Amazon Reimbursements
Definition
Payments Amazon makes when FBA inventory is lost, damaged or a customer return is not received back. They should be tracked and recorded against inventory, not treated as extra revenue.
Want a deeper explanation?
Reimbursements are Amazon paying you back for inventory it lost or damaged. Treating them as sales inflates revenue and leaves units on your books that no longer exist.
Recording them against the inventory loss keeps both your stock count and your margins accurate. Watch for: reimbursements that are noticeably lower than the units you know went missing, since claims often need to be filed before Amazon pays.
Example
Amazon reimburses $640 for 32 units lost at a fulfillment center; those units come off inventory and the reimbursement offsets the loss.