Shopify Collective in Summary Sync

Overview

What is Shopify Collective?

Shopify Collective is a platform that allows merchants to sell each other’s products — without purchasing additional inventory.

In Shopify payouts, Shopify Collective transactions typically appear as:

• Shopify Collective Credit – When a third party sells your product, Shopify pays you, and the payout description shows Shopify Collective Credit.

• Shopify Collective Debit – When you sell a third party’s product, Shopify charges you, and the payout description shows Shopify Collective Debit.

How Summary Sync Works

• A single summary Journal Entry is created in QuickBooks for each Shopify payout.

• Shopify includes Shopify Collective transactions within the payout.

Account Mapping for Shopify Collective Transactions

The following applies to the Journal Entry synced by our app in QuickBooks for each Shopify payout:

Shopify Collective Credit

Shopify Collective Credit represents revenue. Therefore, it is recorded in the Shopify Sales account configured in the app settings.

Since this is treated as standard sales revenue:

• No separate account mapping is required.

• There is no separate mapping option needed for Shopify Collective Credit within the Summary Sync option.

• For orders where Shopify provides a Collective Credit in the payout, the revenue is recorded in the Shopify Sales account configured in the app settings. Since Shopify includes these amounts as part of the overall sales revenue in the payout settlement, the order amount is included within the settlement in the journal entry.

Shopify Collective Debit

During app setup, you will have the option to map a specific account for Shopify Collective Debit. 

The debit amount will be recorded in the account you select in the app settings.