Flipkart Payment Reconciliation

Introduction

If you’re a Flipkart seller, keeping track of payments, reconciling statements, and calculating profits can be a daunting task. Whether you are selling on Flipkart, Meesho, or Amazon, understanding payment reconciliation is crucial to maintaining profitability and streamlining your business.

Our platform provides Cloud Based Flipkart Payment Reconciliation Software to help you efficiently manage your finances, identify discrepancies, and make informed business decisions. These reports are essential for gaining insights into your business's financial health.

Why Payment Reconciliation Matters for Flipkart Sellers

Payment reconciliation ensures that the payments you've received from Flipkart accurately reflect your sales records. Flipkart deducts various charges, such as commission and shipping fees, from the payments they send to you. Without proper reconciliation, you may overlook discrepancies or fail to account for all expenses, affecting your profitability.

Key Features of Our Flipkart Payment Reconciliation Reports

1. Sales Excluding GST

This represents your net sales amount after deducting GST and any returns. Monitoring this figure helps you get a clearer picture of your true revenue.

2. Commission Fees

Flipkart deducts commission fees directly from your payments. These fees from product to product, marketplace to marketplace and is different for Branded Products and Generic Products. It includes Listing Fees, Commission and other similar expenses.

3. Shipping Charges

Our reports include the shipping charges deducted by Flipkart for delivering your products to customers and handling reverse logistics. Accurate tracking of these charges is crucial to avoid profit leaks.

4. Non-Refundable GST

• Sellers incur Output GST on sales transactions.
• On expenses such as commission, shipping, and other costs, Input GST credit is accumulated in the seller's account.
• When Output GST (from sales) is higher than Input GST (from expenses), the seller must pay the difference as GST.
• When Input GST exceeds Output GST, the excess amount is accumulated in the seller's GST dashboard. However, this Input GST is Non-Refundable.
• Non-refundable Input GST should be treated as an expense when calculating actual profits, as it affects the seller's overall earnings.

5. Cost of Goods Sold

• The cost of goods sold is to be calculated by multiplying the quantity of product sold with their respective cost.
• If the GST rate on the products is 3%, 5%, or 12%, include the GST paid on purchases in the cost of the products.
• If the GST rate is 18% or higher, exclude the GST amount from the cost of the products.
• This approach helps to account for the non-refundable GST as discussed earlier, ensuring accurate profit calculations.

6. Funds Flow Analysis

After the calculation of gross profit. The analysis of funds flow is important to know the actual allocation and management of funds

Funds flow should be considered to keep proper control over the funds.

7. GST Payable

The GST payable is determined by:

• Output GST :The GST collected on your sales.
• Input GST : The GST paid on your expenses and purchases.
• TCS Deducted : TCS deducted by marketplaces on Sales
• Make sure to set aside the GST payable amount to avoid business disruptions. Failure to pay GST on time can affect your business.
• Additionally, if the GST rate on your products is 18% or higher, you can adjust your GST payable by considering input credits on your purchases.

8. GST Refundable

This represents the amount that remains unutilized after payment of GST and is accumulated in GST cash ledger balance of the seller. This amount claimed as refund by applying on GST portal.

9. Claims

This amount represents the claims accepted and disbursed by Marketplaces. If this amount is negative then it means recovery is done by the Marketplaces.

10. Average Payment Cycle

It represents number of average days after with payment is settled by marketplaces after the Order Date. Normally, the Average Payment Cycle for sellers is 15 Days.

Quantity Analysis

Quantity analysis is critical to understand the performance of business.

11. Sales Quantity

It represents number of average days after with payment is settled by marketplaces after the Order Date. Normally, the Average Payment Cycle for sellers is 15 Days.

12. Customer Return Quantity

• This is the number of units returned by customers.
• A return rate lower than 10% is a sign of good product quality and performance.
• A return rate higher than 20% suggests that the seller should review product pricing or improve product quality.

13. RTO Return Quantity / Courier Return Quantity

No seller has control over this figure, as it represents units that never reached the customers due to issues with courier partners. While most marketplaces do not charge logistics fees for courier returns, a few do.

14. Net Sales Quantity

It represents the Net of Sales Quantity Less Customer Returns Quantity and RTO Returns/Courier Returns Quantity and is the actual sales units by the business.

15. Neft wise payment summary

This lists out the Datewise Payment Summary of Payment Received by the Seller . The accuracy of the report can be determined by Reconciling this table with the Bank Statement.

A Few expenses specific to Flipkart Payment Reconciliation.

16. MP Fees Rebate

This amount represents the amount of reimbursement of Commission and Logistics charges by Flipkart for the promotions opted-in by the sellers. Generally, it is for the sales done in previous months.

17. Offer Ads

It is reimbursement of Flipkart’s share of expense in Advertisement by the Seller. This is a part of various promotion campaigns run by Flipkart.

18. Storage Costs

This expense is deducted only for the sellers who opt for Flipkart Warehousing Facilities.

19. Non-Order SPF

It represents the amount of claim issued by Flipkart against which Flipkart has not provided any order-id.

20. Protection Fund

It represents the claims issued by Flipkart towards order-id from the Seller Protection Fund managed by Flipkart.

How Our Software Simplifies Flipkart Payment Reconciliation

Our Flipkart Payment Reconciliation Software is designed to provide a user-friendly and highly accurate experience for sellers. Here's how it helps:

• Easy to Use: Unlike other complex solutions in the market, our software is straightforward and intuitive, making it accessible for all sellers, regardless of technical expertise. You can start reconciling payments without needing extensive training.
• Accurate: The reports generated by our software are highly accurate and can be cross-checked with your bank statements to ensure that every payment is accounted for. This level of precision gives you peace of mind and confidence in your financial data.
• Comprehensive Reports: Generate detailed reports that clearly outline your sales, commissions, shipping charges, and GST. Our reports also include funds flow analysis to help you track how money moves through your business.
• Profit Calculation: By factoring in all costs, including non-refundable GST and commission fees, our software gives you precise profit calculations. This allows you to make better pricing and marketing decisions.

Tips for Effective Payment Reconciliation on Flipkart

To maximize the benefits of our reconciliation process, follow these best practices:

• Regular Reconciliation: Don’t wait until the end of the month to reconcile payments. Regularly checking your sales and payment data will help you quickly identify any discrepancies.
• Cross-Check with Bank Statements: Always reconcile your NEFT-wise payment summary with your bank statements to ensure that all payments are correctly received.
• Monitor Quantity Analysis: Keep track of sales, customer returns, and courier returns to assess your business's performance. For instance, a high customer return ratio could indicate pricing or product quality issues that need to be addressed.

Conclusion

Flipkart payment reconciliation doesn’t have to be complex. With our platform's comprehensive reports and automation, you can streamline the process and focus on growing your business. Our Flipkart Payment Reconciliation Software not only helps you manage payments but also provides insightful reports to improve profitability.

Ready to simplify your Flipkart payment reconciliation process?