What is Payout / remittance?

Settlement and payout are not the same

• The settlement is the calculation: which orders, returns, fees and deductions fall into a cycle, and what is left.
• The payout or remittance is the money actually transferred to your bank for that settlement, on a given date, with a bank reference (UTR).

One payout usually covers many orders, and one order's money can be spread over several payouts, for example when a return comes in a later cycle.

Why payouts rarely match sales

The payout for a period is almost never your sales for the period, because:

• it covers orders that became payable in the cycle, which may be orders from earlier weeks;
• returns, RTOs and refunds from earlier cycles are recovered from it;
• every fee is deducted, with the GST on it;
• GST TCS and income-tax TDS are withheld and paid to the government in your name;
• ads, penalties, storage and other charges may be set off against it;
• a reserve may be held back for possible returns or claims.

Checking each payout

1. Download the settlement report for the payout.
2. Match the payout amount and UTR to the bank credit.
3. Check that the orders in the settlement are ones you shipped, at the right prices.
4. Check each fee against the current fee schedule.
5. Note the TCS and TDS withheld, so you can claim them back.
6. Track the reserve and any amounts still to come as a receivable.

When a payout is late or smaller

Common reasons are a bank holiday, a change in the payout schedule, an account or KYC issue on the seller account, a large return or claim, or a new reserve. The settlement report and the seller dashboard usually explain it. If they do not, raise a ticket with the marketplace with the settlement reference.

For cash planning, forecast payouts from the settlement cycle and your expected sales, returns and fees, not from sales alone.