Amazon's DD+7 rule delays settlement posting until up to 7 days after the order is delivered. So orders shipped near period end won't appear in QuickBooks until the next period. If you need your books closed on time, a reversing journal entry is the fix. You accrue the unposted revenue and COGS at period end and reverse it on day 1 of the next period. The current period then shows what really shipped, and Amazon's settlement reconciliation keeps working as normal.
Step 1. Find shipped but unposted orders
In ConnectBooks, open the Order Report.
Select the Amazon store.
Click the date range. Set the dates to the period you are closing. For a December 2025 close, use 12/01/25 through 12/31/25.
Set Transaction Date to Shipped Date, then click Run Report.
Export the report to Excel.
In Excel, filter the Posted Date column to leave out any orders posted within the current period (December).
The remaining orders shipped in the period but will post in the next period.
Write down the totals of the Amount and COGS columns.
Step 2. Set up the Deferred Revenue account
In QuickBooks, create an account named Deferred Revenue and classify it as Other Income. Placing it under Other Income puts the accrual below the standard sales section on the P&L, so your core revenue figures stay the same.
Step 3. Record the accrual entry
Post this journal entry on the last day of the period (12/31/25):
Account | Debit | Credit |
Accounts Receivable | $17,906.83 | |
Deferred Revenue (Other Income) | $17,906.83 | |
COGS | $5,000 | |
Inventory | $5,000 |
This records the revenue and matches the related cost of goods sold in the period the sale was earned.
Step 4. Record the reversing entry
Post the reversing journal entry on the first day of the next period (1/1/26):
Account | Debit | Credit |
Deferred Revenue (Other Income) | $17,906.83 | |
Accounts Receivable | $17,906.83 | |
Inventory | $5,000 | |
COGS | $5,000 |
When the orders post through Amazon in the new period, ConnectBooks records them on the settlement post date as normal. The reversal prevents double counting.
Net effect on the books
December shows all revenue and COGS for orders shipped in December.
January shows only orders shipped in January.
Accounts Receivable and Inventory return to zero after the reversal, so nothing stays on the balance sheet.
Amazon settlement reconciliation keeps working on the post date.
How often to do this
Make this adjustment at any period close used for outside reporting, including:
Month end closes formally reported to stakeholders
Quarter end closes
Year end closes for tax and financial statements
For routine internal months, the timing difference is usually small and you can skip the entry.
Summary
The DD+7 rule pushes revenue into the period after the ship date. A reversing journal entry to a Deferred Revenue (Other Income) account fixes the period end cutoff without affecting daily reconciliation between ConnectBooks, QuickBooks and Amazon settlements.
Frequently asked questions
Which report do I use to find unposted orders?
The Order Report, with Transaction Date set to Shipped Date.
Which totals do I use for the journal entry?
The totals of the Amount and COGS columns, after you filter out orders posted in the current period.
Will this double count my sales?
No. The reversing entry on the first day of the next period cancels the accrual before the orders post.
Do I need to do this every month?
No. Use it for closes used for outside reporting, like quarter end and year end.