If you notice a Vendor Expense in your QuickBooks Online inventory report, then it's because Amazon has reimbursed you with inventory instead of cash. We create a Vendor Expense so that you'll have the correct inventory count.

Amazon reimbursements for inventory that has been lost or damaged in the warehouse is usually paid in cash, but Amazon will sometimes reimburse you with inventory. 

You may also notice a Vendor Expense for reimbursement reversals. These occur when Amazon reimburses you with cash and later finds the inventory. They then issue a reimbursement reversal, taking back the cash and returning the inventory.

Learn more about Vendor Credits.

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