A2X can Generate Accounts in your Chart of Accounts
A2X fetches your payout data from Shopify and categorises the transactions into the higher level transaction types on the left-most column, such as Discounts or Payment and Selling Fees.
When you first set up your Accounts and Taxes mapping, you will see that A2X can create a number of generic default accounts for you to map transactions to.
For example, you'll see "Create account Shopify Sales" in the first row.
When you select this option, A2X will automatically connect to your accounting system and create an Income account called 'Shopify Sales'. Then, it will map all applicable sales from payouts into that income account in your general ledger.
Alternative to A2X-Generated Accounts
Because A2X is connected to your accounting software, it is importing your complete chart of accounts. If A2X detects an account that already matches the default, then it will be pre-selected. As an example, in the situation below, there is already an account called "Sales", so A2X will not offer to create another one.
Instead of our generic default accounts, you can select your own account for any transaction type. Just click on the "x" to open the dropdown, use the scrollbar to find and select the account from your Chart of Accounts list.
A2X uses account codes that indicate the accounts were created by A2X such as: "a2xssales" and "a2xsrefu". This will differentiate them from the default codes which are often numeric sequences such as 200, 201 etc.
The generic accounts created by A2X will assign your transactions into the account types, that will generate a reasonable set of financial reports without needing to spend a lot of time on the account mapping process.
How A2X Assigns Account Types for Accounts generated
The names of the account types created in Xero and in QuickBooks are slightly different but, in accounting terms, they are the same.
The table below shows the basic account types for each accounting solution so you can find them in your reports:
Expenses and Sales or Revenue or Income accounts will be on your Income Statement (Profit and Loss Report). Current assets and current liabilities will be on your Balance Sheet.
To start experiencing the simplicity of doing your Shopify accounting in A2X, click on Save mappings at the bottom.
This creates the accounts in Xero or QuickBooks Online and also maps these new accounts to your payout transactions. With this setup task complete, you are ready to send your first payout!