FAQ

Why doesn’t a one-off invoice amortize revenue?

​​Revenue Recognition recognizes 100% of an invoice’s revenue only when the invoice is finalized and the service period isn’t set.

You can use the data import feature to set the service period on an invoice line item after the invoice is finalized.

Can we set the service period on an invoice line item?

​​Use the data import feature to set a new service period on an invoice line item.

Can we set a service period on a charge?

Use the data import feature to set a new service period on a specific charge.

How do we move from cash accounting to accrual accounting?

​​To configure revenue recognition for cash accounting, set a rule that matches all line items and select Amortize over custom service period from the treatment drop-down menu. Enter 0 for the Amortize starting and the from paid time over fields. ​​ ​​Set the rule’s effective period to All past dates through the date of your accounting switchover. ​​ ​​This rule ensures that Revenue Recognition doesn’t amortize revenue before the date of the switchover, and effectively uses the cash accounting for a period before switching to accrual accounting.

How accurate is Revenue Recognition? How does Revenue Recognition comply with ASC 606 and IFRS 15?

Stripe Revenue Recognition automates the tedious part of revenue calculation, which follows the guidelines from ASC 606 and IFRS 15.

Nevertheless, being compliant is fully your responsibility.

Can we modify the revenue schedule of a metered billing line item?

Not currently, but please contact us at stripe-revenue-recognition@stripe.com if you need this functionality.

Can I test Revenue Recognition to see if it works for my use case?

Yes. Stripe offers a 30-day free trial for Revenue Recognition. You can also use Revenue Recognition in test mode to explore all of its features for free. To use test mode, toggle View test data to on when you sign up.

Reports in test mode are based on existing test mode transaction data. Settings, rules, and transaction overrides in test mode don’t affect your live mode reports. Using test mode is a great way to test customized settings or evaluate whether Revenue Recognition works for you.

​​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 and network costs from the Balance change from activity report before reconciling.

I set a rule yesterday. Why doesn’t the rule impact the report?

​​Rules are typically applied to reports 24-48 hours after setting them. For more details, read the rules docs.

​​If the rule’s status is active, the rule has been applied to the report. If the rule’s status is processing, the rule hasn’t been applied to the report yet.

Can we open accounting periods after setting rules?

Yes. The order of these operations doesn’t matter, except when you intend to issue corrections. In that case, you must close the accounting period before setting any rules.

How much does Stripe Revenue Recognition cost?

We charge 0.25% on payments volume in Stripe Revenue Recognition. If your volume in a given month exceeds the threshold in your local market, we’ll lower our fee from 0.25% to 0.20% of volume in that particular month. Learn more about Revenue Recognition’s pricing.

When do you charge a fee for Stripe Revenue Recognition?

We charge a fee for every payment processed through Stripe. To see what fees have been charged, read the fees report, which Stripe updates daily. Some fees for line items may take a few days to appear in the report.

The following table explains when Revenue Recognition charges fees.

Do you refund the Revenue Recognition fee when a payment is refunded?

No. The Stripe Revenue Recognition fee isn’t refunded if the corresponding payment is refunded.

If an invoice is voided, do I still get charged a fee on that invoice if it’s used by Revenue Recognition?

No. Stripe only charges Revenue Recognition fees on transactions that have been successfully processed. If an invoice is voided, it won’t be included in your monthly volume.

Do you charge a fee for additional features?

We currently don’t charge fees for:

• Rules
• Reports
• Accounting period controls
• Data export

Do you charge a fee when I exclude a transaction from Revenue Recognition?

We charge a fee for all transactions processed by Stripe, which means you incur a fee even if you exclude a transaction from Revenue Recognition.

If I handle multiple currencies (e.g., dollars and euros), do I need to reach 100,000 USD or 100,000 EUR in monthly volume to reach the lower-priced tier?

Each currency has an equivalent threshold. To see the thresholds for your supported currencies, go to the Revenue Recognition pricing page.

If you have multiple settlement currencies, the combined percentage of thresholds met determines the final fee tier. For each currency, we compute the percentage of volume to the currency’s volume threshold. We call this percentage-to-threshold volume. If the total percentage-to-threshold-volume is more than 100, you qualify for the lower tier.

Here are two example scenarios:

Scenario 1

In this case, the total percentage-to-threshold-volume is 82%, which means you don’t qualify for the discount.

Scenario 2

In this case, the total percentage-to-threshold-volume is 120%, which means you get the discount.