How to Post Amazon Settlements in Tally Prime

What you need before you open Tally Prime

Entries are only as good as the source data. Before posting, collect these for each settlement period:

• The settlement or payments report downloaded from Seller Central. Report names change, so confirm what is currently available in your account.
• Fee and commission invoices issued to you by the marketplace, which carry the GST you may claim as input credit.
• TCS and TDS details shown against the settlement. Do not assume a rate; check the seller agreement, the report itself and your tax adviser for current rules.
• The bank statement line for the payout credit.

Decide one posting level in advance: order-level (heavy, but traceable) or settlement-level summary (lighter, and fine if your sales vouchers already exist).

Set up the ledgers once

Create these ledgers so every settlement posts the same way:

• Amazon Receivable under Sundry Debtors, acting as the party ledger.
• Marketplace Commission and Fees under Indirect Expenses. Consider sub-ledgers for referral fee, closing fee, shipping fee and advertising if you want to analyse them.
• Input GST on Marketplace Fees under Duties and Taxes, split by CGST, SGST and IGST as your setup requires.
• TCS Receivable (GST) and TDS Receivable under Current Assets, so you can match them to your returns and Form 26AS or AIS later.
• Sales Returns and, if needed, a Marketplace Adjustments ledger for reimbursements or penalties.

Your tax adviser should confirm the correct group and treatment for each tax ledger in your books.

Post sales and returns before the settlement

A settlement is a payment against sales already made, so the sales must be in Tally first.

1. Record sales with a Sales voucher (F8) with Amazon Receivable as the party. Use invoice-wise or daily summary vouchers, whichever your GST workflow already follows.
2. Record customer returns with a Credit Note against the same party, matching the return period in the report.
3. Check that the net balance of Amazon Receivable for the period equals the sales less returns shown in the settlement report. If it does not, fix this now, not after posting the payout.

Skipping this step is the most common reason the party ledger never clears.

Post the settlement as one receipt voucher

Open a Receipt voucher (F6) and build it like this:

1. Credit Amazon Receivable for the gross amount being cleared (sales less returns for that settlement).
2. Debit the bank ledger for the net payout actually credited.
3. Debit Commission and Fees for the fee amount.
4. Debit Input GST on Marketplace Fees for the tax on those fees.
5. Debit TCS Receivable and TDS Receivable for amounts withheld.
6. Use the settlement ID as the voucher reference and put the period in the narration.

Debits must equal the credit. If a small difference remains, find its source in the report (reserve, adjustment, reimbursement) rather than pushing it into a suspense ledger.

Reconcile the bank credit and clear the ledger

Use Tally Prime's Bank Reconciliation to match the receipt voucher to the statement line. The bank amount must equal the net payout in the report, not the gross.

Then open the Amazon Receivable ledger and check that the balance is only genuinely pending items: unsettled orders, held reserves, or open disputes. Anything older that you cannot explain should be listed for follow-up.

If you want fees checked against agreed terms and returns tracked through to recovery cases, MarketplaceMetrics by Fundle does this. Myntra Excel reports are reviewed today, and other marketplaces such as Amazon are in scope discussion.

Common posting mistakes to avoid

• Posting only the bank credit as income, which understates sales and hides fees.
• Merging fees and GST into one expense, losing input credit.
• Ignoring TCS and TDS until return filing, when matching is hardest.
• Posting returns on payout date instead of the return date, which misstates periods.
• Netting reimbursements or penalties into sales, rather than a separate ledger.