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How to Fix Shopify Payout Posting Errors Caused by Refunds Syncing as Line Items

This article helps Webgility Desktop users resolve Shopify payout posting errors caused by refunds syncing as line items instead of credit memos. This configuration issue prevents accurate refund recording and blocks successful payout posting. The article guides users in identifying the root cause, adjusting sales channel settings, and reprocessing the affected order.

Symptoms

  • You receive an error during payout posting that mentions refunds showing as line items

  • The payout fails to post, and Webgility Desktop is unable to create a credit memo

  • You may notice that refunded amounts are incorrectly added to the product list rather than handled as a refund

Root Cause

This issue occurs when the "Get refunds and record in" setting in your sales channel connection is either:

  • Disabled, or

  • Misconfigured

When this setting is off, refunds are downloaded as regular line items instead of being recorded as credit memos, which QuickBooks Desktop expects for accurate reconciliation. This prevents Webgility Desktop from completing the payout sync.

Resolution Steps

Step 1: Check Your Refund Settings in Sales Channel Integration

  1. Go to Connections > Sales Channels from the Webgility Desktop admin interface.

  2. Find the sales channel where the issue occurred.

  3. Click on Settings for that channel.

  4. Locate the option “Get refunds and record in”.

  5. Make sure this setting is enabled.

Save any changes you make.

Step 2: Undo-Sync and Re-download the Order

  1. Identify the affected order from ‘Posted Orders’ tab .

  2. Use Actions > Undo Sync to remove the order and its incorrect data.

  3. Once undone, re-download the order using the updated settings.

Step 3: Confirm Refund Is a Credit Memo

  • Open the re-downloaded order and review all line items.

  • Ensure that the refund now appears as a credit memo, not as a product or SKU line.

  • Double-check payout totals for accuracy.

Step 4: Reattempt Payout Posting

  • With the correct refund data now in place, go ahead and Post the Payout.

  • Confirm that no errors appear related to refund handling or item mapping.

  • Check QuickBooks Desktop to verify that the payout posts successfully.