Here we discuss the types of journal entries available for Shopify
Shopify is a cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. Bookkeep enables you to integrate your Shopify stores to automate journal entry postings.
The three journal entry postings we automate with Shopify are:
- Payments Deposit
The Ecommerce journal entry posts to your accounting platform on a daily basis the sales from the prior day. This aims to capture the gross sales down to the net sales including discounts, refunds, etc. Additionally, this journal entry breaks down the payments by tender type such as Shopify payments, third party gateways, Paypal, gift cards, etc. See below for an example mapping. This journal entry also captures any pending payments as there could be orders completed that still have pending payments which results in an accounts receivable.
The second journal entry we support for Shopify is the Payments Deposit. This journal entry captures on a daily basis any new deposits coming to your bank account related to Shopify Payments. Shopify Payments represent any sales that were processed by Shopify resulting in an increase to your Shopify balance. This Shopify balance is then decreased any time there is a deposit to your bank account which is captured in this journal entry. This journal entry also captures any fees related to processing those sales by Shopify. You may also see other adjustments and any repayments of Shopify loans in this journal entry posting. See below for an example mapping:
The final journal entry posting we offer for Shopify is the Cost of Goods Sold (COGS). Here we capture and post the Cost of Goods sold for prior day sales. This represents an increase in Cost of Goods sold and a reduction of Inventory since items that were sold are removed from inventory and into COGS. This journal entry also captures the impact to inventory and COGS when a return occurs since an item comes back into inventory and is removed from COGS. This journal entry is posted daily for prior day sales. See below for an example mapping:
If you have any questions regarding our Shopify journal entry templates, feel free to reach out to firstname.lastname@example.org.