The Amazon India Accounting Problem
Selling on Amazon India is straightforward until you try to do the accounting. Amazon does not simply pass money to you — it deducts referral fees, closing fees, shipping charges, GST on commission, and TCS (Tax Collected at Source) before settling the balance to your bank account.
For a seller processing 50-100 orders per day, recreating each sale in TallyPrime means opening the Amazon Seller Central report, understanding the fee breakdown for each order, creating the sales voucher, recording the commission as an expense, and tracking TCS as a receivable. Multiply that across hundreds of orders, and you are looking at a full-time job just for data entry.
The ERPPlugs TallyPrime-Amazon India connector does all of this automatically. Every order, fee, and settlement flows into TallyPrime in the right format, to the right ledgers, with the correct GST treatment.
What Gets Synced Automatically
Here is a breakdown of how the connector handles each component of an Amazon India transaction:
Sales vouchers: Each Amazon order creates a sales voucher in TallyPrime with the product, quantity, price, and customer state (for inter-state vs. intra-state GST calculation).
Referral fees and commission: Amazon's marketplace fees are recorded as expenses under your designated ledger, with GST on commission tracked separately for ITC claims.
TCS (Tax Collected at Source): Amazon collects TCS under Section 206C(1H). ERPPlugs records this in your TCS receivable ledger so you can claim credit during income tax filing.
Returns and refunds: When a customer returns a product, ERPPlugs creates a credit note in TallyPrime matching the original sale, including any fee reversals from Amazon.
Settlement matching: The net settlement amount from Amazon is matched to your bank entry, accounting for all the deductions so bank reconciliation takes seconds.
Setting Up the Connector
The setup follows the standard ERPPlugs pattern — install the bridge app, connect your Amazon Seller Central account via SP-API credentials, map your TallyPrime ledgers, and activate.
The key step is ledger mapping. You will need to tell ERPPlugs which TallyPrime ledgers to use for Amazon commission charges, TCS receivable, and the bank account for settlements. If you do not have these ledgers yet, the wizard includes a "create ledger" option that builds them in TallyPrime for you.
Most sellers are up and running in under 10 minutes. The connector pulls the last 7 days of orders as an initial sync so you can verify everything looks right before letting it run continuously.
Why This Matters at Scale
Manual Amazon accounting is not just slow — it is error-prone in ways that cost real money. The most common mistake we see is sellers incorrectly recording the gross sale amount as revenue instead of the net amount (after Amazon fees). This inflates revenue on paper and leads to incorrect GST payments.
Another frequent issue is missed TCS credits. Amazon deducts TCS on every transaction, and sellers are entitled to claim that as a credit against income tax. But if TCS is not tracked systematically in Tally, those credits go unclaimed — sometimes amounting to lakhs over a financial year.
The ERPPlugs connector handles these nuances from day one. Your books are accurate, your GST returns match Amazon's reporting, and your TCS credits are captured automatically.