The Razorpay Reconciliation Headache
Here is a scenario every Indian business owner knows too well. You check your Razorpay dashboard — Rs 1,47,500 settled to your bank today. You open TallyPrime to record it. But wait — that settlement includes 23 individual payments, minus 2 refunds, minus Razorpay's commission, minus TDS. Good luck matching those in a spreadsheet.
This is not a small problem. Razorpay processes over 5 billion transactions a year, and every one of those transactions needs to end up in someone's accounting software. For businesses using TallyPrime, that "someone" is usually a staff member spending 2-3 hours per day on manual reconciliation.
The ERPPlugs TallyPrime-Razorpay connector eliminates this entirely. It pulls every payment, refund, and settlement from Razorpay and creates the matching entries in TallyPrime — including GST on commission and TDS deductions.
What Automatic Reconciliation Looks Like
Once the ERPPlugs connector is set up, here is what happens behind the scenes every time Razorpay settles money to your bank:
Individual payment matching: Each Razorpay payment is linked to the corresponding sales invoice in TallyPrime. If the invoice was already created (from a Shopify order, for example), the receipt is matched to it automatically.
Commission tracking: Razorpay's fee (typically 2% + GST) is recorded as a separate expense entry in TallyPrime, mapped to your payment gateway charges ledger.
TDS handling: The TDS deducted by Razorpay (Section 194O for ecommerce, if applicable) is recorded in your TDS receivable ledger with the correct deductee details.
Refund reversal: When you issue a refund through Razorpay, ERPPlugs creates a credit note or journal entry in TallyPrime, reversing the original sale cleanly.
Settlement reconciliation: The net settlement amount is matched against your bank statement entry, making bank reconciliation in TallyPrime nearly one-click.
Setting It Up in ERPPlugs
The setup takes about 5 minutes and does not require any coding or API knowledge.
First, install the ERPPlugs bridge app on the machine running TallyPrime (if you have not already). Then, in the ERPPlugs dashboard, add the Razorpay connector and authenticate using your Razorpay API key and secret — these are available in your Razorpay dashboard under Settings > API Keys.
Next, map your TallyPrime ledgers. The wizard will ask you to specify which ledgers to use for payment gateway charges, TDS receivable, and the bank account where Razorpay settles. If you already have these ledgers in Tally, it takes 30 seconds.
Finally, choose your sync frequency. Most businesses pick real-time or hourly sync. Hit "Activate," and the connector starts pulling data from the last 24 hours as a test batch.
Real Impact: Time and Accuracy
We see businesses reclaim 10-15 hours per month just from automating Razorpay reconciliation. That is time previously spent downloading CSV reports, cross-referencing settlement IDs, and fixing mismatches.
But the accuracy improvement might matter even more. Manual reconciliation errors compound — a missed refund here, a duplicated entry there. Come GST filing time, these discrepancies cause delays and sometimes penalties. The ERPPlugs connector matches every transaction to the penny, so your ITC claims are always accurate and your returns file smoothly.
One CA we spoke to put it simply: "I used to spend three days at quarter-end reconciling Razorpay for my ecommerce clients. Now it is done before I even get there."