E-commerce Bank Reconciliation in Tally Prime: Amazon & Flipkart

Sellers on Amazon and Flipkart often discover that their bank deposits never match their gross sales figures. This is because marketplaces deduct commissions, logistics fees, returns, and statutory taxes (GST TCS, Income Tax TDS) before releasing funds.

Without a proper reconciliation workflow in Tally Prime, clearing accounts accumulate unmatched balances, causing financial statement inaccuracies. This guide provides a step-by-step process to achieve zero-balance reconciliation.

1. The Money Flow: Gross to Net

Understanding the deduction structure is the first step:

2. Setting Up Clearing Accounts in Tally

Create separate clearing accounts for each marketplace:

• "Amazon Settlement Clearing" — under Current Assets.
• "Flipkart Settlement Clearing" — under Current Assets.
• "Amazon Fees & Commission" — under Indirect Expenses (GST applicable).
• "Flipkart Fees & Commission" — under Indirect Expenses (GST applicable).
• "GST TCS Receivable" — under Current Assets.
• "TDS Receivable u/s 194-O" — under Current Assets.

3. Monthly Reconciliation Process

Step 1: Book Gross Sales

Record sales invoices debiting the respective clearing account (e.g., Amazon Settlement Clearing) for the full invoice value including GST.

Step 2: Process Returns

Record Credit Notes for customer returns, crediting the clearing account for the returned amount.

Step 3: Allocate Platform Deductions

Record a Journal Voucher for the settlement period's deductions:

Step 4: Book Bank Receipt

When the net deposit appears in your bank: Debit Bank, Credit Clearing Account. The clearing account should now balance to zero.