Mapping Loop and Other Shopify Returns-App Activity
Returns apps such as Loop Returns & Exchanges, Redo, AfterShip Returns, ReturnGO, Refundid and Corso handle much of a store's return work: they deduct handling fees, issue store credit and process exchanges. Shopify records each of these as a return adjustment made by the app, and its Finances Summary reports the adjustment under Returns, named for the app.
Bookkeep records it the same way. Every Shopify journal entry shows the app's activity as its own subcategory under Returns, so you can see exactly what the returns app did on any day and decide how it belongs in your books.
Why returns-app subcategories matter for your close
A generic "Order Adjustment" line leaves you guessing: was it a fee the store kept, store credit owed to a customer, or an exchange? When the subcategory carries the app's name, you can:
- Tie Returns to Shopify's Finances Summary line by line.
- See how much return activity runs through the app, separately from refunds staff issue in the Shopify admin.
- Map the app's activity to the account that fits your client's books. That can be income, a liability or a clearing account, set per app.
Refunds issued through Shopify's own tools (the admin, Point of Sale, Draft Orders) keep their usual labels, so routine refunds add no clutter. Your totals don't change: the Returns line still adds up to the same amount.
Where returns-app subcategories appear
| Entry | Where the app appears |
|---|---|
| Shopify Sales Summary (document numbers starting BKShopSum or BKShopify) | A subcategory under Returns, named for the app |
| Fulfillment Revenue Recognition | A subcategory under Returns, named for the app |
| Source data attachments | A Subcategory column, so each row ties back to the line it posted under |
Choosing a mapping for a returns app
The first entry that includes a returns app adds its subcategory to your mapping, ready for you to map. Until you do, its amount stays in your Returns account, so nothing is misposted while you decide.
Each app gets one subcategory, so map it according to what the app mostly does for your store:
| What the app mostly does | What you see in Shopify | A mapping that fits |
|---|---|---|
| Charges return or handling fees | The customer's refund is a little less than the returned value | Leave it in Returns, or map it to a return fee income account |
| Issues store credit | The returned value goes to a gift card instead of the customer's card | The same gift card liability account you use for the Gift Cards line, so the credit and its later redemption net against each other |
| Processes exchanges | The returned value is applied to a replacement order, with no refund | Leave it in Returns, where it offsets the replacement, or map it to a contra-revenue account such as "Returns – Exchanges" |
| A mix of the above, or not sure yet | Leave it in Returns, or use a clearing account (below) |
Bookkeep lets you map the Returns line to income, asset and liability accounts on every Shopify entry, so each of these is available.
Example: mapping a returns-app handling fee
A customer returns $350 of merchandise. The returns app deducts an $8 handling fee, and $342 goes back to the customer's card through Shopify Payments.
Left in Returns (the default):
| Account | Debit | Credit |
|---|---|---|
| Returns | $342.00 | |
| Shopify Payments Balance | $342.00 |
Mapped to a return fee income account:
| Account | Debit | Credit |
|---|---|---|
| Returns | $350.00 | |
| Return Fee Income | $8.00 | |
| Shopify Payments Balance | $342.00 |
Either way, the Shopify Payments side matches the refund that left the payout. The second version also shows the full returned value and the fee the store earned.
Optional: a returns-app clearing account to tie out to the app's reports
When an app does a mix of fees, store credit and exchanges, some bookkeepers park all of its activity in a clearing account, for example Loop Returns Clearing (a current asset account), and sort it out each month.
- Map the app's subcategory to the clearing account.
- Each month, compare the balance with the app's own reports, such as Loop's return totals and handling-fee reports, to split it into fees, store credit and exchanges.
- Post one reclassifying entry to move each part to its final home: fee income, gift card liability or Returns.
The balance clears only when you post that reclassifying entry. Nothing in Shopify offsets it automatically. For more on working with clearing accounts, see Why Is a Clearing Account Beneficial? and Clearing Account Reconciliation Frequency.
Loop collects some amounts outside Shopify, such as exchange upsells and handling fees on exchanges, through the merchant's own Stripe account. Those never appear in Shopify, so they won't be on your Bookkeep entries. Record them from your Stripe payouts. If you use a clearing account, it's a convenient place to match them against Loop's reports too.
Setting up the mapping in Bookkeep
- Decide on the treatment from the table above. If you need a new account (fee income or clearing), create it in your accounting platform: QuickBooks Online, Xero, NetSuite, Sage Intacct, Zoho Books or Intuit Enterprise Suite.
- In Bookkeep, open the Shopify connection's mapping (Connections → Setup → Map) and find the app's subcategory under Returns.
- Map it to your account and save.
- Future entries use the new mapping. To apply it to days already posted, repost them.
If a store uses more than one returns app, each appears as its own subcategory and can be mapped separately.