When a Shopify order has been tagged in Shopify to be synced to the connected general ledger, A2X processes this order twice. The order is still included in the original settlement process, and is processed again as a B2B order.
The First process - the order is fetched and processed as part of a generated settlement.
1(a) The tagged order is still included in the A2X Settlement generation process:
Once a day, the tagged order is fetched by A2X along with all other orders that have been created or edited during this 24 hour period.
A2X creates a settlement that includes this order, by payment gateway type which debits a payment gateway clearing account (or pending payment if the orders are unpaid) and credits the applicable profit & loss accounts, as specified in the Accounts & Taxes page.
2(a) If the order is unpaid in the first settlement, a further settlement will be created when that order is paid.
When the unpaid order is marked as paid in Shopify, A2X will debit the payment gateway clearing account nominated in the Shopify order, and credit Pending Payment.
The Second Process - the order is processed by A2X as an individual B2B invoice.
1(b) The tagged order is created as an individual invoice in the ledger.
A2X creates a B2B Order settlement which syncs as an invoice to the connected ledger which will debit accounts receivable and credit the account selected in the A2X B2B settings page.
2(b) If the tagged order is unpaid at time of syncing, A2X will create a B2B Payment entry.
A2X creates a B2B Payment settlement which will sync as an invoice (in Xero) or a journal entry (in QBO). This entry debits the account selected in the A2X B2B settings page, and credits the payment gateway clearing account which was used in the Shopify Order.
Example #1 - Syncing a Paid Order
An order is created and fully paid by AfterPay is tagged in Shopify with the tag 'A2XB2B'.
Step | Shopify Event | A2X Event | Dr Account | Cr Account |
1(a) | Order Created and Paid | AfterPay | AfterPay Clearing Account | Profit & Loss |
2(a) | Order is Tagged | B2B | A2X B2B | A2X B2B |
Bookkeeper | Bank Deposit Received | N/A | Bank | AfterPay Clearing Account |
Example #2 - Syncing an Unpaid Order, that is subsequently paid by Bank Deposit
An unpaid order that is paid by a bank deposit (which is called Manual payment in Shopify) is tagged in Shopify with the tag 'A2XB2B'.
The account selected in the B2B settings paid is a contra asset account called A2X B2B:
Step | Shopify Event | A2X Event | Dr Account | Cr Account |
1(a) | Order Created, Unpaid | No_Gateway | Pending Payment | Profit & Loss |
2(a) | Order is Paid | No_Gateway | Manual Gateway | Pending Payment |
1(b) | Order is Tagged | B2B | Accounts Receivable | A2X B2B |
2(b) | Order is Paid | B2B | A2X B2B | Manual Gateway |
Bookkeeper | Bank Deposit Received | N/A | Bank | Accounts Receivable |
Example #3 - Syncing an Unpaid Order, that is subsequently paid by Shopify Payments
An unpaid order that is subsequently paid in Shopify using Shopify Payments is tagged in Shopify with the tag 'A2XB2B'.
The account selected in the B2B settings paid is a contra asset account called A2X B2B:
Step | Shopify Event | A2X Event | Dr Account | Cr Account |
1(a) | Order Created, Unpaid | No_Gateway | Pending Payment | Profit & Loss |
1(b) | Order is Paid | Shopify Payments | Accounts Receivable | Pending Payment |
2(a) | Order is Tagged | B2B | Accounts Receivable | A2X B2B |
Bookkeeper | Shopify Pmts Bank Deposit Received | N/A | Bank | Accounts Receivable |
Bookkeeper | Manually "pays" the B2B Invoice from the Contra Account | N/A | A2X B2B | Accounts Receivable |
Example #4 - Syncing an Unpaid Order, that is subsequently paid by a Payment Gateway that is not Shopify Payments
An unpaid order that is subsequently paid in Shopify using PayPal is tagged in Shopify with the tag 'A2XB2B'.
The account selected in the B2B settings paid is a contra asset account called A2X B2B:
Step | Shopify Event | A2X Event | Dr Account | Cr Account |
1(a) | Order Created, Unpaid | No_Gateway | Pending Payment | Profit & Loss |
1(b) | Order is Paid | PayPal | PayPal Gateway Clearing Account | Pending Payment |
2(a) | Order is Tagged | B2B | Accounts Receivable | A2X B2B |
Bookkeeper | PayPal Bank Deposit Received | N/A | PayPal Bank | PayPal Gateway Clearing Account |
Bookkeeper | Manually "pays" the B2B Invoice from the Contra Account | N/A | A2X B2B | Accounts Receivable |