Automatic Support for Shopify's Fulfillment-Based Payment Capture
What's Changing
We're excited to announce enhanced support for Shopify's Capture at Fulfillment and Capture per Fulfillment payment methods in our journal entry system.
This is simply a merging of the current Orders and Revenue Recognition Journal Entries into one - at the time of fulfillment.
Previously:
When using Shopify's fulfillment-based payment capture, your financial data was split across two journal entries:
Orders Journal Entry: Recording deferred revenue at order creation
Revenue Recognition Journal Entry: Recording actual revenue when recognized and a reversal of deferred revenue
Now:
If you use Shopify's Capture at Fulfillment or Capture per Fulfillment payment methods, you'll see a new consolidated "Revenue Recognition - Capture at Fulfillment" journal entry that:
Accurately records revenue directly at the time of fulfillment (when payment is actually captured)
Eliminates unnecessary deferred revenue for these transactions
Provides a single, comprehensive view of your fulfillment-based revenue
Automatic Detection - No Action Required
The best part? You don't need to do anything.
Our system will automatically detect which orders use Capture at Fulfillment or Capture per Fulfillment payment terms by analyzing the payment_terms_type field from Shopify. When we detect these payment methods, your journal entries will automatically use the new format.
For any orders using standard payment capture methods, your journal entries will continue to work exactly as they do today.
Why This Matters
This enhancement is especially valuable if you:
Use Shopify's Capture at Fulfillment or Capture per Fulfillment payment options
Need accurate financial reporting that aligns with when you actually collect customer payments
Want to eliminate discrepancies between when orders appear in your financials and when payments are processed
Why Blue Onion Is Uniquely Positioned to Make This Change
Blue Onion has built a deep integration with Shopify that gives us unique capabilities:
Direct Access to Payment Term Data: Our platform pulls in the exact
payment_terms_typefield directly from Shopify, allowing us to precisely identify which orders use fulfillment-based payment capture.Flexible Journal Entry System: Our existing architecture was designed with adaptability in mind, allowing us to create this consolidated journal entry without disrupting your existing workflows.
Complete Data Pipeline: We capture all the necessary data points - from order creation through fulfillment and payment capture - giving us the full picture needed to accurately represent these transactions.
Benefits You'll See
More Accurate Financial Reporting
Journal entries now reflect the true timing of liabilities for fulfillment-based payments
Your financials will better represent when you actually collect customer payments
Improved Accounts Receivable records that align with actual payment capture events
Simplified Accounting
One comprehensive journal entry instead of two separate entries
Direct mapping of revenue recognition to fulfillment events
Cleaner Cash in Transit reporting
Better Alignment with Accounting Principles
Follows the accounting principle that no liability exists before collecting customer payment
More accurately represents the financial impact of fulfillment-based payment capture
FAQs
Q: Will I lose access to my historical data?
A: No, all your historical data remains accessible. But this new format will apply retroactively as well.
Q: Do I need to update my accounting processes?
A: No changes are required on your end. The new journal entry format simply provides a more accurate representation of your financial data. You will need to add GL mappings, if desired.
Q: How does this affect my ERP Subledger integration?
A: If you use our ERP Subledger integration, the new journal entry format will be seamlessly pushed to your ERP system, providing more accurate financial data without requiring any changes to your setup. Reach out to the team if you need help with GL Account Mapping.
Q: How can I identify which orders are using Capture at Fulfillment?
A: You don't need to - our system automatically identifies these orders based on the payment terms type from Shopify and applies the appropriate journal entry format.
If you have any questions about this enhancement, please reach out to our support team via the chat.