Amazon Seller Accounting: How to Manage Sales, Fees, GST & Settlements

Selling on Amazon is easy. But managing the accounting behind every order can get complicated.

As an Amazon seller, your books don't only contain sales. You also need to account for:

• Amazon commission

• Shipping charges

• Platform fees

• Return charges

• Gift wrap amounts

• TCS

• GST-related transactions

• Amazon settlements

• Bank credits

And when you have hundreds of orders, entering and checking all these transactions manually can take a lot of time.

That's where Amazon seller accounting becomes important.

Why A mazon Sellers Need Proper Accounting

Suppose your Amazon dashboard shows a certain amount of sales, but the amount credited to your bank is lower.

This doesn't necessarily mean that money is missing.

Amazon may have deducted different charges before making the settlement.

The challenge is knowing:

How much was sold?
How much commission was charged?
How much was deducted for shipping and other fees?
How much TCS was deducted?
How much was finally settled to the bank?

Without proper settlement accounting, these numbers can be difficult to track.

One Simple Example

Let's say Rahul sells products on Amazon.

During a settlement period, Rahul has ₹1,00,000 in Amazon sales.

After different charges and adjustments, his settlement looks like this:

So Rahul's books shouldn't simply show:

Amazon Sales = ₹1,00,000

and

Bank Credit = ₹79,500

He also needs to account for the different charges and adjustments that created the difference.

This is what makes Amazon settlement accounting important.

What Is Amazon Settlement Accounting?

Amazon settlement accounting means recording the complete transaction behind the amount Amazon pays you.

Instead of looking only at the final bank credit, you can track:

Sales → Commission → Shipping → Platform Fees → Returns → TCS → Other Adjustments → Final Settlement

This gives you a clearer picture of your Amazon business.

It also makes it easier to reconcile the settlement with your accounting records and bank statement.

The Problem With Manual Amazon Accounting

For a business with a few orders, manually checking a settlement report may seem manageable.

But imagine handling:

500 orders → 1,000 orders → 5,000 orders

Now checking every order and manually entering:

• Sales

• Commission

• Shipping

• Platform fees

• Returns

• TCS

• Gift wrap

• Settlement

can become repetitive and time consuming.

There is also a greater chance of missing an entry or misunderstanding a deduction.

How HisabKitab’s Amazon Settlement Feature Helps

With HisabKitab, Amazon sellers can manage settlement details, track charges and keep their accounting records organised without manually entering every transaction.

hisabkitab simplifies this process by allowing Amazon sellers to bring their settlement data directly into their accounting workflow.

Upload Settlement

Simply upload your Amazon settlement report.

All Sales & Settlement Entered

The sales and settlement information from the report can be entered into the accounting system, reducing repetitive manual entry.

Entries Posted Automatically

Instead of manually creating entries for every transaction, the relevant entries are posted automatically.

Commission Per Order

Track Amazon commission per order, making it easier to understand the cost associated with individual sales.

Track All Major Settlement Components

hisabkitab's Amazon Settlement feature helps account for:

✓ Commission Fees
✓ Shipping Charges
✓ Platform Fees
✓ Return Charges
✓ Gift Wrap Amount
✓ TCS
✓ Sales & Settlement

So, instead of spending hours breaking down settlement reports manually, the accounting process becomes much more organized.

Why Settlement Reconciliation Matters

Your Amazon sales and your bank credit are two different numbers.

That's normal because Amazon may deduct applicable charges before making the payment.

Settlement reconciliation helps you connect these numbers.

You can understand:

• What you sold

• What Amazon deducted

• What adjustments were made

• What amount was settled

• What amount reached the bank

This gives you better visibility into your actual Amazon transactions.

Amazon Sales ≠ Amazon Settlement ≠ Profit

These three figures should not be treated as the same.

Amazon Sales

The value of products sold through Amazon.

Amazon Settlement

The amount settled by Amazon after applicable deductions and adjustments.

Profit

The amount remaining after considering the relevant costs and expenses of your business.

Understanding this difference is important for accurate business reporting.

GST and TCS in Amazon Accounting

Amazon sellers also need to consider GST and TCS while maintaining their accounts.

TCS appearing in the settlement report is a deduction that needs to be appropriately accounted for.

Similarly, GST-related sales and tax transactions need to be recorded correctly according to the applicable tax treatment.

For businesses handling large volumes of Amazon transactions, keeping these records organized becomes especially important.

Note: GST and TCS treatment can depend on the nature of the transaction and applicable tax rules. Sellers should confirm their specific tax treatment with their CA or tax professional.

How hisabkitab Makes Amazon Accounting Easier

With hisabkitab, Amazon sellers can simplify the settlement accounting process:

Upload Settlement
↓
Sales & Settlement Data Entered
↓
Commission Per Order Accounted
↓
Fees & Adjustments Recorded
↓
Entries Posted Automatically

This reduces repetitive manual accounting work and gives sellers better visibility into their Amazon transactions.

Who Can Use It?

The feature can be useful for:

• Amazon sellers

• E-commerce businesses

• Businesses with high order volumes

• Accountants managing Amazon seller accounts

• Sellers operating across multiple marketplaces

The more orders you handle, the more useful organized settlement accounting becomes.

Manage Amazon Sales & Settlements With hisabkitab

Amazon accounting isn't just about knowing how much you sold.

You also need to know:

What Amazon deducted.
Why it was deducted.
What was settled.
And what reached your bank.

hisabkitab's Amazon Settlement feature helps bring these details into your accounting process through settlement upload, automatic entry posting and commission-per-order tracking.

Sell more. Track better. Account smarter.

Book your FREE Demo now.