This article aims to provide a guide on validating Loop Journal Entries (JEs) with GrubHub financial reports for accrual-based accounting.
Loop generates JEs for selected cadence/date ranges in the GL entries page based on transactions and activities as they occur, rather than when payouts are generated.Discrepancies may arise when we compare these accrual-based JEs with DoorDash payout reports as chargebacks, reversals, and miscellaneous charges related to earlier transactions (falling outside the intended date range) might also be part of the payout reports.
Recommended Validation process
To ensure accurate validation, we recommend comparing your JEs with Transaction Reports from GrubHub rather than payout reports. Follow the steps below to validate JEs effectively:
Validation Steps for GrubHub Transaction Reports
Generating and comparing the transaction report
2. Navigate to “Financials” and then to "Transactions" from the left panel
3. Apply filters: Here select the desired location(s) and date range for validation. Ensure it matches the exact period you are validating your JE for
Reviewing and comparing the report
Transaction Totals will populate on the screen allowing you to compare the numbers reported under different categories by the merchant with the numbers in your JEs.
Example Comparison
Below we have compared a week of JEs as generated by Loop with Grubhub transaction reports, showcasing how to validate the numbers effectively.
Loop Journal Entry
Transaction report from Grubhub for same location and date ranges.
Comparison:
1. Subtotal: Restaurant total (i.e. subtotal + tax) matches the Subtotal reported in JE
2. Marketing: Marketing expense is labelled as Commission in the Grubhub report and the amounts in both reports are identical
3. Net payout/Net Total: Cash for the date range reported in JE aligns with the merchant report and is labelled as net payout in JE whereas in Grubhub its under Net Total
4. Commission: The Commission amount in JE and merchant portal (i.e. Delivery Commission + Processing Fees) also match.
Other Validation Articles: Doordash UberEats
If you have any further questions or concerns, feel free to reach out to our support team on support@tryloop.ai.