Create a rule
Learn how to create a rule.
You can create and manage Revenue Recognition rules from the Stripe Dashboard. To create a rule, click Add rule from the Rules page.
A rule consists of the following key components:
- Name
- Apply to
- Revenue treatment and allocation
- Effective period
Conditions (“Apply to”)
A set of conditions specifies which transactions (for example, charges, invoice line items) that a rule applies to.
Caution
A transaction fulfills the condition requirement when all the conditions are true.
Effective period
An effective period specifies the time period that a rule applies to.
For an invoice line item, if the finalization time for the invoice falls within the specified effective period, the invoice line item fulfills the effective period requirement.
For a charge, if the balance transaction that it corresponds to has a creation time that falls within the specified effective period, the charge fulfills the effective period requirement.
Caution
For a rule to apply to a transaction, the transaction must fulfill both the effective period and condition requirements. By default, rules don’t retroactively apply to past dates in their effective periods. If you want rules to apply to past dates, create a ticket on our support page.
Treatments
When a transaction fulfills both the effective period and condition requirement, a set of defined treatments are applied.
A treatment consists of its type and the allocation percentage.
The allocation percentage specifies how much of the amount the type of treatment applies to.
The type of treatment specifies how to treat the amount. Here are the treatment types that we support:
- Defer and recognize revenue at a specified time (applicable to charges only)
- Categorize the amount as passthrough fees
- Categorize the amount as tax
- Exclude the amount
- Amortize the amount over a specified period (applicable to charges only)
- Amortize the amount over the service period for an invoice line item (applicable to invoice line items only)