Shopify sales transactions out of sync with payouts - HOW does one balance this in Wave?
Rübezahl
Member Posts: 4
I'd like to simply know how I can accurately record a sales transaction with California sales tax from Shopify payouts AFTER Shopify takes their cut (2.9% + $0.30) prior to depositing my funds?!
Or put this way: By the time Shopify's payout reaches my bank, Shopify will have subtracted its fee where the deposit now no longer represents the original financial sales transaction - not the amount collected, not the sales tax collected.
Example
- Original Sale incl California sales tax = $500
- Shopify deposit to my bank = $480
- the deposit is inaccurate in relation to the original sale and the tax charged.
Apparently there's an app that can handle this type of thing but not retroactively!
So it would be most helpful for me to know HOW even an app interacts with Wave so as to correctly enter the data into my Wave ledger.
Do I need to manually enter a Shopify transaction as e.g. Journal entry with the correct values and then merge it with the bank's deposit (Shopify)? Again I don't know the effects of a merge ...
A baffled noob
PS: Is my question unclear or is there nobody out there who knows how?
Comments
Hey @Rübezahl !
As you mentioned, many credit card processors will deduct fees from the original payment made by your customer. This leaves you with the net amount in your Wave account and a fee you need to account for. Good news though, we have a great guide on how to account for transactions fees like these. Feel free to check it out here:
I hope this helps!
Hi Julian,
Thanks for the reply so far.
Actually no, that's oversimplified. In my desire to be concise, my question turned out incomplete. My bad. The approach of the provided link does not allow me to accurately track how much I've collected in sales tax for example.
I need my Wave ledger to represent the actual sales transaction, accounting for and properly categorizing:
(1) Retail price,
(2) Sales Tax,
(3) Total sale amount [1+2],
(4) Shopify Fee*,
(5) Bank Deposit [3-4]
*2.9% + $0.30
Example:
Retail price = $318
Sales Tax = 23.06
Total = $341.06
Shopify Fee = $10.19
Bank Deposit = 330.87
Wave only gets the Bank Deposit value. I need a way to elaborate with the missing details of this transaction which is obviously inaccurate and incomplete in Wave as it's recorded right now. Another flaw is that I cannot simply add sales tax to the Bank Deposit, as it does not represent the Retail price. If not done correctly, the numbers don't add up correctly.
The developer for the Shopify app which does this automatically for any future transactions describes his app's process as: ".. payouts are imported to Wave in three transactions: withdrawal, deposit, and an expense transaction for Shopify fees ..."
If this is the best approach or if there is another approach, either way, I need some help in going through those steps at least once if I'm to make successful use of your software.
PS: There may come a time when I charge for shipping, which will add a new 'account' to the equation.
PPS: I've been reading through your community however that is a very tiring endeavor with an overabundance of verbiage that does not represent my question. {SIGH}
Hey @Rübezahl !
Thanks for the additional breakdown. Splitting your transaction to account for Shopify's processing fee's using the workflow in the Help Center article attached earlier should still do the trick here. I attached a screenshot for reference below:
To clarify, you can apply sales tax directly on your transactions by pressing "Include sales tax" when editing your transaction details like so:
I hope this helps!
Hi Julian,
I'll test this today and see if this works.
Hi Julian,
You know, it took me a while to wrap my brain around this or rather unwrap my brain from a specific conceptualization that didn't need to be quite a detailed. In short, this worked!
Thank you so much!!
Now the next conundrum ... balancing a credit card account ... perpetual usage with its shifty charges has always confused me as I lose track over time.
When splitting the transaction, how do you make one part income and one part expense? It's only letting me categorize each split as a type of income.