Hi Sau2610-
I’m providing the link below which provides updated information posted by Loop Returns as of March 26, 2024. As you can see they are updating instructions acting as if this is something store owner’s should already be doing, but its obvious the influx of complaints is forcing them to continously update their FAQ pages as as pertains to this new shopify update.
It’s important to note that these instructions are only for Loop Returns. That said, Loop is considered a 3rd party App just like the many others (Happy returns, Returnly, Aftership, etc.) All that Shopify has really done to notify store owners at this time is to create a small pop up when opening certain sales reports:
You may follow the accounting logic but each 3rd party app will have different exports and process to arrive at some sort of reconciliation. At the very least, this should provide everyone with more information, the complexity, and limitations if using integrated financial app (quickbooks, etc.)
I have yet to test and review the process and am mostly concerned to track and audit payouts against the actual not received, approved, or REAL refunded monies through Loop. That audit in itself is a real pain point, but will be needed based on the other users comments that Shopify actually executed a refund (debit from payouts) for a non-approved or received return. This is the real problem now. We don’t have confidence and clarity in the reporting, and these “phantom” refunds in sales reports for initiated returns by customers not approved or actually refunded by the store owner should never trigger a reduction on our payouts. Furthermore, the payouts are always trailing a few days, and the actual refunds now take 2-3 days to to get processed by Shopify and show up on sales reports then. Not the day we actaully execute the refund. Therefore, we have multiple reports, conflicting data, and days which don’t align up. This makes it more difficult to track the real refunds, adjustments, credits, return fee that get deducted from the return (if you use that method), and so on. I’m thinking that we will have to create Powershell scripts that will look up on order number values, then the data from the different reports to output a reconcile showing the true sales and processed returns. This makes the Shopify analytics useless to us except as a general guideline to our sales. That said, you cant even compare now against prevous months and quarters, as this wasnt the accounting process then and you will certainly see a downward trend in sales as of February forward if you utilize Gift Cards (about 40% of your returns are handled that way), exchanges, or have restocking fees (adjustments). Shopify is just going to reduce your sales the moment the 3rd party app (at least Loop) receives a customer return submission. Loop then opens the archived order, even if the customer never returns it or lies and returns 2 of the 5 items they claimed.
Until you inspect and inspect, receive, and issue a refund, there should be no way that Shopify automatically deduct the value of this intitiated return by the 3rd party app from your sales reporting. They are making some pretty huge assumptions and ignoring other key compononets altogether.
I find it interesting that Shopify says this issue only arrises with 3rd party apps while they promote their own internal new customer checkout with return functionality. There return function does not even support Gift Card refunds and exchange options so why would you penalize everyone that has to pay for a return app to begin with becuase theirs is inferior.
Anyway, I hope this helps and here is the link for review. Enjoy the reading and good luck!
Accounting/Reconcile Instructions:
Thanks Everyone,
Scott