Why Aren't My Reports Matching Shopify? - Part 2

Why Aren't My Reports Matching Shopify? - Part 2

As covered in our previous article, so long as you're looking at comparable data, our reports should generally match the exact information that is presented in Shopify. 

However, one situation where a known discrepancy can occur is when you look at stores that have the "All prices include tax" option selected in Shopify AND have percentage-based discounts applied to orders.

To explain this a little further, this is caused by the fact that Shopify essentially has 2 ways in which a discount can be calculated when the product's price includes tax, depending on whether this is for the Sales Report or the Orders page. 

Stick with me - because this can get a little complicated! But we promise we'll make it simple at the end. 


Example - A dress with a Total price of $100.00 (incl. 10% Tax Rate) and a 25% Discount.

1.) Sales Report Calculation  

In this report, Shopify deducts the Taxes first and then applies the Discount.

  1. Total Price ($100) / (1+Tax Rate (0.10) = Price to Discount ($90.90)
  2. Price to Discount ($90.90) x Discount Percentage (0.25) = Discount Amount ($22.72)
  3. Price to Discount ($90.90) - Discount Amount ($22.72) = Discounted Price ($68.18) 
  4. Discounted Price = Taxable Price
  5. Taxable Price ($68.18) x Tax Rate (0.10) = Tax ($6.81) 

2.) Orders Page/Orders .CSV Export Calculation.  

In contrast, on the Shopify Orders page (and the subsequent Orders .CSV Export) the Discount is applied first and then the Taxes are deducted. 

  1. Total Price ($100) x Discount Percentage (0.25) = Discount Amount ($25). 
  2. Total Price = Price to Discount.
  3. Price to Discount ($100) - Discount Amount ($25) = Discounted Price = ($75)
  4. Discounted Price ($75) / (1+Tax Rate (0.10)) = Taxable Price ($68.18)
  5. Taxable Price ($68.18) x Tax Rate (0.10) = Tax ($6.81)

Honestly, it's much easier if you can see these numbers side-by-side in a table so you can see how they compare: 

undefined

As you can see, in Method 1, the Tax is removed (blue), and then Discount % is applied to give us the Discounted Price (red). In Method 2, the Discount is applied first (to red) and then the taxes are applied to this amount (blue)  

Note that in either case, only the items in bold have different values, so the most important numbers in either report remain the same - the order totals (Total Price/Total Sales), Discount %, Tax Rate and Tax Amount.

In other words, it is only the Discount Amount, Discounted Price, and Gross Sales that will be different.


Basically, if this all makes your head spin, what you really need to know is - 
  1. For the Sales report, Shopify deducts the Tax first and then applies the Discount %. 
  2. For the Orders report, Shopify applies the Discount % first and then deducts the Tax.
In Shopify, there is no way (currently) to reconcile the Discount Amounts across the Sales report and Orders. Therefore, merchants should choose between the Sales Report or Order Export CSV report for bookkeeping purposes. 

And remember, again - this only applies to stores that have taxes included in the product prices when applying percentage discounts.

So How Does This Apply to Report Toaster? 

It is this method used on the Orders page (#2 above) that is provided to third-party apps (like Report Toaster), to generate order reports. 
So if you want to compare the numbers in Report Toaster to those reported in Shopify, make sure you compare the numbers with those on the Shopify Orders page, rather than those represented in the Shopify Sales Report.  

We Are Here to Help!

If you still think there are discrepancies between Shopify's data and what you are seeing in Report Toaster, please let us know. Get in touch using the live chat in the app and let us help troubleshoot. As we can't see your Shopify admin, please provide screenshots of the financial summary, and be ready to provide a day-by-day breakdown so we can see exactly where the numbers don't match. 

    • Related Articles

    • Why Aren't My Reports Matching Shopify? - Part 1

      We often get questions about Report Toaster reports not matching numbers seen in Shopify. As you might expect, our reports should match Shopify exactly when comparing compatible data. Below are some tips for troubleshooting data that seems to be ...
    • Frequently Asked Questions (FAQ)

      The following is a set of Frequently Asked Questions from users of Report Toaster. What is Report Toaster? Report Toaster, created by Cloudlab™, is the most powerful reporting app available for Shopify merchants. How do I start using Report Toaster? ...
    • What Do I Get In Report Toaster (that I don't get in Shopify?)

      What do I get out of Report Toaster that I don't get in Shopify?  I already get reports in Shopify - why do I need Report Toaster? Which new data fields do you have? In fact, questions like this are so commonplace that we have an entire series ...
    • Product Cost and Profit Reports

      Report Toaster has introduced Product Cost into our dataset, which allows us to calculate gross profit. Shopify allows product cost, or cost of goods sold (COGS), to be tracked at the product SKU or variant level. See this article for instructions on ...
    • How Do You Calculate Values on Sales Reports?

      We understand the importance of reliability and consistency in financial reporting. So we designed the Report Toaster app to use the same calculations as Shopify. See below for an excerpt from this Shopify article defining their report formulas. If ...

     Suggestion Box

    Didn't find what you were looking for in our knowledge base? Click here to suggest an article, and we'll try to put something together for you.