On rare occasions there may be an instance where a Shopify Payout fails and the deposit amount expected for a particular payout was unable to be processed by Shopify at the normal time of disbursement.

Generally, Shopify will correct this disbursement failure in the next payout or a future payout. A2X allows for the correct accounting treatment in these situations so that your accounts are accurate and fully reconciled.

Let's use the following payout as an example:

We have posted this payout over to our accounting system and are expecting to match it to a deposit in the bank for $326.44

At the time of disbursement payment was unable to be made, so we are now left with a payout entry in the accounting system we can't match a deposit back to.

In our next payout detail, we see that Shopify has released the deposit amount of the previous payout.

The $326.44 makes up part of the total deposit for this payout of $1373.00, and this complete entry will be simply matched to the deposit as normal.

However, the Shopify Payout Transaction line is the one we need to close out the previous payout.

If you are a Xero user, you would manually mark the open invoice in Xero as paid using the suspense account to complete this reconciliation process. You would then open the invoice for the next payout (with the total of $1373.00 in our example) and change the account allocation to the suspense account for the $326.44 transaction line only. The debit and credit to the suspense account will net out to $0 as it should, your invoice will be marked as paid and the Shopify Payout failure line will be accounted for correctly.

If you are a QuickBooks Online user, you will find the original payout failure journal, open it and change the bank line to the suspense account.  You would then open the journal for the next payout (with the total of $1373.00 in our example) and change the account allocation  to the suspense account for the $326.44 transaction line only. The debit and credit to the suspense account will net out to $0 as it should and the Shopify Payout failure line will be accounted for correctly.

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