How should I categorize Shopify payouts?

When Shopify pays out to your checking account, this should be booked to Shopify Receivable clearing.

Here’s how it works:

The Sales of Product Income - Shopify is booked by Pocket by the nature of you connecting Pocket to the Shopify platform. So we pull in your sales, which books the Sale and the corresponding Shopify Receivable. This is because you’ve made the sale via Shopify, but Shopify has not yet paid out that cash to you.

Typically, a few days (or weeks) later, there is a Cash Inflow transaction from Shopify, which represents the payout to your checking account from previous sales. You then no longer have an outstanding Receivable, thus this cash inflow from Shopify is booked to the Shopify Receivable account, effectively reducing the Receivables due from Shopify