1. About
Shopify bills are consolidated and include expenditure from multiple categories. For example one bill might include:
transaction / selling fees
shipping labels
app/subscription payments
This article explains:
why Finaloop categorizes Shopify bills as ‘Software & subscription’ and
how to break down a consolidated Shopify bill into multiple items and apply the correct category to each one. This will fine-tune your P&L allocating amounts to the relevant categories.
2. What’s the issue?
The Shopify integration API does not provide a line by line item of bills. This means that Finaloop can’t receive a breakdown of the items in the bill, which in turn means that we cannot allocate the bill to more than one category.
Hopefully, Shopify will develop this feature, but for now Shopify bills are automatically categorized into the Software & subscription category in your P&L. We use this category, because it’s the most frequently used category for Shopify bills.
If you would like a more granular breakdown of these bills into the specific categories, you also have the option of splitting your Shopify bills manually into separate transactions, each associated with the correct category.
3. Split Shopify bills into different categories
> To split a transaction and assign a different category:
Navigate to the Transactions screen.
Locate one Shopify bill transaction with the category Software & subscriptions and click the row to open the Categorize Transaction pane.
Click Split - a new pane opens.
To assign the correct category to this amount and category, click the bin icon (#1) next to the value and click Add Category (#2).
Enter the value of the first split and assign a category.
Repeat steps 3- 5 for each split.
When the consolidated amount has been split into the correct amounts and categories, click Save. You can only click Save when all amounts add up to the total transaction amount.
4. When to use ‘Apply once’ and ‘Apply always’
Apply once
Apply once
If each bill has different breakdowns, and you want this granular visibility throughout the year, click Apply once when:
you don’t need to split a consolidated bill during the year or
the majority of the bill belongs to a single category
Apply always
Apply always
Click Apply always to assign all similar transactions from Shopify to the category you’ve just selected.
TIP: When you use Apply always, you can assign the most relevant category and do the splits as part of year-end adjustments. This can be a time-saver, without it making a big difference in your P&L reports throughout the year. P&L expense totals will always be accurate, even if there is some reapportionment into different categories at year end.