoid them
- Marketing Charges – Co op also known as Contra Cogs are charges assigned to suppliers for marketing, advertisement and promotion. As Amazon is fulfilling these products, the charge the marketing charges to the suppliers
- Shortage Claims – Quantity received is less than the quantity invoiced or the items are rejected due to quality issues
- Provisions – Amazon will create a provision from the supplier payable to reserve for any expected returns or quality issues
Amazon will send a remittance advice as soon as a payment is released. This remittance advice will have details like invoice number, amount paid, amount deducted etc. For EDI vendors , Amazon also sends EDI 820 remittance advice.
Advantage of using an EDI system over manual process
The process of submitting invoices can be done manually in vendor central. But using an EDI system like TPSynergy automates the entire process.
Invoices are created automatically in vendor central using EDI connection. As the system already has the details of the order price and quantity shipped, it creates accurate invoice. This avoids manual errors in invoice creation.
EDI systems can also push the invoices into in-house ERP systems like Oracle, SAP and QuickBooks. Also EDI systems can pull the invoices created in the ERP system and send it in EDI format.
Once the shipments are picked up by the carrier, just clicking one button in the EDI system will send the invoice to Amazon so that the supplier does not forget to add the invoice in the vendor central.