Returns vs Refunds in Lifetimely and Shopify

Refunds and returns are processed differently in Lifetimely and Shopify, which can result in differences in financial reporting. This guide explains how refunds are tracked, key differences between the platforms, and how settings impact your reports.

Key Differences

• Shopify records refunds and returns separately to manage both inventory and financial data.
• Lifetimely focuses on revenue and profitability, recording only refunds that impact financial outcomes.

How This Affects Your Reports

• ✅ Lifetimely tracks only revenue-impacting refunds, excluding returns that do not result in a refund.
• ✅ Reports reflect actual revenue loss, preventing inflated sales due to pending returns.
• ⚠️ Shopify may temporarily display higher sales since returned items remain in sales totals until refunded.
• ✅ Lifetimely adjusts net sales as soon as a refund is processed, keeping revenue figures accurate.

Due to these differences, sales and refund totals in Shopify and Lifetimely may not always match in real time.

How Lifetimely Tracks Refunds

Retrieving Refund Data

• Refund data is collected and filtered to retain only relevant transactions.

Valid Refunds

• Only successfully processed refunds are included in reports.
• If a refund amount is modified, the latest value is reflected.
• Refunds outside the reporting period are excluded.

Refund Date Assignment

• Default: Refunds are recorded based on their processing date.
• Alternative: Enabling “Assign refunds to the original order date” aligns refunds with the original order date.

Refunds & Product Costs (COGS)

• Reset product costs for refunded orders: Excludes refunded orders from COGS calculations.
• Restocked items: Removed to prevent double-counting inventory.

Adjusting Your Settings

To configure refund tracking, go to Lifetimely > Settings > Calculation Logic

Assign Refunds to the Original Order Date

• Enabled: Refunds appear on the original order date to match sales trends.
• Disabled (default): Refunds appear on the processing date, matching Shopify’s approach.

Reset Product Costs to Zero for Refunded Orders

• Enabled: Refund-related product costs are excluded from COGS.
• Disabled (default): Product costs reset only if the refunded item was restocked.

What Does This Mean for You?

By understanding how Lifetimely and Shopify track refunds, you can:

• ✅ Ensure sales, refunds, and COGS align with your financial goals
• ✅ Adjust settings to suit your profitability tracking needs
• ✅ Minimize discrepancies when comparing data across platforms