Reconciliation of the orders from payment methods other than Shopify and PayPal

Our app only receives payout of Shopify payment method orders. Our app also receives the fees of Shopify and Paypal payment methods. So orders paid using any other payment methods other than Shopify and PayPal need to be reconciled manually.

Our app allows orders paid using other payment methods than Shopify and Paypal to be synced to a separate account. You can select an account on 4th tab of our app in which you are receiving the actual payout of the other payment method in Xero.

There are two approaches for reconciliation of other payment method orders. Both of these approaches works well. However, it depends on accountant or bookkeeper by which approach they handle it. Both of these approaches are to be handled manually. 

1. If you are using the Afterpay payment method and actual payout of Afterpay is received in account "Afterpay" in Xero then you should select "Afterpay" account on 4th tab of our app for "Xero Account for Afterpay payment method".

Once the orders are synced to Xero by our app and payout is received in Xero directly, you can "Find and Match" the entry in Xero to reconcile under that account. You need to create the manual entry in Xero for fees deducted by Afterpay.

2. If you do not select the account in which you are receiving the actual payout and just select any clearing account then you will need to create the bank transfer entry from that clearing account to bank account to reconcile. The clearing account should be a current asset type account.

For example, there is a balance of $500 in the Afterpay account and then you have received the $300 payout so you can create the bank transfer entry from that clearing account to bank account and reconcile the orders. There will be a balance of $200 in Afterpay account. You will always have some balance which shows in your account but is not actually available to you until you receive the payout and create the transfer entry.

You need to create the manual entry in Xero for fees deducted by Afterpay.