1. Overview of Reconciliation Reports

Reconciliation reports are crucial for ONDC sellers to analyze and identify any discrepancies in commissions and taxes deducted by different parties like the buyer app, seller app, and logistics. These reports help sellers ensure that the deductions are accurate, transparent, and under the agreed terms. This guide helps to understand how ONDC sellers can use reconciliation reports in Bitsila software. 

2. What is ONDC?

ONDC (Open Network for Digital Commerce) allows local businesses to sell their products online, making them visible to a wide range of customers. ONDC ecosystem runs on the seller app, buyer app, and logistic partners.

To sell on ONDC, Sellers need to register and list their product on ONDC using the seller app. After listing the products using the seller app, the business will be visible to potential end customers through the buyer app. Bitsila is one such seller app that allows business to list their products on ONDC and to become accessible in buyer apps like Mystore, Paytm, Pincode, IDFC First, etc. 

3. Which are the parties involved in the ONDC?

There are 5 Parties involved in the ONDC ecosystem such as:

• Sellers: sellers use the seller marketplace, buyer marketplaces, and logistics to sell on ONDC.

• Seller marketplace (Bitsila): A platform that enables businesses to list and sell their products on ONDC's buyer marketplace. 

• Buyer marketplace: marketplaces where buyers can place orders through ONDC, such as Paytm, Pincode, Magicpin, Spicemoney, etc.

• Logistics: Options provided to buyers for selecting their preferred logistics services while placing orders.

• Buyers: End customers who use buyer marketplaces on ONDC to place their orders.

4. Why do ONDC sellers need Reconciliation reports?

Reconciliation reports create transparent transactions among all parties and help sellers to understand all the deductions in the following ways:

• Analyzing deductions such as commissions and taxes from seller platforms, logistics, and buyer platforms.

• Identifying discrepancies in financial records.

• Tracking and reconciling order details and transactions.

• Building trust among sellers, seller platforms, and buyer platforms.

• Adhering to agreed deduction rates.

Note: Seller app and Buyer app commissions will be predefined in the backend upon the acceptance of sellers while making the store live on ONDC.

5. Step by Step guide to using Reconciliation Reports for ONDC Sellers 

a. Reconciliation notifications to sellers 

When the seller app gets paid from the buyer app, the seller app deducts its commissions and processes its payments to the seller. 

When the payment is settled for the seller, a push notification is sent informing them about the transaction made. When they click on the notification it will be redirected to the reconciliation report.

b. Check the Reconciliation Status of Each ONDC order

• Navigate to Finance module, and click on the Reconciliation report

• The reconciliation reports will be open where the sellers get the details of the reconciliation payment status of all the ONDC Orders. 

It includes the order number, order status, reconciliation status, ordered channel, reconciliation by, and date. Sellers can also filter the orders by status, channels, and outlets.

c. Accept the payments processed from the Seller app.

• Navigate to the finance module and click on the Amount settlement report option.

• Here you can accept payments from the buyer app by clicking on the accept payments button.

• A popup will appear to accept the payment with all the details of the deductions from the buyer app, seller app, and logistics. Cross-check all the deductions, select the order that you want to accept, and click on Mark as Payment Made

• Again a confirmation popup will appear click on the Confirm button and now the payment will be accepted from your side.

d. Reconciliation report email will be sent to the sellers

Once the amount is settled from Bitsila, the seller receives an automated email containing the settlement summary. Additionally, the seller has the option to download the reports as a PDF document as shown in the image below. 

6. FAQs

1. What is a reconciliation report?

A reconciliation report is an official record that contains details of all transactions that occurred between the ONDC seller, buyer, and buyer apps. The transactions and deductions are checked, and any differences that need to be fixed can be found through the reconciliation report. 

2. What is the use of reconciliation reports for ONDC sellers?

Sellers can check the deduction like commissions and taxes from various seller app, buyer apps, and logistics. That helps them to cross-check all the deductions and report if there are any discrepancies.

3. What are the details included in the reconciliation report?

The reconciliation report includes a detailed breakdown of sales transactions and other charges such as item value, item value with GST, TDS charges, deductions from the buyer app, conclusions from the seller app, and more. 

4. What if the reconciliation payment is not received for the seller?

Sellers can approach the seller app with the query and the seller app will get in touch with the buyer app and convey the payment status for the order.

5. What if the payment is marked as paid in reconciliation reports and not received by the seller?

Sellers can report the issue to the seller app and they will cross-check the issue in the payment delay and update the payment status.

6. Can the seller see who has processed their reconciliation payment from Bitsila?

Yes, the seller can see the user name of Bitsila staff who has processed their payment with the date and timing.