Understanding JE vs. Source Data Differences
It’s common to notice that the amount shown in a Journal Entry (JE) doesn’t exactly match the total from the source data (such as orders or payments). These differences typically reflect accounting design decisions or payment processor behavior.
Below are the three most common reasons:
⏱️ 1. Timing Differences
Source data (like orders) may be dated by the order date
JEs may be based on different timing, such as:
Fulfillment date
Payout/settlement date
Cancellation or refund date
Example: an order placed 3/31 but paid/settled on 4/1 will appear in an “orders” report for March but in a JE for April. That makes period totals shift even though every transaction is accounted for.
This can lead to totals shifting across accounting periods even if the underlying data is correct.
🧾 2. Scope and Aggregation Logic
JEs often summarize or group data, which can change totals compared to line-level views
Some data might be excluded from the JE on purpose, such as:
Complimentary or free items
Specific types of discounts
Non-revenue items or unmapped product types
This reflects your organization's accounting configuration—not a mismatch.
💳 3. Processor & Settlement Adjustments
JE amounts may differ due to payment processor behavior at settlement, including:
Fees (gateway or merchant fees)
Reserves or rolling holds
Chargebacks
Foreign exchange (FX) differences
Rounding adjustments
These factors can reduce or increase the final amount posted in the clearing or cash accounts.
✅ What to Do Next
If a JE doesn’t match the source data you expect, try these steps in order:
Compare using the same date rule — make sure the JE and the report use the same date (order date vs. settlement/paid date vs. refund date).
Compare gross→gross or net→net — confirm whether the report shows amounts before or after fees; compare like for like.
Filter by payment source — include/exclude Shop Installments, Shop Pay, manual payments, etc., the same way on both sides.
Check refunds/cancellations — ensure refunds are represented the same way (line item vs. netted).
Review JE template / mapping — confirm the JE was generated with the intended mapping and includes the expected transaction types.
Download transaction level data — pull the raw transaction rows (order/transaction ID, date, payment source, amount, type) and pivot by order/date to trace where differences come from.
Inspect clearing / suspense accounts — if an amount hit an “unknown clearing” account, investigate those entries.
If still unclear, gather evidence — export the JE, source report, and the raw transaction extract and reach out at [email protected].