Calculating Fees on Payment Gateways

Payment gateway fees can be calculated automatically per order and posted to a specific fee account for that gateway.

By default, Shopify Payments gateway fees are provided to us by Shopify so that doesn't need to be set up.

Separately, Shopify POS fees are provided depending on the region. You can enter them into the Shopify Payments screen but the app will take what Shopify provides as precedent if it exists.

Steps

To set up the fee amounts and percentages, you will need to go to the "Setup - Payouts" page.
You will then need to select the payment gateway or add a new payment gateway if the payment gateway doesn't already exist.
Once in the Add or Edit Payment Gateway Mapping pop-up modal, you would then add:
1. Payment Gateway Fee percentage (%) and/or dollar amount ($).
2. The relevant Xero fee account you would like to post the fees to.
3. The tax type of the fees, whether the amount charged by the payment provider is tax inclusive or exclusive. If you're unsure about this, double check with the payment provider or refer to your payment gateway statement.
Hit Save when done.
On the main "Setup - Payouts" screen, you will need to hit Save as well.
Whenever orders with that payment gateway are posted to Xero, a bill will get created with the payment gateway fees.

Note: These fees are payment provider gateway charges. If you're using an external payment gateway separate to Shopify or Paypal, Shopify charges an additional fee that can range between 1-2% depending on your region. This fee appears in your monthly Shopify bill and is not part of this calculation given it's a separate charge by Shopify and not the payment gateway provider.