How to Do Amazon & Flipkart Accounting in Tally Prime (GST, TCS, Commission & Returns Explained)

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Selling on online marketplaces like Amazon and Flipkart has become a major business channel for traders, manufacturers, and brand owners in India. While these platforms simplify sales and logistics, they also introduce complex accounting challenges, especially related to settlements, commissions, GST, TCS, returns, and payment reconciliation.

A common question among online sellers and accountants is:

“Does TallyPrime support Amazon and Flipkart accounting?”

The answer is yes—TallyPrime fully supports Amazon and Flipkart accounting when configured and used correctly.

This detailed guide explains how TallyPrime supports marketplace accounting, what kind of entries are required, how settlements are handled, and why TallyPrime is preferred by CA firms and e-commerce sellers.

Understanding Amazon & Flipkart Accounting Complexity

Unlike traditional offline sales, marketplace accounting involves multiple layers:

• Sales invoice generated to customer
• Commission and platform fees
• Shipping and logistics charges
• GST on commission
• TCS (Tax Collected at Source)
• Returns and refunds
• Settlement payments (net amount received)

Marketplaces do not pay the full invoice value. Instead, they deduct charges and release a net settlement amount, which must be correctly accounted for.

Does TallyPrime Support Marketplace Accounting?

Yes. TallyPrime fully supports Amazon and Flipkart accounting, including:

• Sales recording
• GST compliance
• TCS accounting
• Commission & expense booking
• Settlement reconciliation
• Returns and credit notes

However, TallyPrime does not auto-connect directly with Amazon or Flipkart portals. Instead, it supports structured import and manual posting, which is the preferred and audit-safe method.

How Amazon & Flipkart Transactions Are Recorded in TallyPrime

1. Recording Sales in TallyPrime

Sales are recorded in TallyPrime based on customer invoices generated through the marketplace.

Options include:

• Day-wise consolidated sales
• Order-wise sales entry
• Invoice-wise import via Excel/XML

Each sale entry includes:

• Customer name (or marketplace customer ledger)
• Taxable value
• GST breakup (CGST/SGST or IGST)

TallyPrime supports all GST classifications required for marketplace sales.

2. Handling GST in Marketplace Sales

TallyPrime handles:

• Intra-state and inter-state GST
• Correct tax rate mapping
• HSN/SAC classification
• GST returns (GSTR-1, GSTR-3B)

Even though Amazon or Flipkart collects payment, GST liability remains with the seller, and TallyPrime ensures proper reporting.

3. Amazon & Flipkart Commission Accounting

Marketplaces charge:

• Selling commission
• Closing fees
• Shipping fees
• Technology or service fees

In TallyPrime:

• Commission is booked as an expense
• GST on commission is recorded as input tax
• Separate ledgers can be created for:
  • Amazon commission
  • Flipkart commission

This ensures accurate profit calculation.

4. Settlement Accounting in TallyPrime

This is the most critical part of marketplace accounting.

How settlements work:

• Gross sales value
• Minus commission & charges
• Minus TCS
• Minus refunds (if any)
• Net amount credited to bank

In TallyPrime:

• A settlement ledger is used
• The marketplace acts as an intermediary
• Net payment is adjusted against receivable

This method ensures:

• No mismatch between bank and sales
• Clear reconciliation trail

5. TCS (Tax Collected at Source) Accounting

Marketplaces collect TCS under GST on behalf of the government.

TallyPrime supports:

• Separate TCS ledger
• Tracking TCS receivable
• Adjustment while filing GST returns

TCS collected is not an expense but a recoverable amount, and TallyPrime handles this correctly.

6. Returns, Refunds & Credit Notes

E-commerce businesses experience frequent returns.

TallyPrime supports:

• Sales return vouchers
• Credit notes with GST impact
• Adjustment against future settlements

This ensures:

• Correct revenue reversal
• Accurate GST adjustment
• Clean reconciliation

7. Bank Reconciliation for Marketplace Settlements

Since payments are not invoice-wise, reconciliation is critical.

TallyPrime allows:

• Bank statement import
• Settlement-wise matching
• Identification of timing differences

This makes reconciliation manageable even with high volumes.

8. Importing Amazon & Flipkart Reports into TallyPrime

Most sellers use:

• Order reports
• Settlement reports
• Fee reports

These reports can be:

• Imported via Excel
• Converted to XML
• Posted voucher-wise

TallyPrime supports structured imports, which reduces manual work significantly.

9. Profitability Analysis in TallyPrime

With proper setup, TallyPrime allows sellers to analyze:

• Marketplace-wise profit
• Commission impact
• Net margin after fees
• Return-related losses

This insight is crucial for pricing and decision-making.

10. Why CA Firms Prefer TallyPrime for Marketplace Accounting

CA firms prefer TallyPrime because:

• It is audit-ready
• GST reporting is accurate
• Settlement logic is transparent
• Data is easily explainable during scrutiny

Marketplace accounting requires clarity, and TallyPrime provides it.

Common Mistakes Sellers Make Without Proper TallyPrime Setup

• Recording only net settlement as sales
• Ignoring commission GST
• Misclassifying TCS
• Skipping sales returns
• Poor reconciliation

These mistakes lead to:

• Incorrect GST returns
• Inflated profits
• Tax notices

TallyPrime helps avoid these issues.

Best Practices for Amazon & Flipkart Accounting in TallyPrime

• Maintain separate ledgers for each marketplace
• Record gross sales, not net receipts
• Book commission and GST correctly
• Reconcile settlements monthly
• Keep supporting reports archived

Who Should Use TallyPrime for Marketplace Accounting?

TallyPrime is ideal for:

• Amazon sellers
• Flipkart sellers
• D2C brands
• Traders and manufacturers
• CA firms managing e-commerce clients

Whether small or large, TallyPrime scales well.

Conclusion

So, does TallyPrime support Amazon and Flipkart accounting?
Yes—comprehensively and reliably.

While marketplaces simplify selling, they complicate accounting. TallyPrime bridges this gap by offering a structured, compliant, and audit-ready accounting system that handles all aspects of marketplace transactions.

For sellers who want accurate GST, clean settlements, and clear profitability, TallyPrime remains one of the most trusted accounting solutions in India.

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