Skip to main content

Per-Fulfillment Revenue Recognition for Shopify

Bookkeep now offers Per-Fulfillment Revenue Recognition for Shopify, giving merchants greater flexibility in how and when revenue is recognized.

This new feature allows revenue to be recognized as individual fulfillments are completed, rather than waiting for the entire order to reach a Fulfilled status.

How It Works​

Previous (Order-Based) Method​

Under the traditional order-based model:

  • Revenue is not recognized until the entire order reaches a status of Fulfilled

  • Partial shipments do not trigger partial revenue recognition

  • All line items are recognized together once the order is fully fulfilled

This approach works well for businesses that only want revenue recognized once the full order lifecycle is complete.

New: Per-Fulfillment Revenue Recognition​

With this new feature enabled:

  • Revenue is recognized each time a fulfillment is completed

  • Only the line items included in that specific fulfillment are recognized

  • Revenue is recorded incrementally as shipments occur

Example:​

If an order contains 5 items and:

  • 2 items are fulfilled today

  • 3 items are fulfilled next week

Revenue will be recognized in two stages, aligned with the actual fulfillment timing.

Handling Cancellations and Returns​

Under this new flow:

  • If a fulfillment that was previously recognized is cancelled

  • Or if fulfilled items are returned

The reversal occurs independently of the overall order’s fulfillment status.

This ensures revenue and reversals are accurately aligned with operational activity — not just order status.

Non-Physical Items​

Items not tied to a specific fulfillment (such as digital goods or shipping income) will continue to be recognized when the order reaches Fulfilled status.

This maintains appropriate handling for products that do not follow a physical fulfillment workflow.

How to Enable Per-Fulfillment Recognition​

This feature is managed from the My Apps tab on the Connections page.

  1. Locate the Shopify fulfillment revenue recognition journal entry.

  2. Click Map on the right. This will open a modal window.

  3. At the top of the modal, you’ll see Recognition Method with two options:

    • Order Level – Recognizes all revenue once the order reaches Fulfilled status.

    • Fulfillment Level – Recognizes revenue as each fulfillment is created. Any remaining items not tied to a fulfillment are recognized when the order reaches Fulfilled status.

Select the method that best aligns with your accounting preferences and save your changes.

Why Use Per-Fulfillment Recognition?​

Per-fulfillment recognition may be beneficial if:

  • You ship orders in multiple batches

  • You operate across multiple warehouses

  • You want revenue timing aligned with shipment activity

  • You need more precise matching of revenue and cost of goods sold

  • You want operational and financial reporting aligned in real time

Flexible Revenue Recognition for Growing Shopify Businesses​

Bookkeep’s new per-fulfillment recognition option gives Shopify merchants the flexibility to:

  • Recognize revenue as it is earned

  • Improve financial accuracy for partial shipments

  • Maintain proper handling of cancellations and returns

  • Adapt revenue workflows without requiring custom development

By choosing the recognition method that best fits your business, you can ensure your accounting reflects how your operations truly function.