Setup Payouts

As you receive payments for orders in Shopify, you’ll need to configure how those payments are posted in Xero for each payment gateway.

To do this, click the Add payment gateway button on the Setup – Payouts screen.

Step-by-Step Walkthrough to Set Up Your Payment Gateway

1. Select payment method

Select the payment method your orders will use.

If the payment method you are looking for is not in the list, you will first need to create an order using that payment method in your Shopify admin Orders screen.

Once created, post that order to Xero using the Orders Dashboard. Select the order by clicking the checkbox, then click Post to Xero.

After this is done, return to the Setup – Payouts screen. The missing payment method will now be available for configuration.

2. Select Xero Bank Account

This bank account is where payouts and any relevant payment gateway fees will be posted.

3. Select Xero Clearing Account

If payouts are deposited as a lump sum over a period of time (for example, daily, weekly, or monthly) rather than per individual order, we strongly recommend configuring a clearing account.

• Examples where a clearing account is recommended:
  • Using Shopify Payments, where payouts are received as a lump sum based on the payout period (even if paid daily, multiple orders may be included).
  • Using EFTPOS where payouts are received as a lump sum.

• Examples where a clearing account may not be required:
  • Using PayPal where your PayPal account is connected to Xero as a bank feed which provides individual order payouts.
  • Using EFTPOS where individual payouts are received.

If you have already created a clearing account in Xero, ensure “Enable Payments to this account” is checked in the Xero Chart of Accounts.

If it has not been created yet, you can create one directly from this screen.

You can read more about clearing accounts here.

4. Select Payment Gateway Supplier Name

The payment gateway supplier name is used by the app as the contact name when creating fee bills in Xero.

We recommend selecting or creating a supplier name that closely matches the payment gateway you are configuring.

You can type in this field to search for an existing supplier or create a new one.

• Fix for possible issue:
  • If you cannot find the contact name in the list, open the contact in Xero and trigger an update by adding and then removing a character.
  • This is a Xero limitation where only recently updated contacts are shown.

5. Enter Payment Gateway Fees

Enter the payment gateway fee for orders that use this payment method.

If the payment method charges fees per order, enter the percentage and/or flat rate charged. You will need to confirm the exact fee rates charged by your payment provider.

6. Enter POS Gateway Fee

Check whether Shopify automatically calculates your POS gateway fee by reviewing the Shopify pricing page for your plan.

7. Select Xero Fee Account and Tax Rate

Select the Xero expense account where payment gateway fees will be posted, along with the default tax rate to apply to those fees.

8. Configure Payment and Fee Posting (Optional)

Choose whether payments and/or fees should be automatically generated for orders processed through this payment gateway. You do not need to configure this unless you plan to manually create payments and fee bills in Xero.

These settings are intended for users who have already configured their payment gateway but have changed their workflow and now wish to manage payments and/or fees manually. You can disable automatic posting by unchecking the relevant options.

9. Save your payment gateway

Once you have finished configuring the payment gateway, click Add.

You can then click Save at the bottom right of the screen or use the save bar at the top of the page to save your changes.

Payment Gateway Configuration Fields