How do I allocate my Shopify payment?

I appreciate you for laying out the details of your concern, @Repurposed. I'll share some information about how you can allocate the downloaded payments in QuickBooks Online (QBO).

QuickBooks matched the downloaded transaction with the one you already entered. This links the two, so there aren't any duplicates. All you have to do is make sure the match is correct.

Here's how:

1. Go to the Banking menu.
2. In the Banking tab, locate and click the payment to expand it.
3. Select the Find Match radio button.
4. Review the Matching records found in QuickBooks. This is the possible matching transaction you already entered in QuickBooks.
5. Select the link next to each match to get more details and ensure this is the correct match.
6. If it is the correct match, close the open transaction.
7. Select Match.

QuickBooks now knows the downloaded transaction is the same one you already entered. You can also see this article for more insights about the process: Categorize and match online bank transactions in QuickBooks Online.

Also, I encourage you to reconcile your accounts every month. This way, you can effectively manage your income and expenses, and detect any possible errors accordingly. For the step-by-step guide, you can refer to this article: Reconcile an account in QuickBooks Online.

If you need more help with matching your transactions to QBO, please let me know in the comments below. I'll be around to help. Have a great day!

Thanks, Kevin. It actually didn't match anything, presumably because I have every individual transaction in there due to the connector. Thank you for providing the detail as it definitely got me started. I matched each of the transactions for that weekend, but the transactions are the pre-fee amounts, so I'm off by the total amount of fees for the period.

I'm assuming I have to select Resolve (the amount of which is the fees), but where am I allocating that amount? I thought maybe I just entered a negative to the SHOPIFY FEES account, but that just doubles the amount already in that account. So clearly something has to offset that amount. I just don't know where.

Thanks!

Thanks for the quick response, @Repurposed.

I've got you covered. We want to ensure that we're giving you the correct steps to answer your question.

May I know if the transactions in your Shopify fees account are separate transactions? Also, do you have the option to edit the imported invoice from Shopify?

I'd appreciate it if you could provide more details about your concern. Thanks in advance for any further information. Take care!

Hi again, @Kevin_C,

Yes, the fee for each Shopify invoice is listed individually in the SHOPIFY FEES account. 

And yes, I am able to edit the invoices in QBO.

Thanks! 

Hi there, @Repurposed. Thanks for coming back here and for providing more details about your banking concern.

To isolate the issue, you can use the Resolve Difference option to offset the amount. Also, to select the correct account where you can allocate the fees, I recommend reaching out to your accountant. This way, they can further guide you in recording the fees and provide you with other actions you can take. 

Once everything is settled, you can refer to these steps to use the feature:

1. In your QuickBooks Online (QBO) account, go to the Bookkeeping menu and select Transactions. From there, click Bank accounts.
2. Then, in the Bank and Credit Cards window, ensure you have selected the Bank Account where the transactions belong.
3. Next, locate and select the relevant Transaction on the For Review tab.
4. Click the Find Match button.
5. On the Match transactions page, tick the box for the Shopify payment.
6. Then, select Resolve Difference to open the Add resolving transactions fields.
7. Click Add new transaction.
8. From the Category section, select the Bank Fees expense account for the Shopify fees.
9. Input the Amount of the bank and select Save and close when done. 

For more information, please check out this article (this is a QBO AU article but the same process applies to QBO US users): How to account for Bank Fees when matching transactions in Bank Feed.

Also, QBO makes it easy for you to make sure the amounts of your account match your real-life bank statements. This is made possible by doing the reconciliation process regularly. When done, pulling up a report is also a breeze. This will serve as your reference to prevent mistakes when doing future reconciliations. 

I'm always glad and ready to back you up if you have any other banking concerns. Don't hesitate to post a reply below and I'll assist you as soon as possible. Keep safe always and have a good one. 

Thank you, @DivinaMercy_N, but I had already gotten that far with @Kevin_C's help. I know the process. I'm just uncertain where to allocate those fees. I had done as you suggested, using the account setup for the SHOPIFY FEES, but as I said, the connector already added those fees to that account, so if I do so it doubles them.

You are correct that this issue more an accounting question than a QBO technical, but I'm still hoping someone in the Community might be able to help. 

But again, thank you for your response!