WooCommerce Integration with ReAI

If you run an online store on WooCommerce, your accounting software needs to keep up with every order, refund, shipping charge and VAT calculation your shop produces. Manually entering WooCommerce orders into your accounts is time-consuming and error-prone – especially as your order volume grows.

The ReAI-WooCommerce integration solves this by automatically syncing your store data with your accounting records.

What the integration does

Connecting WooCommerce to ReAI automates the flow of financial data:

• Orders are imported as sales invoices (or receipts) in your accounting system
• VAT is calculated and recorded correctly based on your WooCommerce tax settings
• Refunds create credit notes and reverse the original accounting entries
• Shipping charges are separated from product revenue
• Payment gateway fees (Stripe, PayPal, etc.) are recorded as expenses
• Customer records are synced so your accounts reflect who is buying from you

How WooCommerce orders flow into your accounts

A typical order

A customer buys a product for £50 + £10 shipping, paying £72 total (including £12 VAT):

When the payment is received (via Stripe, PayPal or bank transfer):

If a payment gateway fee applies (e.g., Stripe charges £1.21):

Transaction level vs summary level

You can choose how transactions are imported:

For most small to medium WooCommerce stores, daily summaries provide the right balance of accuracy and manageability.

VAT handling

WooCommerce handles VAT based on your store settings, but the accounting treatment requires care.

UK domestic sales

Standard UK sales are straightforward: 20% VAT on most goods, zero-rated on certain items (children’s clothing, books, most food).

Make sure your WooCommerce tax classes match the actual VAT rates for your products:

International sales

If you sell to customers outside the UK, VAT treatment varies:

The integration should record the correct VAT treatment for each order based on the customer’s location and VAT status. Check that your WooCommerce tax settings align with these rules.

Refunds and returns

When you process a refund in WooCommerce, the integration:

1. Creates a credit note in your accounts linked to the original invoice
2. Reverses the revenue for the refunded items
3. Reverses the output VAT on the refunded amount
4. Records the refund payment back to the customer

Partial refunds

If you refund only part of an order (for example, one item from a multi-item order), the integration should:

• Create a partial credit note for the specific items refunded
• Leave the remaining items on the original invoice
• Adjust VAT proportionally

Shipping refunds

If you refund shipping charges, this should be recorded as a separate reversal of shipping revenue, not lumped in with product refunds. This keeps your reporting accurate.

Inventory and cost of goods sold

WooCommerce tracks stock levels, but the accounting for stock requires more than just counting units.

Stock valuation

At any point in time, your stock is valued at the lower of cost and net realisable value:

• Cost = purchase price + import duties + inbound shipping
• Net realisable value = expected selling price - costs to sell

COGS calculation

Your profit depends on accurately tracking cost of goods sold:

COGS = Opening stock + Purchases - Closing stock

The integration can help by recording cost prices from WooCommerce product data, but you need to ensure purchase costs are accurate and updated when supplier prices change.

Discounts and coupons

WooCommerce discount codes and coupons need correct accounting treatment:

The key principle is that VAT is calculated on the amount the customer actually pays, not the original price. Your integration should handle this automatically based on WooCommerce’s discount calculations.

Subscription orders (WooCommerce Subscriptions)

If you use WooCommerce Subscriptions for recurring billing:

• Each renewal generates a new order, which imports as a new invoice
• Revenue recognition – match income to the subscription period, not the payment date
• Failed renewals – orders that fail to process should not be recorded as revenue until payment is received
• Cancellations and refunds – handled as credit notes against the relevant invoice

Setting up the integration

1. Install the integration – connect ReAI to your WooCommerce store via API key
2. Map product categories to accounting revenue accounts (if you want to separate product lines in your reporting)
3. Configure VAT treatment – ensure tax classes in WooCommerce match your VAT codes in ReAI
4. Set the sync frequency – real-time, hourly or daily depending on your volume
5. Choose transaction detail level – individual orders or daily summaries
6. Run a test sync – import a sample of orders and verify the accounting entries
7. Enable ongoing sync – switch on automatic imports

Troubleshooting common issues

Reporting from integrated data

Once WooCommerce data flows into your accounts, you can generate reports that combine online sales with the rest of your business:

• Revenue by channel – compare WooCommerce sales with other channels
• Product profitability – revenue minus COGS minus fees by product line
• VAT summary – total output and input VAT for your VAT return
• Payment gateway costs – what you are actually paying in processing fees
• Refund rates – monitor returns as a percentage of sales

Having all your financial data in one place – accounting software that integrates with your store – means you spend less time compiling reports and more time acting on them.