Reconcile Sales Information in Xero

Overview

In some cases, you might have to reconcile your Shopify sales information with your bank feed in Xero.

Shopify creates an authorized invoice for each Shopify order and then applies a payment to the invoice. How you reconcile in Xero will depend on how you've mapped your Payment account in your Xero Integration app settings.

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There are two recommended approaches:

  1. Map the payment account to a bank account where your funds are deposited
  2. Map to a clearing account (which is typically a current asset account with payments enabled)

Select the option below to see more information about each.

 


 

Before you begin your reconciliation, it is important to make sure that the Xero Integration is configured for this approach.

These instructions assume you are using Shopify Payments to process credit card transactions and you've already mapped your payment account to the bank account where your credit card batch deposit is made.

 


 

Export Shopify Payments Fees and Adjustments

Within the Settings page of your Xero Integration, under Payout settings, select Export your payout fees and adjustments from Shopify Payments.

Export your payout fees and adjustments from Shopify Payments

You can then choose a Payout fees and adjustments account.

Payout fees and adjustments account

 


 

Export all orders to a single contact

Within the Settings page of your Xero Integration, under Customer export settings, select Do not export customers to Xero.

Do not export customers to Xero

When the app exports data, fees and adjustments for any Shopify Payments payouts contained in the export date range will be sent to the account you selected. There will be one entry per payout for both fees and adjustments.

If you select a bank account as the payment account, fees and adjustments will appear as Spend Money transactions on the account.

 


 

How to reconcile with your bank feed

Many of your customers will pay using a credit card. One challenge with reconciliation, in this case, is that funds arrive as batch deposits which involve multiple Shopify orders.

To reconcile this information, you need to match your deposits with the appropriate invoices.

From your Xero dashboard, select Accounts, then select the Reconcile to start account reconciliation.

account reconciliation

On the right side of the Reconcile screen, select Match, then select Find and Match.

Search by Name using the keyword Shopify to find all invoices created by Shopify.

Once you find all Shopify invoices, select all invoices for that day; the totals should match, and select OK to reconcile.

 


 

Before you begin reconciliation, make sure the Xero Integration is configured for this approach. These instructions assume that you've already mapped your payment account to a clearing account.

 


 

How to reconcile with your bank feed

Think of a clearing account as a running total of sales that will increase and decrease over time. An invoice paid from a clearing account increases the total of the clearing account while reconciling a deposit decreases the total of the clearing account. The clearing account is a rolling amount due to delays in credit card processing, but in the end, when all orders are done, and all deposits are made, the clearing account will reach zero.

To reconcile this information, you need to match your deposits with the appropriate invoices. Create a receive money transaction and assign it to the clearing account.

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