Loop Revenue Reports automatically reconcile Shopify sales data with Loop returns data. This makes it easier for your Accounting Team to keep your financial records accurate and save time on Journal Entries.
It's important to understand why we have created Revenue Reports, in addition to how to use them.
In this article, you will learn about:
- Shopify Total Sales Report (the why)
- Accounting Principles
- Loop Revenue Reports (the how)
Shopify Total Sales Report
To understand why Loop Revenue Reports were created, first view your Shopify Total Sales Report:
- Visit Shopify Admin > Analytics > Reports > Finances > Total Sales
- Select specific date range
- View Summary In-App or select Export
| Gross Sales
||The total value of products sold, excluding Discounts and Returns|
|Discounts||Dollars you have discounted using line item or order-level discounts|
|Returns||Dollars you have refunded during a return|
|Net Sales||Dollars you have captured on products sold; Gross sales - (Discounts + Returns) = Net sales|
|Taxes||Dollars captured for sales taxes|
|Shipping||Dollars captured for shipping costs|
|Total Sales||The total dollar amount you have captured in a time period; Net sales + Taxes + Shipping = Total sales|
Shopify doesn't natively support exchanges, so traditionally you would need to reconcile the Total Sales Report to more easily account for exchange transactions. To reconcile automatically, brands like Zappos have adopted accounting principles.
With Loop Revenue Reports, we have adopted accounting principles which will allow you to more easily report on your store's financials.
The accounting principles highlight the importance of Net Sales (cash coming in). In order to get accurate Net Sales, you need accurate Discounts and Returns.
Gross sales - (Discounts + Returns) = Net sales
When processing an exchange, the accounting principles recommend:
- a refund line item on the original sale, and
- a new sale line item on the exchange
- First order → $100 Gross Sales
- Returned item → $100 Return (Refund)
- Exchange order → $100 Gross Sales
- $200 in Gross Sales - $100 in Returns (Refunds) = $100 in Net Sales
With reporting limitations of Shopify today, you cannot easily report on exchange transactions. This is because:
- Refunds are added to Returns
- Exchanges are added to Discounts
Per the accounting principles, Exchanges should also be added to Returns. To solve for this manually, you would follow the steps in Reconciling Shopify Reports.
Note: Loop Revenue Reports is a detailed breakdown of your Shopify reports. Loop now pulls your Shopify sales data and reconciles Discounts and Returns. giving you accurate Net Sales.
Loop Revenue Reports
Loop Revenue Reports provide you with accurate Net Sales by automatically reconciling both Discounts and Returns. To understand how to use Loop Revenue Reports, you simply access them through the Loop Admin.
How to Access
- Navigate to Analytics > Reports > Revenue Reports in the Loop admin
- Select the Revenue Report that you would like to export and select the Export
- Navigate to Analytics > Exports in the Loop admin and select Download
Note: Reports update overnight, from the previous 24 hours
Types of Reports
|Sales Over Time||View total sales within a time period|
|Sales by Product||View total sales by product title and type|
|Sales by Product Variant||View total sales by product title and variant|
|Sales by Product Type||View total sales by product type|
I don't have access to Revenue Reports. How can I gain access? Loop Revenue Reports are only available to users with Revenue Report permissions enabled. If you have Revenue Report permissions enabled, you may grant access to another user by:
- Navigate to Settings > Account > Users in the Loop admin
- Select the user who you could like to grant access to
- Select the Revenue Reports checkbox
Please reach out to firstname.lastname@example.org with any additional questions.