Reconciling Shopify Reports

OVERVIEW

Reconciling Shopify Reports is recommended, due to some limitations within Shopify around returns. Loop has solved for the need to reconcile with our Revenue Reports, but it's still important to understand what happens in Shopify. You can learn more about what's actually happening in Loop and Shopify to drive these inconsistencies in Accounting with Loop

In this article, we'll cover:

  • Why Reconciling is Necessary for Shopify Reporting
  • How to Reconcile Shopify Reporting

Why Reconcile? 

Loop Revenue Reports automatically reconcile Shopify sales data with Loop returns data, but it's still important to understand what happens in Shopify and if you need to reconcile for any reason.

How to Reconcile Shopify Reporting

To reconcile your reports in Shopify, you'll need to pull a Sales Over Time report from Shopify:

Sales Over Time Report

  1. Visit Shopify Admin > Analytics > Reports > Sales > Sales Over Time
  2. Select specific date range
  3. Edit columns to include: Order Name, Orders, Gross Sales, Discounts, Returns, Net Sales, Taxes, Total Sales and Gift Card Gross Sales 
  4. View Summary In-App or select Export

How To Reconcile

  1. Sort the exported file by Order Name, so all exchange prefix orders are at the top
  2. From the exchange prefix orders only - move the sum of Discount column to Returns column
    1. The discount value in the sales report is inclusive of the credit value of returned products applied to new orders (loop-discount) and should exist in the returns column 
  3. From the exchange prefix orders only - subtract the sum of Taxes from Returns column and Net Sales column
    1. When Loop marks an item as returned without refunding money, Shopify generates an accounting adjustment to returns and net sales equal to the tax value on new exchange orders
  4. Sort the exported file by Order Name, so all LGC prefix orders (store credit gift cards) are at the top
  5. From the LGC prefix orders only - subtract the sum of Gift Card Gross Sales from Returns column and Net Sales column
    1. Gift card values mirror refunds and need to be added to the report as such


FAQ

Where can I learn more about the values, from discounts to taxes, that I'm seeing in Shopify, and why they need reconciled? Learn more about what's happening behind the scenes in Accounting with Loop

Is there a way to avoid reconciling? Yes! Loop Revenue Reports automatically reconcile Shopify sales data with Loop returns data for you.

Please reach out to support@loopreturns.com with any additional questions.