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Understanding Sales from Payment Processors

Understand why you might see Sales - PayPal, or Sales - Stripe in your P&L

Rayla Rappaport avatar
Written by Rayla Rappaport
Updated over 2 months ago

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Normally in Finaloop, your sales in the Profit & Loss (P&L) statement are categorized by sales channel – like Shopify, Amazon, eBay, Etsy, or Walmart.

But sometimes, you may notice a sales line labeled with a payment processor, such as:

  • Sales - PayPal

  • Sales - Stripe

  • Sales - Afterpay

Let’s break down what this means and why you might be seeing it.

1. How sales are usually recorded in Finaloop

Finaloop uses a three-way reconciliation process to track your sales and payments flow:

  1. We sync your order data directly from your connected sales channels (like Shopify).
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  2. We detect the payment processor used for each order (e.g., PayPal, Stripe, Afterpay, etc.).
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  3. When we identify a payment from your payment processor, we automatically match and reconcile it with the order. As part of that, we create an Undeposited Funds balance for each payment processor, which sits on your Balance Sheet.
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  4. When the payout hits your bank account, we automatically match and reconcile it, reducing the Undeposited Funds for that payment processor and tying everything back to the correct orders and sales channel.

Pretty cool, right?

2. When sales are recorded under a payment processor instead

If you see sales recorded under a payment processor (e.g., “Sales - PayPal” instead of “Sales - Shopify”), it usually means one of the following:

  • We received a payment that couldn’t be matched to specific orders (yet)

This is often temporary. Sometimes payment data arrives before the matching order data. In this case, Finaloop automatically reclassifies the payments as a sale (e.g. “Sales - PayPal”). Then, once the matching order data arrives, Finaloop identifies it, matches it with the payment, and cancels the “Sales - PayPal” entry.

  • The sales came from a channel that isn’t connected to Finaloop

For example, if you accept PayPal payments through BigCommerce (and BigCommerce isn’t connected to Finaloop), we don’t have the order data - but we still record the sales from the PayPal payment. This ensures your total sales are fully captured and nothing is missed.

Have questions?

If you're unsure about a specific transaction or want help connecting additional sales channels, our support team is here to help-just reach out!

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