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Applying Lump Sum Payments from Shopify to Unpaid Invoices

  • 1.  Applying Lump Sum Payments from Shopify to Unpaid Invoices

    Posted 13 days ago
    Edited by Ari Cedarlin 13 days ago
      |   view attached
    Hi,
    We recently adopted Shopify Payments and we're having a difficult time finding a way to efficiently reconcile payments. Our bank receives a lump sum payout of the previous day's business which is equivalent to the previous day's sales, minus fees. We might receive dozens of orders in a day and hundreds over a week, and currently our accounting process is to reconcile each invoice line-by-line, with the sale, tax, and fees all being assigned separate G/Ls. We receive a statement from Shopify that breaks down what the payment contains, including sales, taxes, subtracted transaction fees and refunds. Our accountant isn't intimately familiar with the Financial setup options in Business Central, nor am I - but it seems like there has to be a way to at least partially automate this. See a sample of the file we receive, below.

    Thanks in advance.

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    Ari Cedarlin
    Technivorm Moccamaster USA
    Portland OR
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  • 2.  RE: Applying Lump Sum Payments from Shopify to Unpaid Invoices

    Posted 13 days ago
    Hi Ari,
    I like to use a clearing account for any credit card payment program.  The idea is that the individual entries hit the clearing account and then you move the daily deposit as a lump sum from the clearing account to the 'real' Bank Account.

    For your example, you would Credit your AR account to close the invoice using the 'Amount' (27.03).  This will fully close the customer's invoice.
    Then your Debit is to this clearing account for the 'Net' value (26.15) and a Debit for the 'Fee' (2.89) to your expense account.

    When that day's credit card deposit is known, you make a JE to move that lump sum from the clearing account (credit) to the 'real' Bank Account (debit).  You can get this deposit amount from your merchant account provider if they offer a way to login to your account or from your bank when they receive the payment from your merchant provider.

    You can even take it a step further and setup the clearing account a 'Bank Account' as well.  When you do this, you can use the Bank Reconciliation function to 'clear' all of the transactions in the clearing account that make up the lump sum.  This is a way to reconcile each deposit should you want to get down to this level of nitty-gritty details!

    Hope this helps,

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    Crystal Tollison
    Innovia Consulting
    Onalaska WI
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