When A2X for Shopify B2B is enabled, it’s important to adjust your bookkeeping procedures to ensure that synced B2B orders reconcile correctly at month-end.
This article explains how to apply payments to B2B orders synced from Shopify to your connected accounting ledger. We cover two typical workflows depending on how payments are received.
The following sections cover three typical workflows that may be used by your business. For a detailed explanation of the accounting debits and credits raised by A2X, please read further here.
Example 1: B2B Order Paid by Bank Deposit
Workflow:
Shopify order is tagged with A2XB2B and synced to the accounting ledger as an open invoice
Payment is made by the customer via direct bank deposit
The bookkeeper matches the bank deposit to the open invoice
OR the Shopify order is manually marked as paid before the bank deposit is matched
Ensure that B2B Shopify Payments is enabled in your A2X for Shopify B2B settings.
Key points:
The bank deposit is manually matched to the invoice in the ledger (adjusting if needed for discounts or early payment terms).
A2X for Shopify B2B will detect the payment and update the Shopify order to show as fully paid (if it hasn’t already been).
The payment method in Shopify will display as Manual.
Important:
Shopify orders must be marked as paid using the Manual payment method for the A2X-generated debits and credits to reconcile correctly.
Example 2: B2B Order Paid in Shopify Using a Non-Manual Payment Method
Workflow:
Shopify order is tagged with A2XB2B
A2XB2Band synced to the accounting ledgerPayment is made in Shopify using a standard payment gateway (e.g., Shopify Payments, PayPal, AfterPay)
In this case:
The synced B2B invoice won’t be paid by a direct bank deposit.
Instead, the bookkeeper must manually mark the invoice as paid in the ledger using the account nominated in the A2X for Shopify B2B settings.
When the synced invoice is paid in Shopify using any method other than Manual | Other, the bookkeeper must mark these invoices as paid using this same account.
How to Apply the Payment
In Xero:
Ensure the nominated B2B clearing account (e.g., "A2XB2B") is set up in the Chart of Accounts with "Enable payments to this account" selected.
When marking the B2B invoice as paid, select this nominated account as the "Paid From" account.
In Xero, it will look like this:
Pay the synced B2B invoice using this account, as shown below:
In QuickBooks Online:
When recording the payment, select the nominated B2B clearing account as the "Deposit To" account.
In QuickBooks Online, it will look like this:
Summary
Manual payments (bank deposit): Match the deposit to the open invoice. A2X for Shopify B2B will update Shopify as paid.
Non-Manual payments (payment gateways): Bookkeeper manually applies payment to the invoice using the nominated clearing account.
Correct payment application ensures your month-end reconciliation matches accurately between Shopify, A2X, and your accounting ledger.