How do I manage Shopify deposit payments to avoid double-counting sales income?
I have successfully integrated my Shopify eCommerce sales with my Quickbooks system.
1) My Shopify sales have been selected to "deposit to Shopify Holding" - is this correct treatment? See attached image QBS1
2) How should I then manage the payments that I then receive from Shopify?
a. It is currently set to deposit to BankAccoun1 (this is where it is received)
b. Is is currently being classed as "Sales of Product Income"
c. VAT is also classed at 20%S
See attached image QBS3
What I think I need to do is offset the Shopify holding account transactions previously made.
3. The effect of the above two is that the VAT report seems to be double counting both the true sales income (shopify sales) and also the deposits from Shopify which I don't want to count as income (see attached image QBS2) Instead I want to reduce accordingly the Shopify holding account balance.
How do I do this?