Create a Product in QBO for Mapping Shipping Fees from Shopify

The following outlines how to create a product in QuickBooks Online (QBO) for mapping Shipping Fees from Shopify. This product will appear in the Shipping Line Item dropdown list in the Sales & Deposits section of your Shopify Store Connections screen (see the example below).

Click Map Shipping Fees from Shopify to QBO and learn more about why this is necessary.

This Shipping Line Item product needs to be added to QBO prior to connecting your QuickBooks Company to weintegrate, however if you did not, you can disconnect your QBO Company, create the product, and reconnect your QBO Company (click Manage Your QuickBooks Online Connection to learn more).

To create this new Product in QBO, hover your mouse over the Sales menu option to the left, and click on Products and services from the subsequent expansion list.

To add a new product, click the green New button to the top right of this Products and Services screen and select to create a Service type item (note only Service items will appear on the dropdown list in weintegrate).

QBO-new-product

When the new product entry screen appears, you may enter any name for the product you feel makes sense to your business. Note that the Shipping Line Item product mapping in weintegrate is by each Shopify Connection, so if you have multiple Shopify stores and you would like to track Shipping Fees in QBO by each store, you can create multiple Shipping Fee products in QBO based on this section.

It is important to set the Income Account to the Shipping Income account that is available in your Chart of Accounts (see Setting Up QuickBooks Online Chart of Account Before Connecting to We Integrate for more about creating Other Current Liabilities for Gift Cards).

You can leave the Sales Price at $0.00 as the price will vary based on actual shipping fees from your Shopify store on a per Sales Receipt basis.

You should leave this Shipping Fee Item as taxable even when you don’t charge tax on shipping fees. When there is no tax associated with shipping fees of a Shopify sale, weintegrate will automatically uncheck the tax box for the Shipping Fee Line Item to reflect that no tax is being charged.

If you need to manage the costs of shipping in addition to the income, you can click to continue at the bottom in QBO. Next, click the checkbox indicating that you purchase the product/service from a vendor, and select the appropriate Expense Account.

Note that weintegrate does not update the Shipping Costs. You will manage this upon receiving the invoices from your carriers/shipping partners.

Learn more about mapping Shopify Shipping Fees to your newly created QBO Shipping Fee Product: