In e-commerce, you’ve probably noticed the same thing that many others experience:Sales look great on paper, but when it comes to cash in the bank, it doesn’t add up.Businesses struggle with delayed settlements, high returns, and accounting records that don’t match reality.
You’ve done everything right – but things just aren’t matching. And it’s not because you’re doing something wrong, it’s simply because e-commerce generates multiple reports for the same transaction, and if you don’t reconcile them properly, mismatches are inevitable.This is where your Reconciliation MIS comes in. Without it, things are bound to fall through the cracks. But with the right processes in place, you’ll be able to manage your finances more confidently and reduce errors.
In this blog, I’ll walk you through 7 practical reconciliations that every e-commerce business needs to track, and I’ll show you exactly how to do it with simple steps and real-world examples.
1. Orders Booked vs Orders Delivered Reconciliation
What usually goes wrong:
You may track the orders that come through the platform, but sometimes, sales numbers include orders that were never delivered or canceled last minute. This is where the mismatch begins.
What you need to do:
Make sure you have a simple sheet that tracks:
- Orders placed
- Orders canceled
- Orders delivered
- Orders pending
For example:
- Orders placed: 100
- Orders canceled: 10
- Orders delivered: 90
You should only recognize the 90 delivered orders as actual sales. The other 10 need to be adjusted accordingly.
Why this matters:
This step prevents your sales figures from being inflated and sets a solid foundation for further reconciliations.
2. Delivered Orders vs Returns Reconciliation
What usually goes wrong:
Once a product is delivered, many businesses treat it as a completed sale, but returns have yet to be accounted for. When you don’t account for returns properly, your books will be overstated.
What you need to do:
Track returns at every stage. Keep a record of:
- Return requested
- Return approved
- Return received
- Refund processed
For example:
- Delivered orders: 90
- Returns requested: 12
- Returns received: 9
You need to subtract the 9 returns from your delivered orders, reducing your net sales accordingly.
Why this matters:
It ensures that your financial reports reflect actual sales and not potential ones. This step prevents overestimating your revenue.
3. Returns Received vs Inventory Reconciliation
What usually goes wrong:
After processing a return and issuing a refund, many businesses fail to update inventory properly. If returns are not matched with physical inventory, your stock levels may be overstated.
What you need to do:
Track returns carefully and categorize them as:
- Resalable
- Repairable
- Non-saleable
For example:
- Returns received: 9 units
- Resalable: 6 units
- Damaged: 3 units
The 6 resalable units should be added back to your inventory, and the 3 damaged ones need to be written off.
Why this matters:
Failing to adjust your inventory for returned products means your stock figures will be inaccurate, which could affect future purchasing and planning.
4. Sales vs Settlement Calculations Reconciliation
What usually goes wrong:
Founders often assume that sales reported by platforms automatically translate to cash received. However, platform deductions, refunds, and fees can delay the process.
What you need to do:
Track settlement calculations separately:
- Net delivered sales
- Platform commission
- Logistics charges
- Refunds
- Penalties or other deductions
For example:
- Net delivered sales: ₹90,000
- Deductions (commissions, fees, etc.): ₹11,500
- Expected settlement: ₹78,500
Make sure the expected settlement matches your actual bank credit for that period.
Why this matters:
This helps you identify discrepancies early, especially when settlements are delayed or there are excess deductions, preventing cash flow surprises.
5. Settlement Reports vs Bank Credits Reconciliation
What usually goes wrong:
You may review your platform’s settlement reports, but if you don’t reconcile them against actual bank credits, you won’t know if the correct amount has been deposited.
What you need to do:
Track the following on a weekly basis:
- Opening settlement balance
- New settlements added
- Actual bank credits
- Pending amounts
For example:
- Settlement released: ₹78,500
- Bank credit received: ₹75,000
- Difference: ₹3,500
You’ll need to track this discrepancy until it’s resolved.
Why this matters:
This is where real cash leakages and delays are detected. If settlements aren’t matching your bank credits, you need to investigate further.
6. Sales vs GST Reconciliation
What usually goes wrong:
Your GST calculations might be based on sales figures that aren’t matching up with actual cash received or returns processed.
What you need to do:
Keep a sheet that tracks:
- Gross sales
- Sales after returns
- Taxable value
- GST charged
- TCS deducted by platform
- GST reported in returns
Why this matters:
Mismatches in your GST calculations could lead to excess GST paid or filing errors, which will create trouble down the road during audits.
7. Inventory Movement vs Accounting Records Reconciliation
What usually goes wrong:
Inventory movements (sales, returns, damaged goods) are often not properly tracked in the books. Without this reconciliation, your inventory valuation and cost of goods sold (COGS) could be off.
What you need to do:
Track these movements monthly:
- Opening stock
- Sales dispatches
- Returns added back
- Damaged or written-off stock
- Closing physical stock
Why this matters:
When these figures don’t match your financial records, you could end up with inaccurate COGS, which affects profitability.
Conclusion
Managing e-commerce operations introduces complexity that makes tracking accurate numbers difficult.Reconciliation is a continuous process that, when done correctly, can prevent costly mistakes and streamline operations.By maintaining simple reconciliation sheets and checking them regularly, you’ll be able to track where discrepancies happen, address cash flow issues, and make more informed decisions.
The key takeaway: With the right reconciliation MIS, you can ensure that the business operates on facts, not assumptions, and make financial decisions with confidence.
LinkedIn Link : RMPS Profile
Prepare by : Labh Modhiya www.linkedin.com/in/labh-modhiya-594644242
This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
Published on: February 7, 2026