Taxomate supports payment gateways and payment processors on Shopify. PayPal is on by default. You can turn on others yourself: go to Settings > Connections, select Shopify, then Manage gateways (see "How do I enable Shopify payment gateways?"). Payment gateways have their own payouts in Taxomate, like the payout imported for Shopify Payments.
Taxomate cannot split out the fees charged by your payment gateway, because the gateway takes the fees out before the money reaches your bank account. Since we cannot see this fee, we use a clearing account.
Payment gateway payouts include sales, fees, and taxes like other payouts. They also include an offset line item for the payment gateway, which is sent to the clearing account. Allocate the bank deposits you receive from the payment gateway to that clearing account.
The clearing account goes up with each allocation of the bank deposit and goes down with the Shopify payouts.
👉 Note: Because the payment gateway takes these fees out of the deposits and Taxomate cannot know the amount, you will likely have a small balance in the clearing account. To account for these fees you need to make a manual entry or invoice.
👉 Note: We recommend creating a different clearing account for each payment gateway. This makes it easier to reconcile against each payment provider's monthly statement.
Reconciling gateway payment clearing accounts
STEP 1. Send the payment gateway payout from Taxomate to your accounting system.
STEP 2. Categorize the gateway deposits in QuickBooks or Xero to the right clearing account.
STEP 3. Record by hand any processing or other fees from the payment gateway that are not accounted for.