Shopify recently updated its returns process, impacting how returns and refunds are managed across all store levels. These changes affect A2X payouts:
Impact on A2X:
Changes affect A2X finance summary reports from March 2024 onwards.
Historic discrepancies in payouts may occur due to missing return fees or returns/exchanges.
Identifying Returns
If you know you are using the new Shopify Returns or exchanges feature, we suggest following the steps below to ensure accuracy in your financial records and identify any historical differences between A2X and Shopify, then contact A2X customer success.
1. Compare Finance Summary Reports:
Generate Reports: First, generate the A2X Finance Summary Report and the Shopify Finance Report for the specific date range you want to check. |
Compare Reports: Compare these two reports side by side. If you notice any differences, proceed to the next step. |
2. Run a Reconciliation Report:
Use the A2X Reconciliation Tool: Using the A2X Reconciliation Tool run a reconciliation report to identify the specific discrepancies. Learn how to use the A2X Reconciliation Tool. |
Identify Differences: After running the reconciliation report, note any differences between the two reports. Pay special attention to discrepancies related to returns. |
Note: During reconciliation, you might find orders missing from A2X. This is due to how third-party apps you use may be impacting your finance summary report. For instance, Shopify's handling of exchanges can lead to accounting discrepancies when using third-party apps like Loop Returns.
If you encounter a Loop-related order in your reconciliation, consult this Loop Reconciliation article for guidance on resolving these differences.
3. Handle Return Discrepancies:
Share with Customer Success Team: If you identify differences related to returns and they are missing in A2X, share this information with the A2X Customer Success Team. They can assist in generating the missing return data for your historic payouts. |
4. Check Pending Balance:
Review Pending Entries: In the A2X Finance Report, check the "Pending Balance" section. Look for entries marked as "Pending Added" and "Pending Removed". |
Scenarios of Pending Payments: Pending payments can include genuine pending payments, unpaid orders, and refunds owed. |
5. Verify Net Pending Values:
Export and Pivot the Report: To verify if the net of the pending values is real pending values, export the A2X Finance Report into a spreadsheet. |
Create a Pivot Table: Pivot the report to highlight orders with open pending values. |
Review Orders in Shopify: Review these orders within Shopify to check for accuracy. |
Note: We recommend you use a spreadsheet (In Excel, Google Sheets or a similar platform) to copy and complete the reconciliation process.
By following these steps, you can accurately identify and address historic discrepancies in your A2X and Shopify finance reports.
If you'd like to take a more detailed approach to reconciling returns discrepancies resulting from Shopify’s changes to returns and refunds to the Shopify sales over time report, we suggest following our 'Shopify changes to Returns and Refunds'.