What is an Amazon Settlement Report?

An Amazon Settlement Report is a statement issued by Amazon Seller Central that breaks down gross sales, customer returns, marketplace fees (referral, storage, logistics), and tax deductions (TCS, TDS) for a specific payout period.

Why does the Amazon deposit amount not match my sales invoices?

Amazon deposits a net amount after deducting commissions, storage fees, easy ship charges, customer returns, TCS, and TDS. You must record these deductions in a journal entry to reconcile the bank deposit.

How do I account for Amazon TCS and TDS in Tally?

Create current asset ledgers named 'GST TCS Receivable' and 'TDS Receivable u/s 194-O' to record these tax deductions. You can claim these as credits against your final tax liabilities.

Amazon Settlement to Tally Prime: Payout Entry Guide (2026)

Last Updated: July 15, 2026 | Reviewed by Chartered Accountant

Selling products on Amazon India involves high transaction volumes and complex payout structures. When Amazon transfers funds to your bank account, the deposit amount represents a net payout after deducting commissions, shipping fees, storage charges, and statutory taxes.

This guide details how to read the Amazon Settlement Report and record the entries in Tally Prime. Let's look at the configuration and booking steps.

1. Reading the Amazon Settlement Report

To reconcile payouts, log in to **Amazon Seller Central**, navigate to **Payments > Reports Repository**, and download the **Flat File V2** version of your latest settlement report. This file details:

Gross Sales & Customer Returns: The total value of orders placed and returns processed.
Marketplace Expenses: Amazon Referral Fees, FBA Storage Fees, and Easy Ship Logistics Charges.
Statutory Deductions: GST TCS (1% under Section 52) and Income Tax TDS (0.1% under Section 194-O).

2. Configuring Marketplace Ledgers in Tally Prime

Create these ledger accounts in Tally Prime to record the transactions:

Step 1: Setup Clearing and Expense Ledgers

"Amazon Settlement Clearing" under **Current Assets** (serves as a temporary clearing account).
"Amazon Fees & Commissions" under **Indirect Expenses** (with GST enabled to claim Input Tax Credit on Amazon's invoice).

Step 2: Setup Statutory Asset Ledgers

"GST TCS Receivable" under **Duties & Taxes** (or Current Assets).
"TDS Receivable u/s 194-O" under **Current Assets**.

3. Booking the Settlement Vouchers

reconciling the payout requires two steps:

Step 1: Book Gross Sales Invoices

Record your daily or weekly sales vouchers, debiting the **Amazon Settlement Clearing** account for the gross order value (including taxes).

Step 2: Book Fee Allocations and Tax Deductions

Record a **Journal Voucher (F7)** to map the deductions from the settlement report:

Debit: Amazon Fees & Commissions (Referral + Storage fees)
Debit: Input CGST / SGST / IGST (Tax on Amazon fees)
Debit: GST TCS Receivable (1% of gross sales value)
Debit: TDS Receivable u/s 194-O (0.1% of gross value)
Credit: Amazon Settlement Clearing (Clear the fees and taxes)

Step 3: Record Net Bank Payout

When the net deposit is cleared in your bank statement, record a **Receipt Voucher (F6)**:

Debit your **Bank Account** and Credit the **Amazon Settlement Clearing** account. This brings the clearing account balance to zero.

Authority References & Official Portals

Amazon Seller Central India Help