For sellers that use Amazon for loans:

ConnectBooks brings in these loan transactions as a service item called Amazon Loan linked to a GL account with the same name. Note - This is an “other current liability account type”. In practice, when the loan is initially paid to the seller (usually as part of the Settlement money), an invoice for the loan amount is created with the above-mentioned loan item.

This increases your GL Amazon loan account with the amount borrowed. Each month when a loan payment is deducted from your cash Settlement, a credit memo is created. This procedure uses the same Amazon loan item, which decreases the “Amazon Loan” balance. At the end of the loan term, it is necessary to make an adjustment to account for and record the interest expense. As ConnectBooks does not get access to your loan statements, only loan installment payments and loan payouts.

For users starting to use ConnectBooks and with an active loan being paid back:

If the QuickBooks is a new file, it is necessary to first record the current outstanding balance of the loan in a new GL account. Use the name, Amazon Loan, which is the account name ConnectBooks uses to pay the installments.

If the QuickBooks file is not new, the liability account name under which the Amazon loan and installments were recorded initially, should be switched to, or merged with the “Amazon Loan” liability account, which ConnectBooks uses from thereon. In addition, there is an option to have ConnectBooks use the sellers preferred loan account name.

After ConnectBooks brings in a loan payment or payout, go to Item List, and find the service item called Amazon Loan. You are now able to edit this item and link it to your preferred loan account name as well as switching previous entries that used this item, to the updated account name.

Recording interest for an Amazon Loan:

After the loan is paid in full:

Your Amazon Loan account should now reflect a $0 balance (unless another Amazon loan was taken).