How to Read Your Reimbursement Report: Decoding the Jargon in Seller Central
Amazonβs Seller Central dashboard is a masterpiece of engineeringβif your goal is to sell products. If your goal is to audit your own finances, however, it can feel like trying to read a foreign language while wearing a blindfold. For the modern seller in 2026, navigating these reports isn't just an administrative chore; it is a critical survival skill.
When you scale your brand, you aren't just managing inventory; you are managing a massive data stream. Hidden within that stream is a "silent tax" that averages 1% to 3% of your total annual revenue. On a $1M brand, that is $30,000 that stays in Amazon's pocket unless you know exactly which report to pull and how to translate the jargon within it.
In this guide, we are going to break down the "alphabet soup" of Amazon reports so you can claim what is rightfully yours.
The 2026 Reporting Landscape: Where to Look
Amazon has updated its reporting structure significantly over the last few years. The "Inventory Ledger" is now your primary source of truth. To find your data, navigate to:
Reports > Fulfillment > Inventory Ledger
Once there, youβll encounter a wall of data. To make sense of it, you need to understand the four primary buckets of jargon.
1. Decoding "Adjustment Reason Codes"
When Amazon "loses" or "finds" an item, they don't just say "Oops." They use specific codes. If you see these on your Ledger, your ears should perk up:
Code E (Damaged at Amazon Fulfillment Center): A warehouse worker accidentally ran over a pallet or dropped a box.
Code M (Missing): An item was scanned into a shelf but has vanished into the warehouse "void".
Code F (Found): Amazon located a missing item. Warning: If Amazon "finds" a unit, they may use it to offset a previous reimbursement they gave you.
Code Q (Damaged by Carrier): Your inventory was destroyed while being moved by an Amazon-partnered carrier.
Expert Note: Always look for "M" (Missing) entries that are not followed by an "F" (Found) within 30 days. That gap represents money you are likely owed.
2. Understanding "Fair Market Value" (FMV)
One of the biggest points of confusion is how much Amazon actually pays you back. It isn't a random number, and it isn't just your "cost of goods".
According to Amazon policy, they must pay you the Fair Market Value of the item. Think of this as Amazon "buying" the lost item from you at the price you would have sold it for to a customer.
Formula For Reimbursement = Sale Price - Referral Fee + Fulfillment Fee
3. The "Ghost Refund" Terminology
The "Ghost Refund" (or Unreturned Item) is the most common hidden leak. In your Customer Returns Report, you will see:
Refund Issued: Amazon gave the customer their money back immediately.
Return Status: If this says "Pending" or "Not Received" after 45 days, Amazon is supposed to reimburse you.
The jargon to watch here is "Disposition." If an item is returned as "Sellable," it goes back into your stock. If it is "Defective" or "Customer Damaged," Amazon doesn't owe you a dimeβbut if it never arrives back at the warehouse at all, they owe you the full FMV.
4. The 60-Day "Claim Window" (The 2026 Deadline)
In the past, sellers had a generous amount of time to find these errors. In 2026, the rules have tightened. For most warehouse-related issues, you now have a strict 60 to 90-day window to file a claim.
If you are reading a report from four months ago and find a massive error, you may be too late. This is why monthly "Ledger Audits" are no longer optionalβthey are a requirement for margin protection.
Why "Doing it Yourself" Often Fails
Most sellers try to audit their accounts manually once a year. They realize that comparing thousands of rows of spreadsheet data across the Inventory Ledger, Customer Returns, and Payments reports is exhausting.
Sellers struggle because:
Data Lag: Amazonβs reports don't always sync in real-time. An item "Missing" on Monday might be "Found" on Thursday.
The Burden of Proof: Amazon requires specific "Transaction IDs" and proof of ownership (like your stamped Bill of Lading) to approve a claim.
Automated Limits: Amazonβs own automated reimbursement scripts miss "edge cases," such as items misclassified during the inbound process.
Your 3-Step Audit Framework
If you want to start decoding your reports today, use this simple framework:
Step 1: The Discrepancy Check. Compare your "Units Shipped" on your manifest to "Units Received" on your Inbound Performance report. Look for the "Reconciliation Gap."
Step 2: The 45-Day Return Audit. Export your Customer Returns report and filter for any refund older than 45 days that does not have a "Unit Returned" scan.
Step 3: The Adjustment Review. Filter your Inventory Ledger for "Adjustment" codes like M (Missing) or E (Damaged) and cross-reference them against your Reimbursements Report to see if a payout was actually triggered.
Final Thoughts: Protecting Your Hard-Earned Capital
Reimbursements aren't a "bonus" or a "gift" from Amazon; they are a recovery of your working capital. As advertising fees and shipping costs rise in 2026, protecting that 1% to 3% of your revenue is often the difference between a struggling brand and a thriving one.
Decoding the jargon is the first step. Taking action before the 60-day window closes is the second.
Stop Fighting the Spreadsheets
Does reading the "Inventory Ledger" sound like a nightmare? At ARD Reimbursements, we do the heavy lifting for you. We use expert oversight to audit your account, decode the jargon, and file the cases so you can focus on scaling your business.