Revenue Recognition settings
Learn how to adjust the behaviour of Revenue Recognition with settings.
Access the Revenue Recognition settings on the settings page to customise how revenue is recognised specifically for your business.
When completed, all Revenue Recognition charts and reports reflect the settings within 24 hours.
Accounting period
Use accounting period control to configure how to close accounting periods. You can either manually close the books with all checks and adjustments finished each month, or you can let Stripe automate closing the books.
You can also reopen past accounting periods using accounting period control. This is useful when you first start using Revenue Recognition because it allows you to make adjustments to past data without creating corrections in the current period. For example, when you apply rules to fit Revenue Recognition with your own business model, it changes the history of closed accounting periods. You can decide to reopen closed accounting periods or make adjustments in the current accounting period.
Amortisation granularity
Amortisation refers to the process of gradually recognising revenue over the duration of a service period. By default, Revenue Recognition recognises revenue by the millisecond. We also support recognising revenue by the day, or by the month with different treatment options for handling the first and last months of the service period.
| Amortisation | Descriptions |
|---|---|
| By millisecond (default) | Recognise revenue down to the millisecond. |
| By day | Recognise revenue down to the day. Cut off the last day. |
| By month evenly | Recognise revenue down to the month. Cut off the last month. |
| By month evenly, first and last month pro rata | Recognise revenue down to the month. Prorate the amounts in the first and last months by millisecond. |
Adjusting this configuration affects all of your journal entries within Revenue Recognition. If you want to avoid creating corrections in the current period, we recommend that you open all accounting periods prior to the adjustment.
Catch-up revenue
Revenue Recognition primarily recognises revenue based on the service period attached to transactions. However, when the service period begins before the booked date (the finalisation date for an invoice, the creation date or imported booked date for a standalone charge), the revenue from the previous periods is instead recognised entirely in the month of the booked date to avoid making changes to the past. We refer to this type of revenue as catch-up revenue.
To disable or enable this behaviour, toggle Apply catch-up revenue.
Toggling this configuration affects any applicable journal entries you have within Revenue Recognition. If you want to avoid creating corrections in the current period, we recommend that you open all accounting periods prior to the adjustment.