I've just started my online store on Shopify, and first few orders have trickled in. I have an integration with Veeqo, which then integrates with Xero. So each order flows through perfectly, and an Invoice is created in Xero.
So far so good.
My question is around the reconciliation in Xero, between these invoices and the bank payments. As I'm using Shopify Payments, the amount coming in to my bank account is the invoice value less than transaction fee from Shopify Payments.
Can anyone guide me to the right steps I should do in Xero, in order to reconcile bank statement and invoices as the amounts differ, and also how to account for the transaction fees?
So the fees never get reported to the bank account feed? You could need to "find & match" the bank payment to the order, then add a fee at the bottom to get the correct amount. We do this for Amazon payments to our checking account. We do not for PayPal. It's why we're not moving to Payments just yet. Instead of $98 credit, we want to see $100 credit, $2 debit. Makes reconcile a breeze.
standoutd: I'll give that a try when my first Shopify Payments hit my bank account later today. It does make it alot more messy I guess as it has to be done order by order.
I might move to Paypal payments in that case! Just hate having to pay an extra 2% to Shopify on top of the hig fees from Paypal already....