Each order in Shopify is automatically created a Sales Receipt in QBO via integration with SOS.
The current process of reconciling the Shopify and TikTok payouts to the sales receipts in QBO is by matching them to each sales receipt. However, a surge in Retail orders has made the reconciliation very difficult since you have to identify many sales receipts included in one payout.
What is the best way to match or reconcile the Shopify payouts with the Sales Receipts for each order in QBO?
We would love to explore plug-ins or any process to streamline this concern.
We use a service from Bookkeep.com that enters the payout into QBO and then when the payout deposits to the bank, QBO matches it to the Bookkeep entry. It’s really helped us. We don’t use QBO in quite the normal fashion though because of the sheer volume of transactions. We make summary entries only. Check Bookkeep out. I don’t work for them or get a commission. I’ve just been very impressed with their service and support.
Stop matching each payout directly to individual sales receipts in your bank feed. Instead, use the Undeposited Funds workflow in QuickBooks Online (QBO) to streamline the process.
Here’s how to set it up:
Configure your integration to sync all sales receipts to QBO’s Undeposited Funds account (a special clearing account used to temporarily hold funds).
When a payout hits your bank, use QBO’s Bank Deposit feature. From there, select all the sales receipts included in that payout, and then add a line to account for Shopify fees.
The total deposit should now match exactly what was deposited into your bank account. This makes reconciliation fast and accurate.
If your order volume is growing and syncing each sale individually becomes unmanageable, consider switching to a daily summary or payout-level sync. Tools are available that automatically post Shopify payouts (net of refunds and fees) into QBO while still keeping all your order-level data safe in Shopify.
This workflow gives you a clean accounting process without the hassle of matching every transaction by hand.
One way to make this less painful is to reconcile at the payout level first, not the individual order level.
For each Shopify payout, I would line up:
payout id and payout date
gross sales included in that payout
refunds / chargebacks
Shopify fees
tax collected
net payout
matching bank deposit and deposit date
Then the QBO side can use a summary entry or clearing-account workflow that your bookkeeper approves, instead of trying to manually match every order receipt to a deposit. The important review check is whether the Shopify net payout equals the bank deposit, and if not, whether the difference is timing, duplicate import, missing deposit, refund, chargeback, or fee treatment.
Not accounting advice, but this structure usually gives the bookkeeper a cleaner packet to review.
We enter a daily sales summery into our financial software, not each order due to our volume. But each company is different. The other replies here are spot on. We have set up an excel sheet for our journal entry. Line items include Shopify Payments uses UTC (universal time) so look to see when your cut off time is. Ours is 7p. For our monthing reconcilation we loook at orders about 2 days before the EOM (depending on which day of the week it falls) starting at 7p to midnight of the last day of the month. That number should match to the outstanding (credit card receivables or whatever you call it) payout. When funds are deposited into our account is when we recognize the fees. We do the same for PayPal.
Do not try to match a payout to individual sales receipts. One payout is dozens of orders, minus fees, minus refunds that belong to earlier orders, minus anything held back. The receipts will never sum to the deposit.
Reconcile at the payout level, through a clearing account. Every sale posts to the clearing account instead of the bank. Each payout is then one entry that empties part of that account into the bank, with fees, refunds and chargebacks as their own lines. Whatever is left sitting in the clearing account is money Shopify is holding and has not sent yet.
Use the balance transactions CSV, not the payouts summary. Settings, Payments, view payouts, view transactions. It types every row, so you can total fees, refunds and disputes for exactly the rows inside that one payout.
Two traps. The clearing account is never zero and is not meant to be, so do not force it at month end or you have moved revenue into the wrong month. And the sales tax you collected is sitting inside that deposit and is not revenue.