Shopify Payout Sync to Xero

We recently introduced a new feature to simplify financial transaction management with your Xero integration. This article focuses on Payout and fee management and explains its benefits.

It is possible to receive payments directly from Shopify. However, integrating Qoblex with Xero can enhance this process by providing a more efficient solution for managing transactions. This integration consolidates all necessary information into Xero, offering a strategic advantage. It streamlines the process and provides valuable insights, making it easier to manage transactions.

How does the sync work?

On the regular sync without the Payout feature, you can consider this scenario:

When you make a sale worth $100, we will automatically synchronize the invoice to your Sales account in Xero, and the payment will be added to your Payment account. However, if Shopify takes a variable fee from the sale, let’s say 2% of $100, you will receive a total of $98 in your bank account. It can be hard to reconcile the $98 received from the bank with the corresponding sales transaction.

When the Payout feature is turned ON, we will sync your Shopify Payout and fees to the corresponding ledger accounts you selected. This, in turn, will allow you to sync journal entries to clear the Payment account.

1. We will sync the payout to the corresponding Payout account ($98) and ($2) to the Payment account.
2. We will sync the fees by debiting the Fees account ($2) and crediting the Payment account ($0).

Now that the Payment account has a balance of $0, all payments have been accounted for. Xero can automatically match the bank transaction with the Payout account.

Enable Shopify Payout Sync

To enable your Shopify Payouts in your account:

1. Go to Account Settings.
2. Click Profile & Organization.
3. Scroll down to Preview Features.
4. Click Enable Preview on Shopify Payouts.

Setup your Ledger Accounts in Xero

After you enable the preview for Shopify Payouts, you must select your preferred ledger account where you want to push your payout amount and payout fees.

We will review all your Shopify integrations daily, query the payouts for the current or previous day, and then sync them to Xero.

Allow Qoblex to access your Payouts

To provide access to your Payouts for Qoblex, you need to update the authentication of your Shopify integration:

1. Go to your Integrations > Open Shopify Integration.
2. In the integration settings, click the Update button at the top of the page.
3. Safely update the scopes in your Shopify to access your payouts.

This update is necessary to enable the Qoblex feature to access payouts, update the app, and enable you to return to the configuration screen. After completing this process, your Shopify integration will be ready to pull payouts from Shopify.