Revenue Recognition for usage-based billingPrivate preview

The Stripe Revenue Recognition feature for usage-based billing helps with the revenue recognition process for businesses that use usage-based billing models. It allows you to recognize revenue that aligns with actual customer consumption, which can help provide accurate financial tracking and improved cash flow management.

Usage-based metered event

If you have a usage-based billing metered event through Stripe Billing, it requires no further setup. Stripe Revenue Recognition automatically recognizes this revenue for you.

As an example, say you have a customer on a price where it costs 1 USD per unit with a subscription for 100 units. They consume these units over multiple days and months as follows:

• 20 units 2025-03-02
• 25 units 2025-03-30
• 15 units 2025-04-01
• 25 units 2025-04-20
• 15 units 2025-04-28

In this case, the customer consumed a total of 45 units in March and 55 units in April without being billed for them. The ledger entries for this revenue recognition would look like this:

Billed usage-based metered event

According to your configuration, an invoice is generated for the consumed units, including the recorded usage.

Continuing with the previous example, an invoice was finalizes on 2025-04-01, capturing the consumption of 60 units. At the end of the month, the journal entries would look something like this: