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

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

Managing payments on Amazon Vendor Central is the foundation of effective collaboration with the platform. From payment terms, through invoicing, to monitoring transactions – every stage requires precision and attention. In this article, we will discuss the key aspects of payments on Vendor Central and suggest how to avoid problems that may affect your company's finances.

Payment terms – how to control them?

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

What should you know about payment terms?

• Understand the terms of the agreement: check what payment terms apply in your agreement to avoid surprises.

• Monitor the payment schedule: Amazon makes payments on specific cycles, so regularly check their status in the dashboard.

• Respond to delays: if you notice a missing payment by the expected date, contact Amazon support.

Invoicing – the basis for correct payments

On Vendor Central, the supplier is required to issue invoices that must meet specific requirements. Amazon will not pay for orders without a correctly issued invoice.

Key invoicing rules:

• Accuracy of data: ensure that the invoice contains correct information about products, prices, discounts, and orders.

• Avoid mistakes:

  
  

  • If the invoice is rejected, use an underscore (_) instead of a dash (-) in the invoice number to resubmit it.

  • If a correction needs to be issued, contact support.

  
  

• No possibility of cancellation: once the invoice has been processed by Amazon, it cannot be cancelled.

• Keeping track of invoices is essential for financial liquidity – without them, you will not receive payment for deliveries.

Remittance – understanding payments and deductions

Amazon applies different types of payments and deductions that should be monitored in remittance.

Common categories:

• Payments for PO (Purchase Orders): marked with the PO and warehouse number.

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

• Advertising costs: marked with the invoice number for the campaign.

• Return costs: described as RETURN ID.

• Reserves: Provision for aged receivables – related to deferred payments.

• Chargebacks: penalties for violations, marked with the invoice number ending in SINV or SINVR.

• Undelivered products: marked with SC numbers, SCR, etc.

How to monitor payments and deductions?

• Check each transaction: regularly analyze payments and deductions in the Vendor Central dashboard.

• Control errors: ensure that deductions match agreements and actual costs.

• Submit claims: if you notice an unjust deduction, report the case to Amazon, including evidence and transaction details.

Practical tips – how to avoid payment problems?

• Regularly monitor remittance: check if all transactions meet your expectations.

• Keep track of invoicing deadlines: avoid delays in issuing invoices to not block payments.

• Keep documentation: store copies of invoices and transaction confirmations so you can find them quickly if needed.

• Be proactive: if you notice a problem with payment, do not wait – report it to Amazon support.

Summary: Managing payments is the foundation of success

Proper management of payments on Amazon Vendor Central requires attention and consistency.

The foundation of success is:

• Understanding payment terms and deadlines.

• Accuracy in invoicing.

• Regular monitoring of transactions and responding to any irregularities.

Amazon offers a wide range of collaboration opportunities, but it is up to you whether your company's finances will be well managed.

Money is the essence of business – without it, survival is not possible.