In January 2020, A2X migrated the 'Pending Transactions' type of transactions to a streamlined new transaction called 'Pending Payments'. In this article we'll outline the key changes, the background for the change and what you need to do to account for these new transactions.
The key changes to be aware of with Pending Payments:
Pending Payments will have their own section on the Accounts and Taxes page.
Pending Payments will have a default account created for both Xero and QuickBooks to receive and offset these pending amounts.
Pending Payment transactions will be created when orders, sales or refunds are recorded in Shopify but no corresponding payments are found in the same payout period.
Pending Payment transactions will be created when payments are found without the corresponding sale or refund in the same period.
This means that when money is recorded as pending, it will accrue into the account and when it is paid, it will be offset against the account. You can read more about how Pending Payments work HERE.
We're making this change because pending transactions are proving to be an unreliable way to reflect the balances pending in each gateway. We often find situations where the initial gateway indicated on an unpaid Shopify order is not the actual gateway the payment ultimately arrives from. As a result, this can create imbalances in pending transaction accounts for specific gateways.
To address this, we are separating the Pending Transactions out of Gateway Transactions category into their own category called Pending Payments, created specifically to account for these pending payments.
What you need to do now
We know that any change can be overwhelming, so we want to make this transition as smooth as possible for all users.
Next time you save a new mapping, A2X will automatically offer to create a default account for all Pending Payments called Shopify Pending Balances and it's of type Current Account for Xero and for QuickBooks.
If you have more specific accounting requirements you can create and use any account you wish in your accounting system chart of accounts.
In general, you shouldn't expect the Pending Payment account to continually accrue a balance, the amount should increase when payments are pending and reduce again as those payments are made (and cease to be pending).
Accounts and Taxes page
There is now a transaction type category on the Accounts and Taxes page called Pending payments:
The Pending Payments transaction type category will include a separate line for each type of pending payment, allowing you to separate out the account mapping and easily locate any pending transaction lines in your account:
We can help
We want to assist you in facilitating this transition as smoothly as possible. If you have any questions regarding this change, please contact our friendly support team. We are happy to help with any questions or clarification required.
Hint: If you are in chat and wish to view this article outside of the chat window, please click HERE