Hi Everybody
My client has received an advance on sales from Shopify. Theres a funding cost attributable to this advance. I can set up the liability when the advance hits the bank. I can also account for the interest. I repay the advance based on a percentage of shopify sales.
I'm struggling with how to bring the sales to account
Can anyone shed any light on this?
TIA
Zappy
Hi Zappy,
Thanks for laying that all out so clearly. I can see why that's doing your head in a bit. From what you've described, it sounds like the mismatch is coming from the way the gross sales are being reported on the Shopify side rather than anything going wrong with your entries in MYOB. Your journals for the advance and repayments actually look spot on. Since the gross sales figure you need isn't lining up and isn't visible in Shopify, the best next step would be to reach out to Shopify support directly. They'll be able to dig into how the sales are being processed and reported in their system, and why it's not matching.
Regards,
Sai
I am the accountant or bookkeeper
Specifically I have a capital advance I am paying back
It's an advance on sales
Ive recorded the advance as
Dr Bank
Cr Advance liability
When I pay the advance back from the bank account it's
Dr Advance liability
Cr Bank
I know how much Ive paid back because it has come off the gross sales
I only want to record the sales but I can't see the gross sales in Shopify
The capital account and the gross sales reports do not align
Ive reached out the busienss owner and he cant shed any light either.
Ive also asked AI in Shopify
Not helpful
Kevin V Russell
Zappy Business Services
Hi Zappy,
It can definitely be tricky to work out how to bring Shopify sales and any related advances to account, especially when payouts are already net of fees and repayments. In general, a lot of businesses will record the full sales for the period to their normal income account, then separately record any fees and any repayments of a Shopify advance, so the reports still show the real sales figures.
That said, the exact setup and which accounts to use can really depend on your situation, so for proper accounting and tax advice, it’s best to run this past your accountant or bookkeeper and have them confirm the right way to record it in your file.
Regards,
Genreve
