Create a separate bill for Shopify Collective debits

Shopify Collective debits can be posted to Xero as a separate bill. This records the debit as an expense in Xero rather than leaving it buried in the payout summary.

How it works

When Shopify Collective deducts an amount from your payout, the app creates a bill in Xero for that debit. The bill is created separately from the sales invoice, keeping the supplier cost distinct from your sales and making the payout easier to reconcile in Xero.

If Shopify provides tax information for the debit, the app can also apply a tax type to the bill line. This requires a Xero tax type to be selected in the app settings.

What you need before you start

• An expense account in Xero for Shopify Collective debits — usually a cost of goods sold account or another expense account that suits how you want these costs reported
• A Xero tax type to use when Shopify provides tax data for the debit (optional)

How to enable it

This feature is enabled by the Hyve support team. Contact support at help@hyvelabs.co and include:

• Your Shopify store URL
• The Xero expense account you want used for the bill
• The Xero tax type to apply when Shopify provides tax data (optional)

Once configured, Shopify Collective debits will be posted to Xero as separate bills.

How the bill is created

Each Shopify Collective debit in a payout is posted as a bill using the expense account selected for your store. If tax is present in the Shopify data, the selected Xero tax type is applied to the bill line. If no tax is present, the bill is created without tax — the app cannot apply tax that Shopify has not provided.

Example

A payout includes sales, fees, and a Shopify Collective debit. The sales post as normal. The Collective debit posts as a separate bill to your selected expense account, with the configured tax type applied if Shopify includes tax on that debit. This gives you a clear expense line in Xero rather than the cost being combined into the payout movement.

Recommended setup

• Use a dedicated expense account if you want Collective debits reported separately from standard COGS
• If the debits represent product cost, a cost of goods sold account is usually the best option
• If you are unsure which account or tax type to use, check with your accountant