🧾 What’s the Problem With the Old Way?
Until now, we adjusted inventory based on financial activity:
Orders → Inventory reduced
Refunds → Inventory optionally added back
Lost/Damaged Items etc. → Inventory updated only after Amazon reimbursed you
Removals/Disposals → Were ignored
The result? Your inventory didn’t match what FBA physically had—especially for returns, removals, and adjustments.
✅ What’s New?
We now support ledger-based inventory tracking, using Amazon’s Daily Inventory Ledger Report.
This new logic is available as an admin-enabled setting. When enabled:
Only orders reduce inventory right away.
All other FBA activity—refunds, returns, lost/damaged, removals—is updated the next morning for the previous day, based on Amazon’s ledger report.
Inventory and COGS will reflect real-time physical activity, not just financial transactions.
🏢 New Warehouses to Track Inventory Status
To reflect what Amazon reports, we now split FBA inventory into 3 types:
Warehouse | What it tracks |
FBA | Sellable inventory in Amazon |
FBA Unsellable | Unsellable items in FBA that can’t be sold |
FBA Removal | Inventory Amazon removed and sent back to you |
Examples:
Unsellable FBA return → The item is moved to the FBA Unsellable warehouse. It's not counted as a loss until you remove it from Amazon.
Amazon removes unsellable inventory (e.g., disposal or damaged returns to your warehouse) → You can choose if we should:
Automatically record an adjustment and count it as a loss, or
Move it to the FBA Removal warehouse.
Amazon removes sellable inventory → You can choose if we should:
Automatically record an adjustment and count it as a loss, or
Move it to the FBA Removal warehouse.
⚙️ How It Works
Every night, we pull Amazon’s FBA inventory activity for that day
We update inventory based on what Amazon reports: returns, removals, damage, lost items, etc.
COGS and inventory values update automatically, even if no money changed hands
📅 Transition Plan
We pick a cut-off date when you switch to the new method.
We create an adjustment for FBA inventory and split it:
FBA Sellable → FBA Warehouse
FBA Unsellable → FBA Unsellable Warehouse
From that date on, everything is handled by the new system
🛠 How to Enable
This setting is only available to admins. Contact our team if you’d like it turned on for your account.
🔍 Summary
Action | Old Way | New Way |
Order | Inventory reduced | Inventory reduced |
Return | Optional add-back on refund date | Only if Amazon reports return in FBA |
Adjustment /Lost | When reimbursed | When reported in FBA ledger |
Removal | Not tracked | Sent to FBA Removal warehouse or adjusted |
Damaged Return | Back to FBA | Sent to FBA Unsellable |