TallyPrime DAF6JKBZKwY Amazon Accounting Handbook User Guide

TallyPrime DAF6JKBZKwY Amazon Accounting Handbook

Product Information

Specifications

• Product Name: Amazon Accounting Using Tally
• Brand: THEGSTCO
• Compatibility: TallyPrime accounting software
• Features: Cloud-based version, remote access from any device

Introduction

• As an Amazon seller, maintaining accurate accounting records is crucial for effectively tracking business transactions, managing expenses, and ensuring compliance with tax regulations.
• Proper bookkeeping not only facilitates the tracking of sales, expenses, and profit/loss but also plays a pivotal role in meeting tax filing requirements.
• This comprehensive handbook is designed to provide valuable guidance to novice Amazon sellers on setting up fundamental accounting processes in TallyPrime, a widely used accounting software in India.
• TallyPrime’s cloud-based version offers the flexibility of remote access from any device, making it particularly advantageous for e-commerce sellers who require convenient access to their financial records.
• The information provided in this handbook is aimed at empowering Amazon sellers with the knowledge and tools necessary to establish sound accounting practices, thereby facilitating informed decision-making and regulatory compliance.

Installing TallyPrime

To install TallyPrime on your computer, you need to have administrator rights.

Moreover, your computer must meet the following technical requirements:

• Operating System: Windows, Mac, or Linux
• Processor: Minimum Intel Pentium 4 or equivalent
• RAM: Minimum 1 GB (Recommended 2 GB or more)
• Hard Disk: Minimum 150 MB of free space
• Internet Connection: Required for activation and updates

To download TallyPrime, follow these steps:

1. Visit the TallyPrime download page at https://tallysolutions.com/download/.
2. You will find two options to download: TallyPrime and TallyPrime Edit Log. Click on the TallyPrime download option.
3. TallyPrime Edit Log and TallyPrime are essentially the same, except that the Edit Log version has the edit log feature activated by default and cannot be disabled, whereas the regular TallyPrime version does not have this feature enabled by default.
4. Once you have downloaded TallyPrime onto your system, install it and activate it using the license key that you received after purchasing it.

Company Setup

• Maintaining your business transactions on a day-to-day basis is critical to your business.
• To keep a record of all your business transactions, you need to first create a company in TallyPrime.
• Through the company, you can also view and update all your transaction entries, as needed, and go through the financial reports based on the transactions that you maintain.
• The whole company creation process is divided into two parts: company creation and setting the company features.

Part one: Company Creation

1. On launching TallyPrime, click on the “Create Company” option.
2. Fill out the company details like company name, mailing name, address, state, country, etc.
3. Set up financial year details and security options.
4. Specify the base currency information. You can set up the base currency depending on the currency used in your business to record transactions.
5. Accept the setting. Once you move to the last field, you will be prompted to accept the setting. Click “Yes” to create the company or click on “No” to continue with editing. Once you accept the setting, your company will be created successfully.

FAQ

Q: What are the technical requirements for installing TallyPrime?

• A: To install TallyPrime, you need to have administrator rights on your computer.
• Additionally, your computer must meet the following specifications:
• Operating System: Windows, Mac, or Linux
• Processor: Minimum Intel Pentium 4 or equivalent
• RAM: Minimum 1 GB (Recommended 2 GB or more)
• Hard Disk: Minimum 150 MB of free space
• Internet Connection: Required for activation and updates

Q: How can I download TallyPrime?

• A: To download TallyPrime, visit the TallyPrime download page at https://tallysolutions.com/download/.
• Choose the appropriate version (TallyPrime or TallyPrime Edit Log) and follow the installation instructions.

Q: What is the difference between TallyPrime and TallyPrime Edit Log?

• A: TallyPrime and TallyPrime Edit Log are essentially the same accounting software.
• However, the TallyPrime Edit Log has the edit log feature activated by default and cannot be disabled, whereas the regular TallyPrime version does not have this feature enabled by default.

INTRODUCTION

• As an Amazon seller, maintaining accurate accounting records is crucial for effectively tracking business transactions, managing expenses, and ensuring compliance with tax regulations.
• Proper bookkeeping not only facilitates the tracking of sales, expenses, and profit/loss but also plays a pivotal role in meeting tax filing requirements.
• This comprehensive handbook is designed to provide valuable guidance to novice Amazon sellers on setting up fundamental accounting processes in TallyPrime, a widely used accounting software in India.
• TallyPrime’s cloud-based version offers the flexibility of remote access from any device, making it particularly advantageous for e-commerce sellers who require convenient access to their financial records.
• The information provided in this handbook is aimed at empowering Amazon sellers with the knowledge and tools necessary to establish sound accounting practices, thereby facilitating informed decision-making and regulatory compliance.

INSTALLING TALLYPRIME

• To install TallyPrime on your computer, you need to have administrator rights. Moreover, your computer must meet the following technical requirements:
• Operating system (OS) – Microsoft Windows 7 or above
• Bitness – 64-bit applications (for the OS and other applications such as MS Excel, Adobe Acrobat, and so on)
• Memory (RAM) – A minimum of 512 MB
• Storage – A minimum available space of 512 MB on your hard disk, cloud location, and so on

How to download TallyPrime?

• Visit the TallyPrime download page at https://tallysolutions.com/download/.
• You will find two options to download: TallyPrime and TallyPrime Edit Log. Click on the TallyPrime download option.
• TallyPrime Edit Log and TallyPrime are essentially the same, except that the Edit Log version has the edit log feature activated by default and cannot be disabled, whereas the regular TallyPrime version does not have this feature enabled by default.
• Once you have downloaded TallyPrime onto your system, install it and activate it using the license key that you received after purchasing it.

COMPANY SETUP

• Maintaining your business transactions on a day-to-day basis is critical to your business. To keep a record of all your business transactions, you need to first create a company in TallyPrime.
• Through the company, you can also view and update all your transaction entries, as needed, and go through the financial reports based on the transactions that you maintain.
• The whole company creation process is divided into two parts, company creation and setting up the company features
• Part one: Company Creation
• Step 1: On launching TallyPrime, click on the “Create Company” Option.
• Step 2 : Fill out the company details like company name, mailing name, address, state, country, etc.
• Setup 3 : Set up financial year details and security options
• Financial year beginning from TallyPrime pre-fills this field based on the date settings of your computer and the Country selected in the Company Creation screen.
• Books beginning from: By default, TallyPrime fills this field with the Financial year beginning from the date.
• You can update this, as needed. Say you started your business and have maintained all business transactions since 1-Oct-2023. You can update the Books beginning from the date to 1-Oct-2023, while the financial year will be 1-Apr-2023.
• Step 4: Specify the Base Currency Information
• You can set up the base currency depending on the currency used in your business to record transactions.
• To view all the options related to the base currency, press F12 (Configure) > set Provide Additional Base Currency details to Yes.
• Step 5: Accept the Setting
• Once you move to the last field, you will be prompted to accept the setting, click yes to create the company, or click on no to continue with editing
• Once you accept the setting, your company will be created successfully.
• Note: All the information you fill in here will be printed on all the invoices and reports. This can be the same as the company’s name.
• However, if you want a different name to be printed on your invoices and reports, you can specify a different mailing name.

Part two: Set up Company Features

• As you create a company in TallyPrime, you can set up the necessary features, either now or anytime later, based on your business needs.
• The basic minimum key features required for you to start recording your business transactions are enabled and displayed by default.
• Set show more features to “yes” to set additional features. As for the Amazon accounting, you have to set TDS and TCS to “yes”.

IMPORTING AMAZON SALES DATA

You can import the Amazon sales data using two methods

1. Download the Excel sheet manually from the Amazon seller account
2. Using third-party syncing tools like Evonik

• Importing data manually through Excel may lead to various challenges, such as creating numerous customer ledgers, setting off bulk payments, managing B2C and B2B sales separately, handling commissions and fees, matching sales and returns accurately, and recording TCS and TDS at the order level. This manual process can be time-consuming and error-prone.
• Therefore, it is recommended to use a reliable automated tool like eVanik OneWorld Suite for seamless integration of eCommerce marketplace transactions with TallyPrime.

Benefits of using Evonik

• Seamless Integration: eVanik provides one-click integration of eCommerce marketplace transactions with TallyPrime or Tally ERP9. This eliminates the need for manual downloading or uploading of Excel or CSV files from marketplace seller panels.
• Automated Syncing: All the data from the marketplaces automatically syncs with the eVanik OneWorld Suite through robust API integrations. This saves time and eliminates the risk of manual errors in data entry.
• No Third-Party Module: There is no requirement to install any third-party module (TCP) in your TallyPrime. Evonik is integrated with TallyPrime through the API, ensuring a seamless and secure integration process.
• Easy Mapping: Product and ledger mapping can be done easily in eVanik through a simple user interface and forms provided. This simplifies the process of mapping and ensures accurate recording of data in TallyPrime.
• Sales Tax Report Matching: eVanik provides a matching tool where sellers can match their Sales Tax Report (MTR Report) with the data integrated into TallyPrime. This helps ensure accurate reporting and compliance with GST guidelines.

The process to Import Amazon sales data using eVanik

• Since eVanik is a third-party tool, you have to first create an account on eVanik and then you have to authorize eVanik to pull the data from the Amazon marketplace.

Follow these steps to complete the process

1. Purchase eVanik’s Subscription Plan: Visit eVanik at https://www.evanik.com/ and purchase the plan that best suits your business requirements.
2. Download Chrome extension: Once you’ve created your account, download the “eCommerce Tally eVanik” Chrome extension, provided by eVanik itself, to seamlessly sync data from Amazon.
3. Purchase the Amazon MWS API: Amazon Marketplace Web Service (Amazon MWS) is an integrated web service API that helps Amazon sellers programmatically exchange data on listings, orders, payments, reports, and more. Integrate eVanik with
4. Amazon: Once you have to Amazon MWS API, you can integrate eVanik with Amazon easily.

Watch this video for the complete integration process. Click here.

LEDGER CREATION

• A ledger is a date-wise record of all the transactions related to a particular account such as cash, sales, purchases, and so on.
• There are many ledgers that you can create as per your business requirements but for Amazon accounting, you need to create two ledgers primarily.

Sales ledger

• The Sales Ledger, also known as the Debtors Ledger’ or Accounts Receivable Ledger,’ is a specialized ledger that focuses on customer transactions.
• It tracks sales made on credit, outstanding amounts receivable from customers, and payments received.

Purchase ledger

• The Purchase Ledger, also known as the Creditors Ledger’ or Accounts Payable Ledger,’ is the counterpart to the Sales Ledger.
• It focuses on supplier transactions, tracking purchases made on credit, outstanding amounts payable to suppliers, and payments made to suppliers.
• When you sell on Amazon, the platform deducts various taxes and fees from the final amount it credits. To track all these deductions, you have to create ledgers for each fee and tax also for Amazon.

Types of deductions Amazon Fees

• Closing fee – The closing Fee is charged every time your product is sold on Amazon based on the price range of the product.
• This fee also varies based on the fulfillment channel you are using.
• Referral fee – For each product sold, a referral fee is applicable which varies by product category and is calculated as a percentage of the total selling price of the product.
• Shipping fees – If you use Easy Ship or Fulfilment by Amazon (FBA), Amazon will deliver your products to the customer and charge you a fee.
• (If you are choosing to Self-Ship, you will have to bear the cost of shipping and deliver through 3rd party courier service/own delivery agents).

Additional Fees

• Pick & Pack Fee (FBA Only) – This fee is charged per unit sold at ₹13 for Standard, ₹26 for Overize, Heavy & Bulky items.
• Storage Fee (FBA Only) – This is the fee charged for storing your products in the Amazon Fulfillment Center costing ₹45 per cubic foot per month.
• FBA Removal Fees (FBA Only) – In case you wish to remove your products from the Amazon Fulfillment Center then the following fee rates will be applicable:
• Taxes
• CGST
• SCGST
• TCS
• TDS (Conditions Apply)
• Note: If a seller receives more than 5 lakhs of rupees in payments from Amazon in the previous financial year, then 1% TDS will be deducted from their earnings starting in the next financial year.

Steps to create a ledger for Amazon

1. Click on “Create” from the gateway of the tally
2. Click on ledgers
3. Type the name for the ledger as “Amazon”, as explained already, you have to create ledger for all deductions as well as for Amazon, as you will be receiving payments from Amazon.
4. Fill out the details required details
5. Set alter GST details to Yes and after that one popup will come, make yes in is e-commerce operator field and press “Control and A” to save it.
6. Similarly, you have to create for rest of the taxes and fees. Click here to understand the exact process.

GSTR 1 FILLING

• GSTR-1 is a monthly or quarterly return that summarizes all sales (outward supplies) of a taxpayer. It is a detailed form that requires taxpayers to provide a wide range of information about their GST liability.
• It enables e-commerce sellers to report their outward supplies, including sales made through e-commerce platforms, and ensure compliance with GST regulations.
• You can file GST returns in tally prime using the following three methods

Generate JSON file using TallyPrime and upload on the portal

• In this method, You only have to record your GST transactions in TallyPrime, as usual, and the relevant details will be reflected seamlessly in the GSTR-1 report in TallyPrime.
• After that, you can export the details to a JSON file and upload it to the portal.

Generate JSON file using GST Offline Tool and upload on the portal

• In this method, you have to export your GSTR-1 details from TallyPrime in MS Excel or CSV format, and then import the file into the GST Offline Tool.
• Then you can export the details to a JSON file and upload it to the portal.

File GSTR-1 directly on the portal

• In this method, you can easily copy the details from the GSTR-1 report in TallyPrime and paste them into the respective sections on the portal. Alternatively, you can also fill in the details manually by referring to the values in TallyPrime.
• Out of these three methods, the first method is the easiest to implement, so we will understand how file GSTR 1 using the first method.

Follow these steps to file GSTR 1

Part One: Downloading and Configuring the Data

1. Go to the GST report.
2. Press ALT + E to export the GSTR1 or click on the export option in the top-left corner.
3. Click on the GST return option, and the export GSTR1 screen will appear.
4. Press F2 and enter the time for which you want to file the GST return.
   • You will then see transactions for all state GST registrations.
   • If you want to file GSTR for a specific state GST, press F3 and select the particular state.
   • You will then see transactions for that respective state.
5. Check all the transactions carefully before uploading the data. If you see any deleted transaction in the report, it means you have deleted that transaction from the books. It is mandatory to upload that deleted transaction before GST filing.
6. If the GST data is not visible in the report, press F12 to configure the report for GST data. A small window will appear, and in that window, set all fields to “Yes” as follows.
7. Press “X” to export the data or click on the export button at the bottom.
8. In the next window, specify the file location path and file format according to your needs.
9. Click on the send button to export the file.

Part Two: Uploading Data on the GST Portal

1. Log in to the GST portal and go to the return dashboard.
2. Select the financial year, quarter, and month, then click on the search button.
3. In the next window, click on the “prepare offline” option and upload the transaction file.
4. Upload the exported file, and if there are any errors in the file, they will be shown in the error report below.
5. Once you have uploaded all the files, click on the “Back Files Returns” option located at the bottom right corner.
6. Once again, you will be redirected to the GST return dashboard. Select the year, quarter, and month, then click the search button.
7. Click on the prepare online option.
8. Next, you will see the data in the following format. Click on the ‘Generate summary’ button that appears at the bottom right corner and then refresh it.
9. Click on the “Proceed to File Summary” button
10. In the next window, you will see a summary of the data as follows. Check carefully to ensure everything is correct.
11. Once you have ensured that the summary is correct, click on the ‘File statement’ option.
12. In the next window, you have to choose the authorized signatory and complete the verification using the DSC or EVC method” is grammatically correct.
13. Once you complete the verification process, your GSTR-1 filing process is completed.

References

• Download - TallyPrime 4.0, TallyPrime Server and TallyPrime Developer in India
• One Stop Platform for VPPOB, VPOB and APOB Needs – theGSTco - Your One Stop Platform for VPOB and APOB Needs
• E-commerce Management software for online sellers - eVanik

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