Revenue Recognition for direct chargesBeta
Learn how Revenue Recognition works with direct charges.
Revenue collected with application fees![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
With Connect, your platform can make charges directly on the connected account and take application fees in the process. To add an application fee on a direct charge, pass an optional application_
value. Stripe recognizes the revenue immediately.
In this example, the application_
is set on the direct charge.
- On January 15, you make a direct charge of 10 USD with a 2 USD application fee.
- The 2 USD application fee transfers to your platform.
- 8 USD is netted in the connected account.
Account | Jan |
---|---|
Revenue | +2.00 |
Cash | +2.00 |
Contra revenue with issuing refunds![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
To refund an application fee, pass a refund_
value of true
in the refund request or provide a refund_
value of false
to refund the application fee separately through the API. In both cases, Stripe books the refunded application fee as contra revenue.
In this example, the application_
is set on the charge.
- On January 15, you make a direct charge of 10 USD with a 2 USD application fee.
- The 2 USD application fee transfers to your platform.
- 8 USD is netted in the connected account.
- On February 21, Stripe refunds the full charge amount of 10 USD and the full application fee amount of 2 USD.
Account | Jan | Feb |
---|---|---|
Revenue | +2.00 | |
Cash | +2.00 | -2.00 |
Refunds | +2.00 |