How to Convert Amazon MTR & Flipkart Settlement Reports to Tally Prime XML

The E-Commerce Accounting Nightmare in Tally Prime

Direct-to-consumer (D2C) brands and online sellers handling thousands of monthly orders across Amazon India and Flipkart face an overwhelming accounting bottleneck. A single month's Merchant Tax Report (MTR) or settlement sheet contains between 5,000 to 50,000 transaction rows with multiple deductions:

• Gross Customer Sales: State-wise B2C supplies with varying GST slabs (5%, 12%, 18%).
• TCS under Section 52: 1% Tax Collected at Source deducted by marketplace operators.
• Marketplace Commission & Fulfillment Fees: Input GST (18%) on referral and shipping fees.
• Customer Returns & Reimbursements: Negative sales requiring credit note generation.

Manually compiling summary journals in Excel and keying them into Tally Prime takes finance teams between 3 to 5 days every month, resulting in frequent reconciliation discrepancies between GSTR-1, GSTR-3B, and bank credits.

Automating E-Commerce Ingestion via Native Tally XML

Instead of manual entry, EntryFlow consolidates complex Amazon MTR and Flipkart settlement files into consolidated day-wise or state-wise <TALLYMESSAGE> XML vouchers:

1. State-Wise Sales Allocation: Groups B2C transactions by Place of Supply (POS) to ensure precise IGST vs CGST/SGST routing.
2. Automated TCS Ledger Posting: Allocates TCS deductions to current asset ledgers (TCS on GST Receivable) for straightforward annual reconciliation.
3. Marketplace Fee Splitting: Automatically routes commission fees to indirect expense ledgers and extracts input tax credit for Amazon/Flipkart tax invoices.

How to Import E-Commerce XML into Tally Prime

1. Export your monthly Merchant Tax Report (MTR) or Settlement Report CSV from Amazon Seller Central or Flipkart Seller Hub.
2. Upload the file into EntryFlow's E-Commerce Settlement Converter at /tools/ecommerce-settlement-to-tally.
3. Download the generated ecommerce_sales_tally.xml file.
4. In Tally Prime, navigate to Alt + O → Import → Transactions and select the XML file.
5. All sales vouchers, debit notes, and TCS ledger allocations are posted instantly across all relevant state ledgers.