The ZipPay payouts are generated as per the data fetched from Shopify.
The expected deposit amount that A2X allocates to the clearing account per ZipPay payout is the gross amount - which means that the ZipPay fees are not deducted. Why? Simply because the ZipPay fees don't pass through your Shopify account, which is what A2X is connected to.
This guide will explain how to confirm that the A2X payouts balance back to your monthly ZipPay detailed statement, as well as how to allocate your ZipPay fees on a monthly basis.
1/ In A2X - sort your payouts list by payment gateway
For reasons of clarity, we have listed below the A2X ZipPay payouts in the month of December, that we will cover in this article:
Please Note: The account in our example is set up to generate ZipPay payouts on a daily basis. However, you can also set A2X to generate either weekly or even better, monthly payout entries for your other payment processors such as PayPal, ZipPay, Sezzle, Stripe etc.
2/ In ZipPay - download a monthly report of account activity for a given period
ZipPay has a reporting functionality that allows you to create CSV disbursement reports of up to 3 months.
a. In your ZipPay merchant portal click on the Reporting tab
b. Select the date range, then click Create Report.
c. A new link will appear below the date arrange asking you to to download the report once it's been generated.
The following information is provided in the CSV download. We have highlighted the column titles relevant to this guide:
Order Date & Time
Merchant Order Reference
Transaction Date & Time
Zip Transaction Receipt
Merchant Transaction Reference
Merchant Fee excl Tax
Merchant Fee Tax Merchant Fee incl Tax
Transaction Fee excl Tax
Transaction Fee Tax Transaction Fee incl Tax
Net Disbursement Amount
We requested the December report as (partly) shown below and excluded/greyed out the unnecessary text detail for simplicity purposes. You will note we have added a border around a single day in the ZipPay report - the total in this selection matches the payout total in A2X for the same day.
We have summarised the ZipPay report daily and added just the necessary items to a pivot table (date, transaction amount, merchant fee including tax, transaction fee including tax, and net disbursement amount) to easily compare the totals.
3/ Compare and balance the A2X payout amounts to the ZipPay Statement data
And summarised to include the total of the fees:
This is the flow of events:
Throughout the month, A2X is posting the ZipPay payout total or 'expected deposit amount' to the Gateway Clearing account.
Throughout the month your ZipPay deposits are received into your bank account, net of fees. These deposits are allocated to the Gateway Clearing account to offset the balance entered by A2X.
At the end of each month, the difference in your Gateway Clearing account will generally be the ZipPay fees. The fees need to be accounted for by completing a journal entry deducting the monthly fee total from the Gateway Clearing account, allocating to your ZipPay fees expense account.
Please Note: On the odd occasion, the difference in the Gateway Clearing account may also be caused by a carry over balance for a transaction that hasn't cleared yet.
If we put the above flow of events into numbers:
A2X has allocated an amount of $17,735.03 to the Gateway Clearing account for the month of December 2019.
We have allocated all ZipPay deposits throughout the month to the Gateway Clearing account - the total of the ZipPay deposits for December 2019 is $16,938.91.
This leaves a balance of $796.13 in the Gateway Clearing account - which is the total of the ZipPay fees for December 2019.
4/ Account for the ZipPay fees using a manual journal entry
In QuickBooks Online, the monthly entry for ZipPay fees for the December 2019 would look similar to this:
In Xero, the monthly entry for ZipPay fees for the December 2019 would look similar to this:
The end result is that the Gateway Clearing account is reconciled back to $0.00.
As mentioned above, on the odd occasion there may be a balance that will carry forward into the next month due to timing.
If you need more information on how ZipPay payouts work in A2X, please reach out to our support team anytime.
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