Revenue Recognition contracts
Learn how to configure revenue contracts and model enterprise B2B sales contracts in Stripe Revenue Recognition.
The revenue contracts feature facilitates the representation of enterprise sales-led contracts in Revenue Recognition. It allows you to customize revenue schedules using custom performance obligations that are decoupled from billing periods. Additionally, you can track key metrics at a contract level and improve your financial insights.
Customize revenue schedules ![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
Revenue contracts enables the creation of custom contract items that dictate how revenue is recognized instead of invoice line items. It allows you to attach billing models (for example, invoices, subscriptions, payments) to the contract used as payment collection containers.
Example ![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
Given a 2-year B2B contract with monthly billing, you can create a contract item for the 2-year period:
Contract Item | |
---|---|
Amount | 10000 |
Price | price_1 |
Period | Jan 1, 2022 - Jan 1, 2024 |
You can then attach a transaction/billing model to the contract to be used for payment allocation:
Billing Model | Type |
---|---|
sub_sched_1 | Subscription Schedule |
Given this contract setup, Revenue Recognition can augment reports by incorporating non-GAAP accounts like contract assets and deferred revenue. In turn, this enables us to elevate our metrics as the contract undergoes monthly billing.
Track contract-level metrics ![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
When you open up a revenue contract in Revenue Recognition, you can track high-level metrics across a group of contract items and transactions such as:
- Total contract value
- Annual contract value
- Billing to date
- Revenue to date
- Future schedule billings
- Unbilled deferred revenue
Integration ![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
Salesforce CPQ Connector ![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
You can import all your orders and contracts generated in Salesforce using the Stripe Billing Connector for Salesforce CPQ. When this connection is set up, you can manage Stripe Billing subscriptions and revenue contracts associated with your Salesforce orders.
API Private preview![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
You can create and manage revenue contracts through an API integration.
Contact us to participate in the private preview.