Export campaign-wise spend from each ad console, then pull the settlement or payment report, ad invoices and wallet statements for the same period. Confirm how each platform collects ad fees, compare pre-tax figures, classify differences as timing, credits, wallet top-ups or tax, and raise tickets with evidence for whatever stays unexplained. Repeat every month.
Why ad spend rarely matches settlement deductions
Commissions, shipping and collection fees attach to an order. Ad charges attach to a campaign, a click or an impression, and are often billed on a different cycle. So the ad console, the settlement report and the tax invoice can show different figures for the same month, and each can be correct.
The goal of an audit is not a perfect match on day one. It is to explain every rupee of difference and isolate what is a genuine overcharge.
Step 1: Confirm how each platform collects ad fees
Before comparing numbers, establish the collection route for each account. Depending on your setup and the ad programme, charges may be netted from the settlement, billed through a separate invoice, or drawn from a prepaid ad wallet or credit balance. Check the billing section of your ad console, your seller agreement and the ad terms, and ask your account manager to confirm in writing. Terms change, so confirm the latest.
Record these for each platform:
- Collection route: settlement deduction, invoice or wallet
- Billing cycle and cut-off time
- The entity and GSTIN being billed
- The report or statement where the charge appears
Step 2: Pull the right reports for the same period
Use one identical date range across all sources. Report names change from time to time, so look for them in your seller dashboard rather than relying on memory.
- Ad console export: campaign-wise, daily spend, including any credits for invalid activity.
- Settlement or payment reports: from Flipkart and Amazon, with every ad-related line.
- Ad invoices and wallet statements: with the tax breakup shown separately.
- Bank statement: only where ads are invoiced and paid separately.
Step 3: Build a three-way match
Put the sources side by side for each platform and month. Always compare pre-tax with pre-tax.
| Source | Figure to capture |
|---|---|
| Ad console | Net spend after credits |
| Settlement or payment report | Ad charges deducted |
| Invoice or wallet statement | Billed amount, tax shown separately, top-ups |
Variance = console net spend minus charges in settlement or invoice. If the monthly gap is large, drill down to weekly or daily level to find where it starts.
Step 4: Classify every variance
Sort each difference into a bucket before you escalate anything:
- Timing: campaigns running across month-end or settlement cut-offs.
- Credits and reversals: invalid-click adjustments or refunds that appear in a later period.
- Wallet movements: a top-up is not spend, so match spend, not deposits.
- Tax: make sure you are not comparing a tax-inclusive figure with a pre-tax one. Confirm treatment and input credit with your tax adviser.
- Possible errors: charges for paused or ended campaigns, duplicate lines, or the wrong account or entity.
Whatever remains unexplained becomes your dispute list.
Step 5: Raise recovery cases and repeat monthly
For each unexplained item, prepare the campaign ID, date, console export, settlement line, amount and the clause or ad term you rely on. Raise it through seller support, note the ticket number and track ageing. Check your seller agreement and ad terms for any dispute window, since late claims may be rejected.
Done by hand across many months, this gets heavy. MarketplaceMetrics by Fundle reconciles marketplace sales and settlements, checks fees against agreed terms and tracks recovery cases. Myntra Excel reports are reviewed today and other marketplaces are in scope discussion, so confirm coverage for Flipkart and Amazon first.
Worked example
Illustrative figures only. A brand compares one month of ad spend against settlement deductions, pre-tax.
| Item | Amazon (₹) | Flipkart (₹) |
|---|---|---|
| Ad console net spend | 1,00,000 | 50,000 |
| Ad charges in settlement or invoice | 1,04,000 | 55,000 |
| Variance | 4,000 | 5,000 |
| Explained: month-end timing | 3,000 | 2,500 |
| Unexplained, to raise as a case | 1,000 | 2,500 |
Only ₹3,500 in total goes to support with evidence. The other ₹6,500 is documented as timing and carried into the next month's check.
Questions and answers
Are ad charges always deducted from the settlement?
No. Depending on the platform, programme and your account setup, ad fees may be netted from settlement, invoiced separately, or drawn from a prepaid wallet. Confirm the route in your ad console billing section and seller terms before reconciling.
Which reports do I need for the audit?
You need the campaign-wise ad console export, the settlement or payment report, ad invoices or wallet statements, and a bank statement if ads are paid separately. Use the same date range and cut-off for all of them.
How often should I audit ad spend?
Monthly is a practical rhythm, aligned with your close. Weekly checks help if spend is heavy. Do not wait too long, because seller agreements and ad terms may limit how late you can dispute a charge.
Should I compare amounts with or without tax?
Compare pre-tax figures on both sides so tax does not distort the variance. Then check the tax shown on the invoice separately. For input credit and the applicable rate, confirm with your tax adviser and the latest rules.