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TikTok Payment Processor Integration Overview

TikTok is integrated as a payment processor to help merchants clearly track payouts, fees, and sales tax. The integration simplifies TikTok’s complex reports, improves reconciliation accuracy, and provides detailed transaction visibility.

Na Koo avatar
Written by Na Koo
Updated over 2 weeks ago

What is the TikTok Integration?

The TikTok integration is designed to simplify how merchants manage, track, and reconcile TikTok Shop transactions across their broader commerce and accounting workflows. In its current form, TikTok is integrated as a payment processor, not a full order system. This approach brings in TikTok settlement data, aligns it with existing order systems, and offers new tools for financial clarity and operational efficiency.


Key Benefits

  • Normalizes TikTok's complex reporting
    The system parses TikTok's dense settlement reports — including non-standard IDs and numerous fee types — into a clear, structured view.

  • Breaks down multiple payment components per order
    Includes support for gross sales, platform fees, commissions, tax remittance, and more.


Payment Types TikTok Supports

TikTok Shop transactions often contain multiple financial components, similar to platforms like Amazon Seller or Global E. The integration classifies and tracks each of these:

  1. Sale Items – Gross sales plus any applied discounts

  2. Remitted Sales Tax – Collected and remitted by TikTok on your behalf

  3. Advertising Fees – Platform fees for TikTok’s marketing services

  4. Commission Fees – Payments to influencers or affiliate sellers

  5. Merchant Processing Fees – TikTok’s standard payment processing charges

Each type is captured and categorized for reporting, reconciliation, and accounting purposes.

TikTok Payment Field Mapping

To help clarify how TikTok’s settlement fields are handled in our system, here's how the platform's specific fields map to our internal payment types:

TikTok Name Fields (Settlement Report)

Blue Onion Payment Type

gross_sales, seller_discount

Sale

gross_sales_refund, seller_discount_refund

Refund

transaction_fee, referral_fee, refund_administration_fee

Merchant Processing Fee

affiliate_commission, platform_commission, cofunded_creator_bonus, affiliate_partner_commission, affiliate_commission_deposit, affiliate_commission_release

Commission

affiliate_ads_commission, tap_shop_ads_commission, cofunded_promotion_fee, flash_sales_service_fee

Advertising Fee

tax_sales, supp_sales_tax, sales_tax_payment

Remitted Sales Tax

tax_vat

VAT Remitted

tax_gst

GST Remitted

customer_paid_shipping_fee, customer_paid_shipping_fee_refund

Shipping

actual_shipping_fee
shipping_fee_discount
shipping_insurance_fee signature_confirmation_fee return_shipping_fee free_return_subsidy
fbt_fulfillment_fee fbt_fulfillment_fee_reimbursement shipping_fee_subsidy
customer_shipping_fee_offset promo_shipping_incentive promo_shipping_incentive_refund
seller_shipping_fee_discount return_shipping_label_fee

Fulfillment Fee

return_shipping_fee_paid_buyer, return_shipping_fee_reimbursement

Refund Restocking Fee

seller_cofunded_discount, seller_cofunded_discount_refund

Seller Funded Discount

sales_tax_refund, retail_delivery_fee, retail_delivery_fee_refund

Sales Tax

Note: This mapping helps ensure your reconciliation reports and journal entries reflect the correct categorization across your TikTok orders.


Settlement & Reconciliation Process

  • TikTok sends settlement reports
    These include transaction-level data on sales, refunds, fees, and taxes.

  • Reports are parsed and reconciled
    The system ingests these reports and matches them to your internal order and accounting systems (e.g., Shopify or NetSuite).


New Features & Tools

Order Profile Page

A new view that links each TikTok order to its associated payments, refunds, and payouts. This single-page interface replaces the need to toggle between systems or pages.

Global Search

Search by order ID, payment reference, or transaction number to instantly surface full transaction histories.


Integration Process Overview

Step 1: Connect Your TikTok Shop

Step 2: Enable Smart Adjustments

  • Ensure Smart Adjustments are turned on in your account.

  • This unlocks key features such as:

    • The Order Profile page - can see order and payment details all on the same page.

    • Global search - Search by Order, Order Refund, Payment, Gift Card, and Bank Transaction, which then will lead to the order profile page.


After Integration

Orders Page

  • Be able to select channel or AR (under Filters) as TikTok to review TikTok orders.

Payout Summary

  • Be able to select payment source as TikTok Shop, and can expect reconciliation like the other payment processors.

How Sales Tax Liability Is Handled

When a TikTok order is created, our system automatically creates a sales tax liability. This means that at the time of the order, we recognize that a certain amount of tax has been collected and is owed to a jurisdiction. That liability lives on your books until TikTok remits the tax on your behalf.

When the TikTok settlement occurs, we do two things:

  1. Remove the amount from Accounts Receivable — since you've collected it.

  2. Reduce the liability — since TikTok remitted the tax for you.

This dual-entry approach mirrors how accrual accounting typically works and is similar to how we handle deferred revenue or other marketplace integrations like Amazon Seller and Meta (Facebook/Instagram).

Optional Mapping for Liability-Free Preference

Some customers prefer not to carry the sales tax liability on their books because they’re not the remitting agent (Marketplace Facilitator) — TikTok is. For those cases, there’s a flexible workaround:

  • You can map the remitted tax to Accounts Receivable instead of a liability account.

  • This reduces the amount you expect to receive from TikTok and avoids showing that tax as a liability on your balance sheet.

We support both accounting approaches, and your team can choose the one that aligns with your chart of accounts and financial reporting preferences.


FAQ

How does this compare to other marketplaces?

TikTok’s structure is similar to Amazon Seller and Global E, especially in how it handles fees, commissions, and remitted tax. Our system is built to normalize those formats.

What if I sell internationally?

Right now, this integration supports USD-only TikTok Shops. UK and other International Currency support requires separate authentication - please contact your Customer Support Manager if interested in connected other markets.

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