TikTok Shop (TTS) can be used as a separate sales channel or it can be synced to another sales channel, like Shopify, so you can centralize your orders, inventory, and sales in one place.
You can read more about how TTS fees work and how/ if to sync it to Shopify here.
Since TTS is a very new channel, our direct integration to sync TTS to Finaloop is not yet live. In the meantime, we have a few methods you can choose from to ensure you have 100% accurate and reliable data in your books.
We'll cover the different options below:
Scenario 1: How Finaloop syncs TikTok Shop data when it's not connected to Shopify
If your TTS is not connected to Shopify, we'll recognize your TTS sales based on the Bank Transactions by categorizing the net TTS payouts into sales without the breakdown of the expenses, i.e. on a net basis. The net impact on the P&L report is the same so it is up-to-date, 100% accurate, and ready for taxes.
If you selected sales-based COGS in Finaloop: TTS-related COGS have to be added manually per sales channel (most common) or per SKU/product.
Per Sales Channel:
Click on Inventory
Click on COGS at the top of the screen
Click on Report per channel
Fill in the COGS in the report (see screenshot below).
Per SKU/Product:
Go to your Products page.
Click on the product that was sold on TTS then on "+ Add to COGS"
Select "Sales channel."
Click the drop down box and select the relevant sales channel.
Then click on edit (the pencil icon) and fill in the table with the units fulfilled and restocked via TikTok.
Once you add it, we'll calculate your COGS based on the quantity you added X cost per unit for the product.
Scenario 2: TikTok Shop Is Connected to Shopify
Many brands connect TikTok Shop to Shopify using the native Shopify TikTok Shop connector or using a 3rd party connector like Silk for TikTok, Aftership, or ShoppeDance.
When TikTok Shop is connected to Shopify, Finaloop can record your sales in one of two ways:
1) Bank Payouts (Default)
Unless requested otherwise, Finaloop will recognize your TTS sales based on the Bank Transactions by categorizing the net TTS payouts into sales without the breakdown of the expenses, i.e. on a net basis. The net impact on the P&L report is the same so it is up-to-date, 100% accurate, and ready for taxes.
In this case, when Finaloop syncs your Shopify orders, we will exclude the orders coming from TTS to ensure there will be no overinflation / double counting of sales.
(See the excluded status in the screenshot below).
Why do we exclude your TTS sales coming through the TTS Shopify connector? In our experience many of these connectors often result in irreconcilable sales data since they often do not include discounts applied by TTS that are not shown until the payout amount is increased by these discounts that TTS owes you.
If you selected Sales-based COGS in Finaloop: Since, under this method, we exclude the sales data from these connectors, by default we also exclude the COGS from syncing automatically from Shopify. Instead, the TTS-related COGS have to be added manually per SKU/product or sales channel.
Per Sales Channel:
Click on Inventory
Click on COGS at the top of the screen
Click on Report per channel
Fill in the COGS in the report (see screenshot below).
Per SKU/Product:
Go to your Products page.
Click on the product that was sold on TTS then on "+ Add to COGS"
Select "Sales channel."
Click the drop down box and select the relevant sales channel.
Then click on edit (the pencil icon) and fill in the table with the units fulfilled and restocked via TikTok.
Once you add it, we'll calculate your COGS based on the quantity you added X cost per unit for the product.
2) Sync TTS Orders from Shopify
You can choose to sync your TTS sales data from Shopify for each order that comes in to Shopify through the TTS connector.
In this case, your TikTok Shop sales will appear in your P&L as ‘Sales - TikTok (via Shopify)’. The same applies for your discounts and shipping income.
Below is an example of TTS order data connected through AfterShip Feed for TikTok Shop where you can see the status is not 'Excluded.'
Referral and other fees paid to TikTok are also calculated periodically and included in your books as well based on the difference between your net orders and your actual bank payouts from TikTok.
With respect to COGS, if you selected sales-based as your COGS method, Finaloop will also calculate your real-time COGS automatically for each order using the landed cost per unit from Shopify (or from data you entered directly into Finaloop’s accounting platform).
If you wish to sync your TTS orders from Shopify, please update us after having a Shopify-TikTok integration set up, and we'll make sure the relevant data is imported from Shopify (it's not imported by default). If you haven't yet set up a TTS Shopify connector, send us a message and we're happy to help you pick one that syncs well with Finaloop.