Amazon Debit Balances | Simply explained

Debit Balances

Debit balances occur when vendors owe money to Amazon, arising in situations where the amount a vendor owes surpasses the amount they are to receive. This commonly happens due to transactions that create a negative account balance requiring payment, or when future payables are projected to be higher than future receivables.

Common Causes

Debit balances typically result from various deductions and charges, including:

  • CoOp (Cooperative advertising fees)
  • Returns processing costs
  • Non-Compliance Infractions penalties
  • Other chargebacks and fees that exceed receivable amounts

Management Strategies

To manage debit balances, Amazon may implement holdback procedures where amounts are held back from current payables to avoid or minimize future debit balances. These holdbacks serve as a buffer to cover potential chargebacks and other amounts owed.

Payment Process

When a debit balance occurs, vendors must follow specific steps to address the situation:

  • Bank Account Details: Ensure the correct bank account is listed in the accounts payable ledger
  • Payment Reference: Include the payee code or vendor code in the payment reference, formatted as: Payment debit balance: Payee code or vendor code
  • Currency and Amount: Pay the accurate amount in the correct currency

Banking Information

For European transactions, specific bank details are provided for regions like Germany, Poland, and the Czech Republic:

  • Account Holder: Amazon EU SARL
  • Bank: Bank of America, D.A.C.
  • SWIFT/BIC: BOFAIE3XVAM
  • IBAN: IE60BOFA99006208502830

Proper adherence to these payment procedures ensures seamless processing and resolution of debit balance situations.

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