Recognize revenue with Stripe

If you have subscriptions through Stripe Billing (like monthly, quarterly, and so on), no further setup is required. Stripe Revenue Recognition automatically recognizes this revenue for you.

Stripe recognizes the transaction amount by the service period for each invoice line item. By default, we recognize the revenue by the millisecond.

As an example, say you have a customer who started an annual subscription on September 1 for the price of 365 USD. If you want to recognize the amount monthly, your report at the end of December would show this:

If you have usage-based billing subscriptions through Stripe Billing, no further setup is required. Stripe Revenue Recognition automatically recognizes this revenue for you.

As an example, say you have a customer on a usage-based billing plan where it costs 1 USD per API call and the next invoice is on September 10. They make ten API calls in July so, at the end of the month, the journal entries look something like:

They make six API calls in August:

They make three API calls in September. They make one before September 10 and two after. At the end of the month, the journal entries look something like:

You can set up rules to automatically recognize your recurring revenue even if you don’t use Stripe Billing (but still use Stripe as a payment gateway).

As an example, say you receive two types of recurring payments from your customers: a 10 USD payment and a 120 USD payment. You need to recognize the 10 USD payment over 1 month, and the 120 USD payment over 1 year, so you create these revenue recognition rules:

Use more than one invoice item to structure a product bundle so you can recognize the revenue from more than one product. Each invoice item represents a different product with its own amount and service period.

You can create invoice items with these APIs:

• Invoice Items—Create an invoice item with a specific service period and amount. When you create an invoice, Stripe automatically includes the invoice items in the invoice for you.
• Subscription Schedules—Create a schedule for a subscription. You can add one-time invoice items to a subscription schedule that would show up in an invoice. This can be useful for one-time fees on a recurring service.

If you want to recognize revenue differently for any invoice item, import the recognition dates that Stripe should use.

As an example, say you offer a 9 USD monthly service with a one-time setup fee of 50 USD. The invoices would look something like:

The revenue schedule would look something like: