Tags:
Reconciliation
Holding account
Bank type account
Clearing type account
Account type of Shopify holding account - Xero Bridge app
Shopify Holding account is a temporary account and does not have an ‘underlying bank statement’.
When bank type of account is selected for Shopify Holding Account:
Normally an account selected under Shopify Holding Account is not a bank account and does not have an ‘underlying bank statement’.
If bank type account is selected for both a Shopify holding account and bank account under "Xero Account for Payment Deposit ( Bank Account)" on 3rd tab of our app then our app will create a bank transfer.
In this case, the transactions in holding account will stay unreconciled. If you want then you can manually mark the entries as reconciled.
When current/clearing type of account is selected for Shopify Holding Account:
If current/clearing type of account is selected for Shopify holding account and the bank type account is selected for bank account under "Xero Account for Payment Deposit ( Bank Account)" on 3rd tab of our app then our app will create a bank transfer.
In this case, the Payments for the orders will be deposited individually in the account Shopify holding account. Few days later when you receive the payout from Shopify, our app will create a Journal entry which will account for the transfer to the bank account selected under "Xero Account for Payment Deposit ( Bank Account)".
Also, fees will be synced to the fees account selected under "Xero Account for Shopify Payment Fees" for the fees included in that payout.
In this case, the journal entry should auto reconcile with the entry from the bank feed. Our app will create payouts and bank transfers and you can click on a match/OK to reconcile them.