Flipkart Settlement Report Explained for Sellers
The Flipkart settlement report is the single most important file for a seller's accounts, and also the most misread. Sellers routinely book the bank credit as sales, ignore the fee columns, and then wonder why turnover in Tally does not match Seller Hub. This article goes through the report column by column and shows what each figure should become in your books.
What the report actually is
The settlement report is order-item-level: one row per order item that was settled, not one row per payout. A single NEFT transfer to your bank is the sum of many rows. Each row carries the NEFT ID and NEFT date identifying the bank payment it was bundled into, which is what lets you tie your books to your bank statement later. If you take one thing from this article: never treat the NEFT credit in your bank as revenue. It is a net figure after fees, tax collections and deductions.
Sale Amount vs Settlement Value
Two columns anchor every row. Sale Amount is the gross value of the order item, the customer-facing invoice value. Settlement Value is what Flipkart actually pays you for that item, net of all marketplace fees and tax deductions. The gap between the two is your true cost of selling on Flipkart, and it belongs in your profit and loss account as itemised expenses, not netted invisibly against sales.
The fee columns, one by one
| Column | What it is | Typical Tally treatment |
|---|---|---|
| Commission | Flipkart's percentage fee on the item, varies by category | Indirect expense ledger |
| Collection Fee | Payment collection charge on the order value | Indirect expense ledger |
| Fixed Fee | Flat per-item fee based on price band | Indirect expense ledger |
| Shipping Fee | Forward logistics charge | Indirect expense ledger |
| Reverse Shipping Fee | Logistics charge on customer returns | Indirect expense ledger |
| GST on Fees | GST charged by Flipkart on the above fees | Input tax credit ledger (confirm eligibility with your CA) |
Keeping these as separate ledgers instead of one lump-sum "Flipkart charges" account pays off quickly: you can see when reverse shipping spikes because of a return-heavy SKU, or when a category commission change hits your margin.
TCS and TDS columns
The report also shows tax deducted at the source of settlement. TCS is GST tax collected at source under Section 52, at 0.5% of net taxable supplies, which appears in your GSTR-2X/cash ledger flow for credit. TDS is income-tax deduction under Section 194-O at 0.1% of gross sales. Both are your money, recoverable or adjustable, so they should sit in asset ledgers, not expense ledgers. The mechanics of claiming them are covered in our guide to Flipkart TCS and TDS treatment in Tally, and the exact claiming process should be confirmed with your CA.
Turning rows into balanced vouchers
For each settlement period, the accounting shape is consistent. Sales vouchers come from the sales/GST report; the settlement report then explains how each receivable was actually recovered: part in cash via NEFT, part consumed by fees, part parked as TCS and TDS credits. A balanced entry set for one NEFT payout debits bank for the settlement total, debits each fee expense and the GST-on-fees input ledger, debits TCS and TDS receivable, and credits the Flipkart party ledger for the gross amount, leaving the party ledger clean when everything reconciles.
Doing this by hand at order-item granularity is the hard part. TallySutra's Flipkart-to-Tally import reads the settlement report you upload, exactly as downloaded from Seller Hub, and generates those balanced vouchers automatically, with a settlement reconciliation view that ties every NEFT ID back to its rows. Rows that do not add up, for example when fees exceed expectations or an order item appears twice, are held in an exception queue for review rather than imported blind. It works purely on uploaded files; there is no API link to your seller account. You can see the full workflow, including exception handling and CA approval, before deciding how much of your month-end you want to automate, and pricing scales with voucher volume rather than a flat enterprise fee.
Read the settlement report correctly and everything downstream, bank reconciliation, GST workings, margin analysis, gets dramatically easier. Misread it, and no amount of downstream effort fixes the numbers.
Frequently asked questions
Why does my bank credit not match my sales for the month?
Because the NEFT credit is the Settlement Value total, which is net of commission, collection fee, fixed fee, shipping fees, GST on fees, TCS and TDS. Your sales figure should come from the gross Sale Amount and the sales/GST report. The difference between the two is made up of itemised fees and recoverable tax credits, each of which needs its own ledger entry.
Is one settlement report row equal to one bank payment?
No. The report is order-item-level, so one row represents one order item. Many rows share the same NEFT ID and NEFT date, and together they sum to one bank credit. To reconcile, group rows by NEFT ID, total the Settlement Value column, and match that total against the corresponding credit entry on your bank statement.
Should GST on Fees be treated as an expense?
Generally no. GST charged by Flipkart on its fees is typically eligible as input tax credit for a registered seller, so it belongs in an input GST ledger rather than an expense ledger. Eligibility depends on your registration status and circumstances, so confirm the treatment with your CA before finalising your chart of accounts.
TallySutra turns Amazon, Flipkart and Meesho reports into reconciled, reviewed TallyPrime vouchers — duplicate-safe, with every rupee traceable to its source row.
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