How do we reconcile data from Revenue Recognition with other financial reports?
You can reconcile the cash account from Revenue Recognition and the Balance change from activity report within the same month.
Because Revenue Recognition currently focuses on revenue-generating activities, you must exclude fees, network costs, contributions, and financing paydowns from the Balance change from activity report before reconciling.
Let’s say you want to reconcile cash accounts in USD. Here’s an example of how to do that:
To get the cash amount in Revenue Recognition, download the balance sheet report in summary format. Let’s assume the report looks something like this, and the amount is 100 USD:
To get the cash amount in the Balance change from activity report, set the currency to USD, and the report timezone to UTC. After downloading the report in the summary format, the report looks something like this:
The total gross already excludes some Stripe fees. After deducting rows for additional Stripe fees, network costs, contributions, and financing paydowns, the calculated cash amount is 100 USD.
How do we create journal entries for fees, network costs, contributions, and financing paydowns?
The journal entries in the Debits and Credits report don’t consider fees, network costs, contributions, and financing paydowns. Use the Balance change from activity report to calculate these fees and manually create a journal entry.
Download the Balance change from activity report in summary format. Make sure you select the Reporting Category, Gross, and Fee columns.
Calculate the total fee by summing the fee, network cost, and contribution in the gross column, and the total of the fee column.
|platform earning refund||-0.10||0.00|
In the above example, the total fees would be
-1000.00 + -0.50 + -0.04 + -1.00 which sums to
You can now make a manual journal entry debiting Fees, an expense account, and crediting Cash by