Create Myntra as a sundry debtor. Book sales and returns against it, post commission and fees from Myntra's invoices as expenses with input GST, and record TCS and TDS as receivable ledgers. When the bank payout arrives, receive it against the Myntra ledger. A near-zero balance means your books match the settlement.
Decide your booking approach first
Before you open Tally, agree on one method with your accountant and stick to it. There are two common choices:
- Settlement-based booking: you book entries when Myntra's settlement report is released. It is simpler, but sales and returns land in the period of payout, not the period of the order or invoice.
- Order or invoice-based booking: you book sales and returns by invoice date and clear them when settlements arrive. It takes more effort but gives a truer monthly view and a visible unsettled balance.
Whichever you pick, GST timing, TCS credit and TDS treatment depend on your facts. Confirm the approach with your tax adviser, and check the latest rules and your seller agreement rather than relying on a blog.
Set up the ledgers you need
A small, fixed set of ledgers keeps every month consistent:
- Myntra under Sundry Debtors: the control ledger for everything Myntra owes you or you owe Myntra.
- Myntra Sales under Sales Accounts, ideally split by GST treatment or state as your setup needs.
- Myntra Sales Returns under Sales Accounts or as a contra, as your accountant prefers.
- Myntra Commission and separate ledgers for other fees (shipping or logistics, fixed fee, collection fee, marketing or ad charges) under Indirect Expenses. The names must match the line items on the Myntra invoice or settlement report.
- Input GST ledgers for tax charged on Myntra's fee invoices.
- GST TCS Receivable and TDS Receivable under Current Assets.
- Your bank ledger for payouts.
Keep fees in separate ledgers. A single lumped expense ledger makes it impossible to spot when one charge changes.
Book sales and returns against the Myntra ledger
Record each sale as a sales voucher with Myntra as the party, not the end customer. Use your normal item, GST and place-of-supply setup. You can post daily or monthly summaries by GST category, provided you can trace the totals back to the Myntra sales report.
Book returns as credit notes against the same Myntra party. Use the return or RTO data from the report, and note that a return can fall in a different month from the original sale. Do not net returns silently into sales, because you will not be able to reconcile later.
Keep the Myntra order or reference number in the narration or a reference field. It makes matching a disputed settlement line much faster.
Book commission, fees and tax deductions
Commission and fees are charges Myntra raises on you, so they are expenses, not a reduction of sales. Book them as a purchase or journal entry in the Myntra party account:
- Debit the commission or fee ledger with the taxable value.
- Debit Input GST with the tax shown on Myntra's invoice.
- Credit Myntra with the total.
Use the amounts and tax shown on Myntra's invoice and compare them to your agreed terms. Rates, fee slabs and deduction rules sit in your seller agreement, rate card and settlement report, and they change. Check the current versions instead of assuming old rates.
TCS under GST and TDS, where deducted by the marketplace, should be booked as receivable ledgers (credit Myntra, debit the receivable). Whether and how much applies is a tax question, so confirm with your tax adviser and check the figures against the certificates and GST portal data.
Book the settlement and clear the ledger
When money lands, pass a receipt voucher: debit Bank, credit Myntra. Use the payout amount and reference from your bank statement and settlement report, one receipt per payout.
Now check the Myntra ledger. If sales, returns, fees and deductions were booked correctly, the balance should be close to zero for fully settled periods. The remaining balance should equal the orders Myntra has not yet settled, which you can verify in the report. Anything else is a difference to investigate.
Month-end checks that catch errors
Run these checks before you close the month:
- Does the Myntra closing balance match the unsettled amount shown in the latest settlement report?
- Do the totals of commission and each fee match the Myntra invoices?
- Are returns booked in the right period, and do any returns have no matching sale?
- Do the TCS and TDS amounts match what Myntra reports and what appears on the tax portals?
- Are there orders paid short, or fees charged that do not match the agreed terms?
Doing this in spreadsheets is workable at low volume. At higher volume, a tool like MarketplaceMetrics by Fundle can reconcile sales and settlements, check fees against agreed terms and track returns and recovery cases. Myntra Excel reports are reviewed today, and other marketplaces are in scope discussion.
Worked example
Illustrative example only. All figures are made up to show the flow, and output GST is left out for clarity. Use the actual amounts and tax on your Myntra reports and invoices.
| Step | Entry | Myntra ledger effect (₹) |
|---|---|---|
| Sales | Dr Myntra, Cr Sales | Dr 1,00,000 |
| Returns | Dr Sales Returns, Cr Myntra | Cr 20,000 |
| Commission and fees ₹15,000 plus input GST ₹2,700 | Dr Commission, Dr Input GST, Cr Myntra | Cr 17,700 |
| TCS ₹800 and TDS ₹700 | Dr TCS and TDS Receivable, Cr Myntra | Cr 1,500 |
| Settlement received | Dr Bank, Cr Myntra | Cr 60,800 |
Net position before the receipt: 1,00,000 − 20,000 − 17,700 − 1,500 = ₹60,800. The bank receipt of ₹60,800 brings the Myntra ledger to zero. If the payout were ₹59,000, the ₹1,800 gap is what you would investigate as a short payment or an unbooked deduction.
Questions and answers
Should I book Myntra as a customer or a vendor in Tally?
Create Myntra as a Sundry Debtor and use it as the party for sales, returns, fees and settlements. That keeps one running balance of what Myntra owes you. Fee invoices from Myntra can still be booked against the same party.
Where should Myntra commission be booked in Tally?
Book commission as an indirect expense in its own ledger, with input GST as shown on Myntra's invoice, and credit the Myntra party. Do not net it off sales. Confirm GST credit eligibility and treatment with your tax adviser.
How do I book Myntra returns in Tally?
Pass a credit note against the Myntra party for each return or RTO, using the return data in your Myntra report. Keep the order reference in the narration so you can link it to the original sale, even when it falls in a different month.
Why does my Myntra ledger balance not match the settlement?
Common causes are unbooked returns, fees booked at different amounts from the invoice, missing TCS or TDS entries, timing gaps between sale and payout, or short payments. Compare ledger totals line by line with the settlement report and your agreed terms.