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Seller payout glossary: RTO, DD+7, UTR, TCS, settlement and more, in plain words
By the Veritally team · Updated · 5 min read
Quick answer
Payout reports use a short list of terms again and again. The ones that matter most: settlement (one payment covering many orders), UTR (the bank reference that proves a transfer), RTO (a parcel returned undelivered), DD+7 (Amazon releases money 7 days after delivery), and TCS and TDS (taxes withheld from your payout that you can claim back).
Key points
- Settlement or payout: one transfer that pays for many orders, after deductions.
- UTR: the bank's reference number for a transfer; use it to match a payout to your bank statement.
- RTO: return to origin, a parcel that was not delivered and came back to you.
- TCS and TDS: taxes the marketplace withholds and deposits against your PAN or GSTIN; you can claim credit for them.
- Remittance: the courier paying you the cash it collected on COD orders.
Payout and bank terms
| Term | What it means |
|---|---|
| Settlement / payout | One transfer from the marketplace that pays for many orders, after fees and deductions |
| Settlement report / payments report | The file listing every order and deduction behind a payout |
| UTR | Unique Transaction Reference: the bank's number for a transfer. Matches a payout to a bank credit |
| NEFT / IMPS | Bank transfer methods marketplaces and couriers use to pay you |
| Reserve / unavailable balance | Money held back for now, for example until returns are settled |
| DD+7 | Amazon India's rule: money for an order is released 7 days after delivery |
| Payment cycle | How often and how long after delivery or dispatch you are paid |
Order and shipping terms
| Term | What it means |
|---|---|
| Sub-order | Meesho's number for one item in an order; claims use it |
| Order item ID | Flipkart's number for one item in an order |
| AWB | Air waybill: the courier's tracking number for a parcel |
| RTO | Return to origin: parcel not delivered, sent back to you |
| Customer return | Parcel delivered, then returned by the buyer |
| Volumetric weight | Length x breadth x height divided by a number like 5,000; couriers bill the higher of this and actual weight |
| Weight slab | The weight band you are billed for, rounded up |
| COD | Cash on delivery: the courier collects cash from the buyer |
| Remittance | The courier paying you the COD cash it collected |
Fees and deductions
| Term | What it means |
|---|---|
| Commission | The marketplace's percentage of the sale |
| Fixed or closing fee | A flat fee per order, on some marketplaces |
| Collection or payment fee | A fee for handling the buyer's payment |
| Penalty | A charge under the marketplace's seller policies |
| Recovery | Money taken back from a later payout |
| Adjustment | A correction, up or down |
Tax terms
| Term | What it means |
|---|---|
| TCS (GST) | Tax collected at source under GST by the marketplace; claim it in your GST returns |
| TDS (194-O) | Income tax deducted by the marketplace; shows in your Form 26AS and is claimed in your income tax return |
| GST on fees | GST charged on the marketplace's fees; usually claimable as input tax credit |
More detail on taxes: TCS and TDS on marketplace payouts.
Put it to work
The free payout check reads your report and explains each line in these plain words, order by order.
Frequently asked questions
What is UTR in a marketplace payout?
The bank's reference number for the transfer. Find it in the payout report and in your bank statement to confirm the money arrived in full.
What is the difference between RTO and a return?
RTO means the parcel was never delivered and came back. A return means the buyer received it and sent it back. They are charged differently.
What does DD+7 mean on Amazon?
Delivery Date plus 7 days: Amazon India releases the money for an order 7 days after delivery, then pays it in the next scheduled transfer.