Please explain below points related to the reconciliation process between SAP and Shopify.
1 - For example, If any transactions processed (settled) on 4/14 in Shopify, when it will reflect in bank as payout?
2 - If you could provide an example of, how a transaction process in Shopify OR please process map so that it will be helpful for us to reconcile OR please guide the important points while doing reconciliation.
Hey! let’s see if this detail helps at all.
1. Timing of Shopify Payments Payouts Reflecting in Bank (Example for transaction settled on 4/14):
The payout timing depends on the your country and payout schedule. Settlement time is the period between when a customer’s payment is captured and when those funds are available to be paid out to you bank account.
Settlement times vary by country
Payments captured on Friday, Saturday, and Sunday are consolidated and sent as a single payout.
After Shopify processes the payout, banks typically require an additional 1-3 business days to process and deposit the funds into the merchant’s bank account.
Therefore, a transaction settled on 4/14 would typically reflect in the bank after the settlement time plus bank processing time, excluding weekends and public holidays.
You can view payout statuses in their Shopify admin under Settings > Payments > View payouts to track when payouts are scheduled, in transit, or paid.
2. Example and Process Map of a Shopify Transaction and Payout for Reconciliation:
Transaction Capture: When a customer places an order and pays via Shopify Payments, the payment is captured and recorded with a timestamp in Coordinated Universal Time (UTC).
Settlement Period: The captured payment enters a settlement period (varies by country and merchant ) during which Shopify verifies and processes the payment.
Payout Scheduling: After settlement, Shopify batches payouts according to your payout schedule (daily, weekly, monthly).
Payout Processing: Shopify initiates the payout to your designated bank account or Shopify Balance account.
Bank Processing: The bank processes the incoming payout, which can take 1-3 business days.
Funds Availability: The funds become available in your bank account.
Important Points for Reconciliation:
Payout Statuses: Check payout statuses in Shopify admin (Scheduled, Paid, Failed).
Bank Reference Number: Use the bank reference (Trace ID) provided in Shopify payouts to trace transactions with the bank.
Currency Considerations: Payouts may be in a different currency than the store currency; currency conversion fees and timing may affect reconciliation.
Adjustments: Payouts may include adjustments such as chargebacks, refunds, fees, reserves, or negative balances that affect the net payout amount.
Payout Holds and Reviews: Account reviews or holds can delay payouts; you’d receive notifications in Shopify admin and email.
Failed Payouts: Incorrect bank details or currency mismatches can cause payout failures; these must be resolved promptly.
Minimum Payout Amounts: Some countries have minimum payout thresholds; payouts below this amount remain pending.
Time Zones: Payment capture times are in UTC; consider time zone differences when reconciling.
By understanding these steps and factors, you can reconcile Shopify transactions with their SAP or accounting systems.
Thank you for the details, this will really help us.
Could please confirm which report need to consider for both settlement transactions and payout transactions? Please also let me know how I can download both reports.
You will receive payout reports composed of settled transactions. You can retrieve all of your order transactions and determine which payout transaction each one was settled into. At present, however, there is no settlement report.
@srbadatya, Thanks, this is a really good question because the tricky part is that Shopify payout timing is not always “same day” as the transaction date. In practice, if a payment is processed on 4/14, it will show in the bank after the store’s Shopify Payments settlement window plus the payout schedule plus the bank’s own processing time. So the exact bank date is not always 4/14 or even the next day, especially around weekends and holidays.
For reconciliation, I’d usually think about it as a 3-step flow:
Order/Payment created in Shopify → transaction becomes part of Shopify Payments balance → transaction is included in a payout → payout reaches the bank.
A simple example would be:
Order paid on 4/14
Shopify records the payment transaction
After settlement/availability, that transaction is grouped into a payout
The payout is issued by Shopify
The bank posts the net deposit 1 to a few business days later
The important reconciliation point is that the bank deposit should be matched to the payout, not directly to the raw order total, because the payout is usually net of fees, refunds, disputes/chargebacks, reserves, and other adjustments.
For SAP, the cleanest approach is usually:
use the payout as the source for the bank deposit amount,
use Shopify Payments balance transactions as the detailed support for that payout,
use order transactions only when you need order-level drilldown or to map back to sales documents in SAP.
One more important note: based on the Keith dell reply in this thread, Shopify does not currently provide a separate settlement report. So in practice, teams usually reconcile by linking order transactions → balance transactions → payout rather than expecting one standalone settlement file.