Should I book Amazon revenue by disbursement date or order date?
Accrual accounting books revenue when the order ships (order date). Cash accounting books revenue when Amazon disburses (payout date). GAAP and most tax authorities require accrual. Nova's SKU-level P&L uses order date for revenue recognition and matches costs to the same period, so margins reflect actual operating performance.
Jul 26, 2026 · 3 min read
Order date (accrual)
Revenue recognised when the order ships. Matches revenue and costs (COGS, fees, ad spend) to the period they occurred. Required for GAAP and most tax filings above small-business thresholds.
Disbursement date (cash)
Revenue recognised when Amazon pays out. Simpler for very small sellers but distorts monthly margin: a settlement paid in April includes orders from March.
What Nova uses
Nova books revenue and matched costs on order date so monthly P&L reflects true operating performance. Cash-in views for treasury are a separate lens.
Frequently asked questions
Is accrual accounting required for Amazon sellers?
For GAAP-compliant financials and most tax authorities above small-business thresholds, yes. Consult your accountant.
Can I switch methods mid-year?
Not without an accounting policy change and typically tax authority notification. Consult a CPA.
Does Amazon settlement date match calendar month?
No. Settlement periods span roughly 14 days each and straddle month ends.
Does Nova support both views?
Nova's P&L uses order-date accrual. Cash views for treasury planning are a separate operational concern outside Nova's scope.
See this in Nova
Nova surfaces this metric per SKU so you can act before your next monthly close catches it.
Try Nova free for 14 daysRelated questions
Where do I find the Amazon settlement report?
Amazon settlement reports live in Seller Central under Reports > Payments > All Statements. Each report covers one settlement period (usually 14 days) and lists every transaction that affected the payout: orders, refunds, fees, adjustments, service fees, and reserves. Download as CSV or the flat file to reconcile.
How do I track profit at the SKU level on Amazon?
SKU-level profit requires matching every revenue and cost line to the SKU that generated it. That means pulling settlement reports, product-level ad spend, refunds, storage allocation, and COGS, then attributing each. Doing this manually in Excel takes 4 to 8 hours per month per account; automated tools reduce it to a dashboard view.
Are Amazon returns deducted from seller payouts?
Yes. When a customer returns an FBA order, Amazon refunds the buyer and deducts the refunded amount from your next payout. Amazon also refunds most of the referral fee (keeping a $5 or 20% refund administration fee, whichever is lower) but does not refund the FBA fulfilment fee. Returns can also trigger a returns processing fee in apparel and shoes.