For any e-commerce business, it's crucial to track payments received and expenses incurred. The best practice is to cross-check these financial transactions against each order—a process known as payment reconciliation. This involves monitoring expenses and payments for each order to ensure accurate bookkeeping.
In this article, you will learn:
Payment received in the bank doesn't match the sales: This discrepancy often occurs because marketplaces deduct their fees before transferring payments to you.
Multiple fees are charged for an order: Marketplaces impose various charges such as commission, closing, payment collection, and shipping fees. These fees may vary for each order.
Payments aren't received chronologically: Marketplaces sometimes release payments for older orders long after settling newer ones.
Tracking refunds is challenging: When a customer returns a product, and it's picked up, they receive a refund. This amount is deducted from your next settlement, even if you haven't received the returned package yet.
Payment formats vary across marketplaces: Each marketplace provides payment reports in different formats. Converting these into a unified format for reconciliation requires manual effort and increases the risk of errors.
Exceptional scenarios complicate matters: Exchanges, replacements, cancellations, discounts, and marketplace-funded promotions further complicate the reconciliation process.
You can upload the report received from the marketplaces without making any changes to the file format or data. This saves you considerable time and effort while reducing the risk of errors.
Eshopbox streamlines the payment reconciliation process by automating tasks that match payments with sales and generates comprehensive report summaries and detailed breakdowns in a standardized format across all marketplaces.
Additionally, we proactively notify you about orders that might require your attention.
The below workflow will help you understand how marketplace payment reconciliation works:
Step 1: Enabling payment reconciliation on your workspace
You can enable payment reconciliation for the sales channels by navigating to the Apps detail page > Reconcile Payments Automation.
Once done, you need to configure the number of days after which a payment is considered overdue. This is used to alert you if a payment is overdue for a fulfilled order or if a return delivery is overdue for a refunded order.
Learn here how to enable payment reconciliation for
Flipkart
Myntra
Amazon
Tata Cliq
Nykaa
Step 2: Booking payments
Whenever you receive a deposit from a platform in your bank account, you need to create a payment in Eshopbox. While creating payment, you need to upload the payment reports provided by the platform. Learn here how to book payments for
Flipkart
Myntra
Amazon
Tata Cliq
Nykaa
If the amounts match, Eshopbox will start the reconciliation. If not, an error message will appear, and you need to resolve the same.
Note:
The report from the marketplace can be imported directly into your Eshopbox workspace without altering the file format or data. This streamlines the process, reducing the risk of manual errors and saving time in report interpretation.
If you do not upload a payment report from the marketplace, Eshopbox will mark it as overdue once the due date for that payment crosses.
Step 3: Reconciling payments
Eshopbox categorizes payments after matching the expected payment (invoiced amount) with the actual payment received from the marketplace.
Eshopbox assigns one of the following payment statuses:
Paid: If the payment received equals or exceeds the provisional amount.
Awaiting payment: If no payment is received for an order.
Awaiting payment with a "Partial payment" tag: If the payment received is less than the provisional amount.
Refunded: If the refund is deducted from an order or if an order is returned and no payment is received for it.
Void: If the orders are cancelled or voided.
You can also view payments that require your attention and take the necessary action on them. Eshopbox highlights them as
Overdue: Payments not received within the configured overdue period.
Suspense: New fees deducted by the marketplace are not yet set up in the system.
Return Overdue: Returns not processed within the configured timeframe after a refund deduction.
Negative Settlement: When the total amount paid is negative, indicating an issue with the reconciliation.
Learn here how to handle payment reconciliation exceptions for
Flipkart
Myntra
Amazon
Tata Cliq
Nykaa
You can keep track of the fees charged on a specific order and any deductions made, as well as view a detailed breakdown of the same. Learn here how to filter and track order settlements.
You can also export all this data in a unified, single, simple format for all sales channels and easily import it into your system. Learn here how to export the order settlements report.
Q1. Why can't Eshopbox fetch payment reports automatically from sales channels?
We aim to ensure complete reconciliation by including bank receipts. If Eshopbox fetches the payment report from the marketplace automatically, there is a possibility that you might miss a payment that was created on the marketplace but wasn't deposited in your bank account. Hence, we have not enabled automatic payment fetching from the marketplaces.
Q2. What should I do if the payment report doesn’t match the fund transfer amount?
You need to re-verify the exact amount from your bank statement. If the issue still persists, raise a ticket with the marketplace.