Revenue Recognition contracts

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Revenue contracts adds flexibility to customize revenue and consolidate transactions in revenue recognition. This enhances the ability to track key metrics at a contract level and improves your financial insights.

Moreover, it facilitates the representation of enterprise sales-led contracts while also decoupling Billing and Revenue Recognition implications.

Customize revenue

Revenue contracts enables the creation of custom contract items that dictate how revenue is recognized instead of invoice line items. It allows you to attach billing models (for example, invoices, subscriptions, payments) to the contract used as payment collection containers.

Example

Given a 2-year B2B contract with monthly billing, you can create a contract item for the 2-year period:

You can then attach a transaction/billing model to the contract to be used for payment allocation:

Given this contract setup, Revenue Recognition can augment reports by incorporating non-GAAP accounts like contract assets and deferred revenue. In turn, this enables us to elevate our metrics as the contract undergoes monthly billing.

High-level metrics

Revenue contracts enables the ability to track high-level metrics across a group of contract items and transactions such as:

• Total contract value
• Annual contract value
• Billing to date
• Revenue to date
• Future schedule billings
• Unbilled deferred revenue

Integration

Salesforce CPQ Connector

Stripe has developed a connector that seamlessly integrates with your Salesforce CPQ account, enabling the translation of all orders and contracts. This connector facilitates the management of revenue contracts associated with your Salesforce orders, along with the management of Billing subscriptions.

API

We’re working on introducing direct API support to facilitate the creation and management of revenue contracts.

Onboarding

Contact us if you’re interested in onboarding to revenue contracts using any of the available methods.