Payments on Vendor Central: What do you need to know?

Payments on Vendor Central: What You Need to Know

Managing payments on Amazon Vendor Central is a key element of effective collaboration with the platform. From payment terms and invoicing to tracking transactions, every step requires precision and attention. In this article, we’ll cover the most important aspects of payments on Vendor Central and share tips on how to avoid issues that could affect your company’s finances.

Payment Terms - How to Keep Them Under Control

Amazon applies different payment terms depending on the agreement with the vendor. Standard cycles are 30, 45, 60, or 90 days, but other terms may apply for larger orders or custom arrangements.

What to know about payment terms:

• Understand your contract: Check the payment terms in your agreement to avoid surprises.

• Track your payment schedule: Amazon processes payouts in set cycles, so regularly check their status in the dashboard.

• Act on delays: If you notice a missing payment, contact Amazon Support immediately.
  
  

Invoicing – The Foundation of Proper Payments

On Vendor Central, vendors are required to issue invoices that meet specific requirements. Amazon will not process payments for orders without a correctly submitted invoice.

Key invoicing rules:

• Accuracy of data: Make sure invoices include correct details on products, prices, discounts, and orders.

• Avoid errors:

  • If your invoice is rejected, use an underscore (_) instead of a dash (-) in the invoice number when resubmitting.

  • For issuing corrections, contact Amazon Support.

• No cancellations after processing: Once Amazon has processed an invoice, it cannot be canceled.
  
  

Keeping invoices in order is crucial for maintaining cash flow - without them, you won’t get paid.

Remittance - Understanding Payments and Deductions

Amazon uses various payment and deduction types that are tracked in remittance. Here are the most common categories:

• Payments for POs (Purchase Orders): Marked with PO numbers and warehouse codes.

• Deductions for agreements: Labeled as Co-Op, Damage Allowance, SPA, etc.

• Advertising costs: Identified by the invoice number for the campaign.

• Return costs: Labeled with a RETURN ID.

• Reserves: Shown as Provision for aged receivables - for deferred payments.

• Chargebacks: Penalties for violations or refund adjustments, marked with invoice numbers ending in SINV or SINVR.

• Undelivered products: Marked with codes like SC, SCR, etc.
  
  

How to monitor payments and deductions:

• Review every transaction: Regularly analyze payouts and deductions in the Vendor Central dashboard.

• Verify deductions: Ensure all deductions match your agreements and actual costs.

• File disputes when needed: If you find an unjustified deduction, open a case with Amazon and attach supporting documents.
  
  

Practical Tips - How to Avoid Payment Issues

• Monitor remittance regularly: Confirm all transactions match your expectations.

• Stay on top of invoicing deadlines: Avoid delays that could block your payments.

• Keep records organized: Store copies of invoices and payment confirmations for quick reference.

• Be proactive: If you spot a payment issue, don’t wait - contact Amazon Support right away.
  
  

Conclusion: Payment Management Is the Key to Success

Properly managing payments on Amazon Vendor Central requires focus and consistency. The foundation of success lies in:

• Understanding payment terms and schedules.

• Accurate and compliant invoicing.

• Regularly monitoring transactions and addressing discrepancies quickly.
  
  

Amazon offers vast opportunities for collaboration, but it’s up to you to ensure your company’s finances are well-managed. Remember, cash flow is the lifeblood of your business - without it, you can’t grow or survive.