Whenever you sell a product, ConnectBooks deducts the item from inventory by creating an invoice in QuickBooks. When a product is returned, ConnectBooks adds it back to inventory by creating a credit memo in QuickBooks.

When a product is returned, Amazon inspects it to see if it is sellable. During the inspection, we assume the item is in good condition and add it back to inventory. If you prefer to assume the item is damaged and not add it to inventory until Amazon confirms it is sellable, please contact support to change this setting.

If Amazon finds the item is unsellable, we remove it from inventory using unsellable refunds on our reports, and create a $0 invoice in QuickBooks to show this.

Example: You sell a phone, so we remove it from inventory. If there's a refund, Amazon takes about 2 weeks to check if it can be sold again. During this time, we add the phone back to inventory. If Amazon later says it's unsellable, ConnectBooks removes it using unsellable refunds.

If Amazon reimburses you for the damaged return, we record it as an adjustment.

Since only the seller sees the returned items, ConnectBooks adds them back into inventory automatically. Inspect the returns when they arrive, and remove any damaged items from your QuickBooks inventory yourself.

If the item is damaged and doesn't go back into inventory, you lose its value. This shows as a loss in QuickBooks and on the ConnectBooks P&L report.

You see the Unsellable Refunds option only when your store adds returns back to inventory during the Amazon inspection. This is the default.

Can I change how returns are handled?

Yes. Please contact support, and we'll change the setting for your store.

How do I hide unsellable refunds on my P&L report?

Open the Type filter on the P&L report, untick Unsellable Refunds, click Done, then click Run Report.

Why is there a $0 invoice in QuickBooks?

Amazon found the returned item was unsellable. The $0 invoice shows that the item was removed from inventory.